Boulder analyzes link between home expansions and affordable housing demand

The Boulder Housing Advisory Board meeting on February 26, 2025, highlighted critical discussions surrounding the impact of single-family home expansions on affordable housing in the community. Board members examined how these expansions could create a demand for affordable housing, as higher-income households move into newly renovated or larger homes, potentially displacing lower-income residents.

The analysis presented during the meeting revealed two main connections: first, that new or expanded homes sell for significantly more than the homes they replace, and second, that these new homes are typically occupied by higher-income households. For instance, the estimated annual income required to purchase an expanded home ranges from $200,000 to $600,000 more than what was needed for the previous homes. This shift raises concerns about the availability of affordable housing for low and moderate-income families in Boulder.

The board discussed three prototypical scenarios of home expansions, which included smaller lot teardowns and larger expansions. These projects are expected to increase property values by approximately $900,000 to $3.5 million. The economic impact analysis suggested that each home expansion could create between one and two jobs in Boulder, contributing to local employment but also raising questions about housing availability for the new workforce.

A significant point of discussion was the assumption that two-thirds of the jobs created would be filled by workers residing in Boulder. While this optimistic outlook aims to mitigate commuting issues, current statistics indicate that less than a quarter of those employed in Boulder live within the city. This discrepancy highlights the ongoing challenge of ensuring that job growth aligns with housing availability.

As the city continues to grapple with these issues, the board's findings underscore the need for a balanced approach to housing development that considers both the economic benefits of new construction and the preservation of affordable housing options for all residents. The discussions from this meeting will likely inform future policies aimed at addressing the housing crisis in Boulder, ensuring that growth does not come at the expense of community diversity and accessibility.