Colorado is grappling with a housing shortage of 106,000 units, according to new data from the State Demography Office. While the figure has dropped from the 2019 peak of 140,000, state leaders warn the crisis is far from over. Governor Jared Polis emphasized that expanding housing options remains essential to lowering costs and keeping homeownership within reach for Coloradans.
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Report Reveals Housing Gap
The State Demography Office’s latest analysis shows Colorado still needs more than 100,000 housing units to meet demand. The shortage figure is based on 2023 data, the most recent available. Officials say the state must build roughly 34,100 new homes annually over the next decade to prevent the gap from widening further.
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Governor’s Housing Commitment
Governor Jared Polis responded to the findings by stressing the urgency of the problem. “We are fighting to lower housing costs and ensure that every Coloradan can realize the dream of becoming a homeowner, but more work needs to be done,” he said. Polis added that expanding housing supply is key to affordability and giving residents more options on where they live.
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Methodology and Findings
State Demographer Kate Watkins explained the importance of transparent data in shaping housing policy. “By providing objective, reliable data, the analysis aims to support state and local governments, housing providers, and community organizations in understanding the evolution of Colorado’s housing needs,” she said. The study compared existing shortages and projected housing demand using population growth estimates.
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Progress in Construction Rates
Between 2020 and 2023, Colorado built an average of 43,000 units per year, significantly higher than the pace of the previous decade. This accelerated construction helped reduce the state’s housing shortfall by nearly 25 percent in four years. The report noted that continued collaboration among governments, developers, and community groups will be crucial to sustaining this progress.
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Impact on Affordability
The housing crisis has hit low-income families especially hard. A Pew Research Center report found that boosting supply in low-income areas directly lowers rent prices. Polis echoed this sentiment last month, saying, “It is not rocket science that by increasing housing supply we can decrease rent spikes, and help more Coloradans realize the dream of home ownership.”
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Housing Market Challenges
Despite improvements in supply, homeownership remains financially unattainable for many. Colorado currently ranks among the nation’s most expensive markets, with the median home price nearing $600,000. The report acknowledged that while the state is one of just 12 to return to pre-pandemic housing inventory levels, affordability remains a pressing concern.