A new report has determined that Colorado’s housing inventory shortfall declined since its peak six years ago, but the state needs to ratchet up its residential construction to keep the shortfall from growing again.
The report, issued by the office of Gov. Jared Polis and the State Demography Office, determined there was a housing shortfall of 106,000 units as of 2023, the most recent year for which data are available. This is down from the 2019 peak of a 140,000-unit shortfall.
To prevent the shortfall from growing, the report recommended the creation of approximately 34,100 new homes per year over the next decade, based on the latest population projections – the state built an average of 43,000 housing units each year from 2020 to 2030, which helped reduce the shortfall. The report added the new construction would need to be owner-or renter-occupied homes, not second or vacation homes.
“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. “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.”
Photo: J. Stephen Conn / Flickr Creative Commons
