Colorado faces a shortage of over 100,000 residential properties
Colorado is currently grappling with an ongoing housing crisis, particularly for low-income and affordable housing, as highlighted in a recent report by the State Demography Office. The report aims to support state and local governments, housing providers, and community organizations in understanding Colorado's evolving housing needs.
The data presented in the report is for the year 2023, the latest year for which data is available. According to the report, Colorado requires 106,000 housing units to address its current housing needs. This represents a decrease from its 2019 peak, where the state needed 140,000 units.
Between 2020 and 2023, Colorado built an average of 43,000 housing units each year. This surge in housing unit construction helped reduce the shortfall by nearly 25 percent in just four years. However, despite these efforts, home ownership remains financially inaccessible for many in the state.
The report also highlights the need to expand housing options to lower costs and provide more housing options for residents. Colorado Gov. Jared Polis has emphasized this point, stating that increasing housing supply can help decrease rent spikes and help more Coloradans realize the dream of home ownership.
The National Low Income Housing Coalition's 2025 report found that Colorado needs upward of 134,000 more affordable homes just for extremely low-income households. Similarly, the Colorado Housing and Finance Authority (CHFA) proposed in the same report that Colorado needs over 134,000 additional affordable housing units for very low-income residents.
Continued collaboration among state and local governments, developers, and community organizations will be essential to ensuring that every Coloradan has access to safe, secure, and stable housing. The report from the State Demography Office offers a transparent methodology for estimating Colorado's housing needs, providing objective, reliable data.
The report also receives support from the recent report from the Pew Research Center, which underscores the need for increased housing supply to address Colorado's housing crisis. Colorado is one of just 12 states that has reached pre-COVID housing inventory levels.
However, the current median sale price for a home in Colorado is nearly $600,000, making it one of the most expensive housing markets in the nation. To prevent the housing shortage from growing, approximately 34,100 new homes need to be built each year over the next decade, according to the report.
Colorado Gov. Jared Polis has stated that more needs to be done to address rising housing costs. He has reiterated the importance of increasing housing supply, particularly in low-income neighborhoods, as it has a direct correlation with decreasing rent prices, as previously reported.
In conclusion, the housing crisis in Colorado is a complex issue that requires a collaborative effort from various stakeholders. By understanding the evolving housing needs and focusing on increasing the supply of affordable housing, Colorado can work towards ensuring that every resident has access to safe, secure, and stable housing.
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