The 15 townhomes on Pioneer Avenue in Three Springs sold before the units were finished this year.

It’s a fairly common trend in the subdivision on the eastern edge of Durango that’s expected to absorb much of the town’s growth.

“Virtually every project we’ve sold in Three Springs has sold out prior to completion,” said Emil Wanatka, president of Timberline Builders.

Construction across Durango is not keeping up with demand for housing, and while the flat lots and predictable design standards make Three Springs an appealing option for builders, prices in the area are up and may continue to rise, builders say.

Three Springs could see thousands of homes added, but units are not going up fast enough – in the subdivision or anywhere else – to temper prices.

The average home price in the city was $426,928 in May, according to the La Plata Economic Development Alliance.

A family would need more than what two average salaries can bring in to buy a house this year, Alliance data show.

With demand driving up prices, one would expect the construction industry to be ramping up in town, but it’s facing a labor shortage, a lack of available lots and hefty permit and impact fees, Wanatka said.

There isn’t a single regulation at fault. It’s the cumulative effect of fees that can add tens of thousands of dollars to the cost of a home, he said.

“To me, it’s like death by a thousand cuts,” he said.

Timberline’s most recent 15 single-story townhomes are some of the 55 similar one-level townhomes the company has built in the subdivision.

The company has built between 75 and 80 homes total in the subdivision, Wanatka said.

“We know that there is great customer demand for single-level living,” he said. The homes appeal to older residents and those who simply don’t want to live with stairs.

The most recent 15 townhomes on Pioneer Avenue were 1,300 square feet on average and priced between $295,000 and $325,000.

In 2014, a Timberline single-story townhome was about $254,900.

Timberline’s next townhome project in Three Springs will be near Sierra Vista Street and Buena Vida Avenue.

Construction on the 10 multi-story units is expected to start in the next few months, Wanatka said.

A 70-unit expansion of the Confluence at Three Springs apartment complex is also underway and may be finished in 2018.

There are also several single-family homes under construction in Three Springs.

Russell Turpin, owner of Custom Touch Builders, recently finished three houses in the subdivision and is designing a fourth one.

He lived in Edgemont for 15 years before moving to Three Springs, and it’s an appealing, friendly neighborhood, where sustainable building is a priority, he said. His wife particularly enjoyed the change of lifestyle.

“We lived in the woods for 15 years. She loves having a lawn and a yard,” he said.

If a grocery store was built along Wilson Gulch Road, which is slated for big box stores, it would only boost the appeal of the area, he said.

However, Turpin echoed some of Wanatka’s concerns about the local construction industry, especially about the shortage of workers. “I don’t think there is a way you could overstate that issue right now,” he said.

The shortage exists at every level of construction, from breaking ground to finishing the house, he said.

He’s also seen prices creep up in Three Springs. The highest demand is for homes in the low $300,000 range to the mid $400,000s, he said.

However, buyers and construction companies are building larger homes for $500,000 and up.

The most recent house Turpin sold in Three Springs was a custom home with a detached garage with an apartment above it, which sold for more than $642,000, he said.

As schools and retail outlets are built in Three Springs, Wanatka expects demand will persist in the area. “It will just make it more and more desirable,” he said.

mshinn@durangoherald.com