Colorado’s Housing Affordability Crisis in Numbers
Having the freedom to afford a home near where you work, go to school, and make your life is at the heart of every hardworking Coloradan’s economic security, opportunity, and well-being. This is the Colorado way of life, and many people living in the state are finding it increasingly out of reach. Colorado’s severe housing shortage is hurting families and communities in every corner of the state with the cost of housing far outpacing wage growth. This report shares data about the current state of housing in Colorado, what we can expect if nothing changes, and policy solutions that would help mitigate this housing crisis.
Scroll down for a variety of data points across Colorado on the housing crisis.
Second Highest Housing Costs in the West
Whether you’re a homeowner or renter in Colorado, you’re likely struggling with housing costs.
The average Coloradan can no longer afford to buy a home. A typical home in Colorado costs nearly $520,000, making Colorado the Western state with the second highest housing costs, second only to California. The cost of a home has increased nearly 150 percent since 2010, when a typical home cost about $216,000. In 2011, the average Coloradan could buy a home for less than 4 times their yearly salary. Today, they would need to pay 6 times their salary for the same home.
As a result of these inflated housing costs, for example, teachers can no longer afford to live near where they teach. In 2005, the average teacher in Colorado earned just under $45,000 and could buy a typical home for 5 times their salary. In 2023, that same teacher earns about $63,000, but it would cost them over 8 ¼ times their salary to buy a typical home. Indeed, only Coloradans working in the highest-paid professions are able to afford to buy a typical Colorado home.
Renters are also struggling with high housing costs. After adjusting for inflation, rents have increased by 41 percent since 2011, while income has increased by only 24 percent. As a result, half of all renters in Colorado spend over 30 percent of their income on rent, meaning they are considered “cost-burdened” and have less money for other essentials, like food and transportation.
Housing supply no longer meets demand; people moving further from where they work
With population growth outpacing housing development, the supply of housing in Colorado no longer matches demand, and the lack of available housing drives up housing costs. The severe housing shortage in Colorado is hurting families and communities in every corner of the state and is the number one issue facing Colorado families.
Coloradans are moving out of cities to relatively more affordable suburbs and, as a result, spend more time commuting. Longer commutes mean more cars on the road and more traffic. Between 2010 and 2022, three-quarters of all legislative districts in Colorado saw an increase in the share of people commuting over 30 minutes each way. In 2022, there were 238,000 more cars on the road than there were in 2010, representing a 15-percent increase in cars during this time. Longer commute times have been associated with declining quality of life and with stress among commuters, and having more cars on the road increases climate emissions. If nothing changes, the housing shortage will continue to drive up housing costs and increase commute times into the future.
How Did We Get Here, and What Will Happen if Nothing Changes?
For decades, people have moved to Colorado for its booming economy and quality of life, but development has not kept pace with in-migration. Due to the Great Recession, building slowed between 2007 and 2018. Recently, the COVID pandemic and shift to working from home have increased demand for housing even further. This combination of low supply and high demand has made housing increasingly unaffordable for most Coloradans. As a result, Coloradans believe that even if the housing crisis is not affecting them today, it will tomorrow or in the future. Families worry about their kids not being able to afford a home and being forced to move out of state, their aging parents being unable to downsize, and even their own ability to stay in their home or move for work.
The housing shortage will continue to be a serious problem until our leaders take action. In the absence of new housing policy, purchasing a home will continue to be unaffordable for all but high-income earners. Cities will remain expensive, and commute times will remain long, with more cars on the road, more traffic, and more climate emissions.
In the absence of housing policy, the housing crisis will likely deepen. According to forecasts, in 2030 the price of a typical Colorado home will be over $760,000, representing a nearly 45-percent increase in cost from today. In 2030, by comparison, the price of a typical home in the United States will be around $380,000, or just under half the cost of a Colorado home. Colorado will be too expensive for regular people, and the Colorado way of life will remain out of reach for the vast majority of the population.
