I spoke with Nathan Adams, CEO at redT Homes, who is building a Greener Colorado and is gaining significant traction. Nathan has done an incredible job redefining what buyers in Colorado can expect from a developer and is blazing the path for others to follow.
As an overview here are the top 3 ways Nathan is changing the game:
- Building a Greener Colorado
- Leading the US in LEED Zero
- Update on Denver Housing
Lesson #1: Building a Greener Colorado
For a long time, Nathans team has been sounding the horn that there are better ways to build sustainable and attainably priced housing in Colorado. In 2020 redT decided that they will no longer be buying, selling, or building projects that don’t meet LEED Gold certification or higher. These homes are more affordable, healthy for the end user, and they are better for the environment.
Lesson #2: Leading the US in LEED Zero
RedT just learned about LEED Zero certification 15 months ago. Upon learning there is a higher standard to hold new construction too redT decided it is time to up their game.
It is not possible upon construction being completed to achieve LEED Zero certification. It takes 12 months of occupancy, and the owners give back the energy bills to receive the certification. RedT has seven homes right now being constructed to that are anticipated to hit this certification. Only one home in the entire United States has this certification and RedT is poised to be the second through either homes to achieve this certification.
Lesson #3: Update on Denver Housing
2022 was wild! 3% interest rates, bidding wars, and properties selling on average from 5% to 8% over the list price. Then overnight the interest rates increased to 7.5%. This didn’t just take buyers out of the market it took the sellers out of the market. Potential sellers who recently locked into rates below 4% are not looking to sell.
Recently the rates have dropped just below 6% and that seems to be the magical number where transactions occur. Less than 5,000 homes are currently for sale in the entire 11 county areas surrounding Denver that consist of 3 to 4 million people. The peak of sales in that area was over 13,000 homes in 2010. There is around 1 month of inventory on the market. Historically speaking, 6 months of inventory is considered a balanced market.
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