Fifty units in a new affordable housing complex are set to open next week, marking the first rental development for the community since 2008.
The city issued a temporary certificate of occupancy, so even though builders likely won’t completely wrap up the finishing touches to Lumien Apartments at 32nd Street and East Animas Village Drive until the end of the year, property managers expect families can start moving in as early as Wednesday.
Kelly Kenny of Pillar Property Services anticipates about eight units to be occupied next week, and about 17 over the next few weeks.
“We’re trying to get capacity at 50 percent by mid-October,” she said. “There is a great need for affordable housing.”
Scott Shine, a planner with Durango’s Community Development Department, said temporary permits are not uncommon, but demand to occupy the new apartments has been great.
“We’ve gotten direct calls about how to lease the units and had to refer them to the property managers,” Shine said. “I think Durango is such a great place to live, and a lot of people want to live here,” he said.
But other factors are at work, including Durango’s approximate 2 percent vacancy rate and growing lack of room for expansion. Most of the city’s land conducive to building has already been developed.
Moreover, apartment complexes such as Lumien, which place a cap on renters’ income, are attractive to those who may find that a home purchase in Durango is financially out of reach.
The Durango Area Association of Realtors’ most recent quarterly report indicates home prices in town reached a new peak. The median price of a home in Durango is now $440,000. In 2006, the pre-recession peak topped out at $426,500.
The median price of a townhome or condo within city limits is $279,000 – a nearly $50,000 increase from 2012.
But renting isn’t necessarily easy on the pocketbook, either. According to a report from the Colorado State Division of Housing, the price of rent in Durango has shot up by 38 percent over the past three years.
The prices of houses in town aren’t for certain driving away potential home buyers, but there is irrefutable interest in renting at the new housing development. Kenny reported 450 on the interest list for Lumien’s first 50 units, which are leased to whomever qualifies.
A household of two at Lumien could earn no more than $35,760 annually.
Eligible renters have spanned demographics and ranged from senior citizens to young families to people with disabilities, Kenny said, and she anticipates little trouble filling an additional 40 units planned for Phase 2.
Rent prices are set based on the Area Median Income and can be as low as $364 per month. Two-bedroom units can go for as high as $963, but Kenny said those are offered at a special right now for $899.
One-bedroom units range from 627 to 686 square feet. Two-bedrooms are 894 to 953 square feet.
An open house reception is planned from 11:30 a.m. to 1 p.m. Oct. 1 at 3190 East Animas Village Drive.
In mid-2016, 100 rental units are slated to open in Three Springs. Those units, however, do not meet affordable housing criteria.
Because of high rental costs, Colin John is looking outside city limits to buy a home.
“No more paying rent. I want to pay mortgage,” John said.
John, 21, has lived in the area for 12 years, and now rents south of town near La Posta Road. When he lived in town, he lived with his parents. Now he and friend Walker Rodman, 22, want to become homeowners.
“We’re actively looking, and the only affordable stuff is in Ignacio or out by Vallecito,” Rodman said. “There’s not a lot going on here.”
jpace@durangoherald.com
