{"id":26103,"date":"2024-08-16T23:39:39","date_gmt":"2024-08-17T05:39:39","guid":{"rendered":"https:\/\/dh.durangoherald.com\/tj\/manufactured-housing-an-untapped-economic-opportunity-for-southwest-colorado\/"},"modified":"2026-03-30T23:33:47","modified_gmt":"2026-03-31T05:33:47","slug":"manufactured-housing-an-untapped-economic-opportunity-for-southwest-colorado","status":"publish","type":"post","link":"https:\/\/dh.durangoherald.com\/tj\/manufactured-housing-an-untapped-economic-opportunity-for-southwest-colorado\/","title":{"rendered":"Manufactured housing: An untapped economic opportunity for Southwest Colorado?"},"content":{"rendered":"

\"Timber
Timber Age, a manufactured housing company headquartered in Durango with a factory in Mancos, putting together a unit. (Courtesy Timber Age Systems)<\/span><\/figcaption><\/figure>\n<\/p>\n

Affordable housing is no new story. People across America \u2013 in cities, small towns and everything in between \u2013 struggle to find a place to live that costs less than 30% of their gross income.<\/p>\n

Colorado has the fifth-highest average rent in the country, at $1,594 a month. And 89% percent of Coloradans call housing an \u201cextremely or very serious problem,\u201d according to TIME.<\/a><\/p>\n

Zooming in, Region 9 \u2013 which is made up of Archuleta, La Plata, Montezuma, San Juan and Dolores counties, plus the Ute Mountain Ute and Southern Ute tribes \u2013 needs roughly 907 homes annually for the next 20 years to meet current and expected demand, according to a 2021 assessment.<\/p>\n

This figure doesn\u2019t include the nearby Navajo Nation, which needs an estimated 34,100 homes<\/a>.<\/p>\n

\u201cThere\u2019s a tremendous need for housing,\u201d said Shak Powers, the regional project manager at Region 9 Economic Development District.<\/p>\n

But he also said the region is in a unique position to meet that need.<\/p>\n

\u201cYou know, everyone says we\u2019re in the middle of nowhere and we\u2019re going to suffer because we don\u2019t have interstates, we don\u2019t have rail, we don\u2019t have major airplanes,\u201d said Powers. \u201cBut when you look at us geospatially, we are equal distance to Denver, Salt Lake, Phoenix, Albuquerque and Las Vegas.\u201d<\/p>\n

What\u2019s more, aside from occasional flooding and wildfires, the region is one of the most disaster-free areas on Earth.<\/p>\n

\u201cWe don\u2019t have tornadoes, we don\u2019t have hurricanes, we don\u2019t have earthquakes,\u201d said Powers. \u201cBecause it\u2019s so free of natural disasters, it is an ideal location for manufactured housing.\u201d<\/p>\n

Manufactured housing works out to be cheaper than traditional, on-site building because the labor that goes into it is less skilled and the houses are quicker to assemble.<\/p>\n

\u201cThey\u2019re built to the same exact codes as any home you live in or I live in, but they\u2019re just built in a factory instead of assembling them on site,\u201d said Eric Schaefer, the chief business development officer at Fading West, a Buena Vista-based manufactured housing company.<\/p>\n

\u201cWe\u2019re finding this is a quicker, faster, more efficient way to build affordable housing in our state,\u201d Schaefer said.<\/p>\n

Fading West puts up 250 to 300 homes a year. In rural towns, costs for such housing is up to 20% less than its stick-built counterpart, Schaefer said.<\/p>\n

An untapped opportunity in a three-legged economy<\/div>\n

Powers called manufactured housing an untapped economic opportunity for the region.<\/p>\n

\u201cThe economy in the western part of the region is like a three-legged stool. You\u2019ve got agriculture, you\u2019ve got tourism, and you\u2019ve got oil and gas,\u201d Powers said.<\/p>\n

We\u2019re in a 20-year drought, which has impacted the agricultural leg. The tourism leg took a hit during the pandemic, though it has recovered, Powers said.<\/p>\n

About 9% of Montezuma County\u2019s revenue comes from oil and gas. That revenue is in danger because it comes from property taxes, which the state is reducing, Powers said.<\/p>\n

Plus, Kinder Morgan Inc. reduced its carbon dioxide production, which in turn impacts how much they pay in taxes.<\/p>\n

Manufactured housing stands to diversify the area\u2019s portfolio.<\/p>\n

\u201cNow is the time to diversify what we are doing economically,\u201d said Powers. \u201cDetroit was told for years that they needed to diversify and didn\u2019t. And, of course, now they\u2019re a Ghost City.\u201d<\/p>\n

