New report shows Colorado's housing shortfall improved, while affordability issues grew
A new report commissioned by Gov. Jared Polis and the Colorado State Demography Office shows Colorado's housing shortfall is improving, but there is still a long way to go.
"The State Demography Office's analysis compares existing housing shortage estimates and offers an estimate with a transparent methodology," said Kate Watkins, the Colorado state demographer, in a press release. "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 and how to better target resources so that they can be most effective."
Key Takeaways
- The housing shortfall for 2023, the most recent year for which data are available, is estimated to be 106,000 units
- The shortage peaked in 2019 at 140,000 units
- To prevent the shortfall from growing, approximately 34,100 new homes would need to be built each year over the next decade based on the latest population projections
- These would need to be owner-or renter-occupied homes, not second or vacation homes
According to the press release, "The report notes that while the housing shortfall has lessened, housing affordability issues have grown. The report notes that recent improvements are largely due to slower population growth and increased housing production. Between 2020 and 2023, Colorado built an average of 43,000 housing units each year, significantly higher than the pace of the previous decade. This surge helped reduce the shortfall by nearly 25 percent in just four years."
"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," Gov. Polis said in the press release. "By expanding housing options, we can lower costs and provide more options for Coloradans to live where we want to live."
The full report is available on the State Demography Office website.