Growing housing deficit pushes builders like Oakwood Homes to innovate

Colorado isn’t the only area struggling to produce enough homes to meet demand.

A survey reveals that many U.S. cities face significant housing shortages, with some mayors anticipating deficits of over 50,000 units.

That shortage continues to increase housing prices, making buying a home increasingly unaffordable. Median home prices hit $488,272 nationally last year and sat at $580,000 in Denver in November and December.

The United States Conference of Mayors and the American Institute of Architects National Housing Survey released in mid-January shows the housing shortage is a national problem.

• Over half of the mayors surveyed anticipate a 5,000-to-20,000-unit shortfall in their city in the next 5 years.
• Almost one in six mayors anticipate a 20,000- to 50,000-unit shortfall in their city. According to The Denver Regional Council of Governments, Denver needs more than 50,000 units now and will need more than 500,000 by 2050.
• The median home sale price increased 21% over the past three years to $488,272. In metro Denver, it was $580,000 at the end of 2024.
• More than one in four mayors reported a greater than 30% increase in the median home sale price over the past three years.
• Nearly three-quarters of mayors reported a 20% increase in the median home sale price over the past three years.

Meanwhile, developers like Oakwood Homes continue to push for innovative solutions to tackle the pressing need for affordable housing.

Michael Fraley, Oakwood Homes’ chief growth officer, said the company continually considers how to revamp its product lines to make homes more affordable. The company also uses technology through its On2 Homes, which creates high-quality, factory-made single-family homes with customization options.

Oakwood offers On2 Homes at Reunion Ridge in Commerce City. The homes start in the mid-$300s.

“That hits a price point for single-family homes that’s rarely available in the area,” Fraley said. “It helps fill that gap.”

The company also is working to provide affordable options for homebuyers to age in place. Oakwood offers its Oakwood Life 55+ active adult communities in Aurora and Colorado Springs.