Schaefer said the relatively new industry uses all things that go into manufacturing and applies them to housing.<\/p>\n

It\u2019s possibly a part of the solution in solving the affordable housing crisis both in our state and nationally,\u201d he said.<\/p>\n

As it stands, only about 3% of Colorado\u2019s new housing developments are modular, or factory built. Nationwide, it\u2019s 5%.<\/p>\n

Earlier this year, Gov. Jared Polis awarded $38 million of funding \u2013 through Proposition 123 and the Innovative Housing Incentive Program \u2013 to support eight modular housing manufacturers across the state, which will build over 4,700 housing units a year.<\/p>\n

Polis said it\u2019s \u201can important part of our work to increase Colorado\u2019s housing supply and make sure our state has nice housing for every budget.\u201d<\/p>\n

\"A
A Fading West project, Pinon Park, in Norwood. (Courtesy Fading West)<\/span><\/figcaption><\/figure>\n<\/p>

Of that money, Fading West was awarded $2 million and Durango-based Timber Age got $3.8 million.<\/p>\n

Ignacio, where the average age of homes is from the 1950s, recently partnered with Fading West to offer more housing.<\/p>\n

The first phase of the Rock Creek project \u2013 10 units available to residents making under 80% of the area\u2019s median income \u2013 is set to be finished by the end of this year.<\/p>\n

The second phase will add 11 single-family units and be completed sometime next year.<\/p>\n

\u201cWe have a need for teacher housing, for first responder housing,\u201d said Ignacio Town Manager Mark Garcia. \u201cA lot of employees in the region live in New Mexico, Farmington and Aztec area, because it\u2019s affordable and there\u2019s none in our area. This hopefully will open the doors for those employees to live locally.\u201d<\/p>\n

\"Fading
Fading West\u2019s first development, The Farm, located near their factory in Buena Vista. It has 218 units \u2013 some are apartments, others are single-family homes. (Courtesy Fading West)<\/span><\/figcaption><\/figure>\n<\/p>
Opting in on a plan for the future<\/div>\n

Last year, Cortez, Mancos, Dolores, Montezuma County and the Ute Mountain Ute tribe opted in to Proposition 123, which opens the door to grants and low-interest loans to build affordable housing.<\/p>\n

By opting in, they agreed to increase the amount of affordable home units in their area by 3% each year for three consecutive years, according to the city of Cortez\u2019s website<\/a>.<\/p>\n

In Cortez, 3% works out to be about 30 affordable units annually.<\/p>\n

By early to mid-September this year, the Pi\u00f1on Project will start leasing out its one-, two- and three-bedroom apartments at 560 E. Empire St.<\/p>\n

Though it\u2019s not modular housing, Tawi Kaan, the building development, will be for individuals and families with income below 30% of the area\u2019s median income.<\/p>\n

The city\u2019s need for workforce housing was heightened after its population grew 1.5% between 2020 and 2021.<\/p>\n

\u201cIt\u2019s not like the growth in the Front Range, but it was impactful for Cortez,\u201d said Rachael Marchbanks, the city\u2019s director of Community and Economic Development.<\/p>\n

\"Tawi
Tawi Kaan, Pi\u00f1on Project\u2019s affordable housing project, is set to be move-in ready next month. Pi\u00f1on worked closely with the Ute Mountain Ute tribe, and many of the residents will likely be Indigenous people. (Cameryn Cass\/The Journal)<\/span><\/figcaption><\/figure>\n<\/p>

The rental availability rate here is less than 2%.<\/p>\n

A 2023 housing needs assessment found that Cortez needs to increase its supply of housing of all kinds \u2013 low-income and luxury \u2013 because \u201cthe rate of housing production has not kept pace with jobs and population growth.\u201d<\/p>\n

The assessment emphasized a heightened need for folks in the \u201cgap,\u201d who \u201ccannot afford housing at its current construction cost.\u201d<\/p>\n

\u201cThe majority of people in our region make more than enough to qualify for some of the lower-income projects, yet they don\u2019t make enough to put down a down payment and qualify on a mortgage on their own,\u201d said Powers. \u201cAnd that\u2019s the area, that missing middle \u2013 that really needs to be addressed.\u201d<\/p>\n

Builders working on a higher purpose<\/div>\n

Timber Age, another company awarded state money, recently started renting a building off U.S. Highway 160 in Mancos where they are constructing their panelized wood products from local ponderosa pines.<\/p>\n

