Colorado’s Housing Gap Narrows—But Affordability Slips Further
Cindy Engel
As team co-founder, working with sellers, buyers, and investors for real estate comes easily to Cindy...
As team co-founder, working with sellers, buyers, and investors for real estate comes easily to Cindy...
Colorado’s Housing Gap Narrows—But Affordability Slips Further
Colorado has made headway in shrinking its housing shortfall, yet the cost of securing a home is rising faster than many residents can keep pace.
A new report from the State Demography Office finds the state’s housing deficit down to 106,000 units in 2023, a sharp improvement from the 140,000-home peak in 2019. A surge in construction between 2020 and 2023, averaging 43,000 new homes a year, played a critical role in easing the gap.
But progress has come with a caveat: affordability has worsened. Higher interest rates, escalating construction costs, and slowed building since 2023 have made it tougher for buyers and renters alike.
Looking forward, Colorado must add 34,000 homes annually over the next decade to meet demand—homes intended for residents, not just investors or second-home buyers. Without them, communities risk mounting strains that ripple through jobs, health, and education.
State officials are experimenting with solutions, from streamlined permits and modular housing to AI-powered plan reviews and expanded accessory dwelling options. More than 200 communities are now engaged in shaping their housing futures.
The message is clear: while the numbers show improvement, Colorado’s housing challenge remains urgent. Real solutions will demand sustained collaboration among state and local governments, developers, and communities.
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