According to Zillow, the average cost of a home in Colorado is over $550,000. A 1.2% decline from last year. But in Newcastle, a town of under 5,000 people in the Roaring Fork Valley, the average value of a home is over $600,000- up almost 4% from last year. And compared to its neighboring Carbondale and Glenwood Springs, where home values peak in the millions, it's on the lower end of costly.
But if the Roaring Fork Valley's upward trend continues, this rural town could soon be facing the same extreme housing shortages as its upvalley neighbors. To offset these shortages, officials are asking developers to designate affordable units. New Castle has a few major developments on the books, but they're facing significant challenges. Here's New Castle Mayor, art Riddle, speaking with KDNK's Marilyn Gleason.
"We're not quite certain why they are delayed, but there's speculation that it's the cost of materials, the high interest rates, the labor impact where they can't find enough people to work or the cost of the labor. I don't think we're gonna see any groundbreaking for the rest of this year for the major developments."
While the larger projects stall construction for individual homes in Castle Valley and Lakota are already under construction. There are 130 apartment units and 40 single family homes planned for Castle Valley and in Lakota.
The Romero Group's roughly 180 units include apartments, townhouses, and single residency builds. Mayor Riddile says the developments will include affordable options.
"Lakota was most generous in exempting I think about 25 apartment units for affordable housing. The apartments over by VIX park- I think we're talking three to five units."
When these projects will be back on track, officials don't know. And Riddile says, affordable living in New Castle doesn't have one easy solution.
"We've looked at so many different ways to do this and nothing seems practical at this point. There's been a lot of coalitions developed, and we have found that negotiating with the developers has been the best and easiest way to get affordable units in this town."
Town staff have received no official reasons for the delay in construction, but Riddile suspects inflation and high interest rates are among the driving factors. This is a developing story that we will continue to cover
KDNK's Marilyn Gleason contributed to this story.