They\u2019re working with the U.S. Forest Service and get the wood for little cost, as it\u2019s been thinned from forests in the area to prevent wildfires.<\/p>\n

The wood they\u2019re using, when delivered to Aspen Wood Products Inc. down the road, isn\u2019t high quality stuff when it comes in.<\/p>\n

And so they construct cross-laminated timber, which stacks planks of wood in opposing directions with each layer. Once the three layers are glued, it becomes a solid wood product.<\/p>\n

With this stronger product, they build TAMBS \u2013 Timber Age Modular Building Systems \u2013 which are the completed panels that are shipped out and put together on site.<\/p>\n

\"Timber
Timber Age\u2019s first large project, an outdoor kitchen, thanks to a U.S. Forest Service Wood Innovation Grant. (Courtesy Timber Age Systems)<\/span><\/figcaption><\/figure>\n<\/p>

\u201cWhat we\u2019re doing is actually very common in Europe,\u201d said Chris Hamm, the company\u2019s vice president of building systems and engineering.<\/p>\n

When folks in Boulder caught wind of it, they selected Timber Age to build dorm-style farmworker housing, set to be done around November. Previously they were importing cross-laminated timber from Austria.<\/p>\n

The company is looking to build a factory out of their panelized product that could then be replicated and built around the country, specifically out West, where wildfire danger is heightened, and the Forest Service is thinning.<\/p>\n

These areas tend to coincide with rural, lower income communities.<\/p>\n

<\/p>\n

Timber Age hopes to provide housing for under $300 a square foot once they hone their model. In Boulder, prices creep up to $550 a square foot; in Aspen, such costs can reach $1500 a square foot.<\/p>\n

Most of the modular home manufacturing companies started after recognizing a shortage of attainable housing.<\/p>\n

\u201cTo build 24 houses in Norwood the regular way would\u2019ve taken five or seven years because there\u2019s just no one out there to build and it\u2019s cold and there\u2019s short building seasons,\u201d said Schaefer. \u201cWe were able to build 24 homes in less than a year to the point people have already moved in.\u201d<\/p>\n

But are the homes well made?<\/div>\n

More attainable housing stems from these quicker building times and the repetitive, build-in-bulk nature of this style, Schaefer said.<\/p>\n

\u201cWe still build to the highest quality,\u201d he said. \u201cIf the homes are built very poorly and electric bills are through the roof, or whatever the case is, then people can\u2019t afford them.\u201d<\/p>\n

So the homes pass building inspections and green tests. They\u2019re energy efficient, too, Schaefer said.<\/p>\n

\u201cThink about it. Everything is built inside a factory \u2026 the lumber isn\u2019t laying in the snow or sun. They\u2019re really the highest quality houses being built,\u201d Schaefer said.<\/p>\n

At Timber Age, Hamm said the units are set up to be passive homes, cushioned with nearly a foot of insulation. They\u2019re net zero ready, so long as there\u2019s quality windows and electrical installed.<\/p>\n

\u201cWe could have five more [factory-built housing] manufacturers in the area once we create the market,\u201d said Nick Lemmer, a co-founder of Higher Purpose Homes.<\/p>\n

Higher Purpose Homes is a self- and investor-funded modular housing company looking to build a factory in Montezuma County, specifically Mancos, sometime soon.<\/p>\n

Lemmer said affordable housing fosters a kind of close-knit community they felt was dwindling away.<\/p>\n

Schaefer said it won\u2019t be these manufacturers, alone or together, that solve the problem of affordable housing.<\/p>\n

\u201cWe need the municipalities, we need the government, the state government. Everybody needs to work together,\u201d said Schaefer. \u201cThat will be the ultimate way you bring down the cost of housing. It\u2019s not just the factory, it\u2019s not just the guy pouring cement. The local governments need to make smaller lots so you can build denser. If it\u2019s denser, then it\u2019s cheaper. All these kinds of things go into why we are in this mess in the first place.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

9 has a lack of affordable housing. Some think manufactured housing is part of the solution<\/p>\n","protected":false},"author":1,"featured_media":26104,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[28,453,29],"naviga_topic":[],"class_list":["post-26103","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-headlines","tag-housing-and-urban-planning","tag-newsletter"],"acf":[],"author_name":"dh_admin","_links":{"self":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/26103","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/comments?post=26103"}],"version-history":[{"count":1,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/26103\/revisions"}],"predecessor-version":[{"id":79225,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/26103\/revisions\/79225"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/media\/26104"}],"wp:attachment":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/media?parent=26103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/categories?post=26103"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/tags?post=26103"},{"taxonomy":"naviga_topic","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/naviga_topic?post=26103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}