Colorado’s Housing Crisis Can’t Be Solved by Zoning Alone

For years, zoning reform has been at the center of Colorado’s housing debate. But a new report makes clear that zoning alone won’t fix the state’s affordability crisis. High construction costs, labor shortages, slow permitting, and limited public funding all play a role in driving up prices and limiting supply.

The Colorado’s Housing Affordability Crisis 2025 report, produced by Mile High United Way in partnership with BuildStrong Foundation and McKinsey & Company, surveyed more than 200 housing professionals statewide. Nearly all cited construction costs and labor shortages as key barriers. Ninety-seven percent said building materials are a major challenge, while 91% pointed to the cost and availability of skilled workers. Others emphasized how long, fragmented regulatory processes add months or even years to projects, making them financially unviable.

“Time is everything,” said Pat Hamill, BuildStrong Foundation Chairman and co-chair of the new housing consortium. “When approvals and funding stretch out over 500 days, projects that once made sense can collapse under the delays.”

In March 2025, housing advocates launched the Colorado Housing Consortium, cochaired by Hamill and Colorado Department of Local Affairs Executive Director Maria De Cambra. The group has already grown to about 70 members, including developers, advocacy groups, and public officials. Their mission is to break down silos and coordinate real-world solutions, from modular housing and workforce expansion to streamlined permitting and financing.

Factory-built modular housing, for example, has the potential to cut costs by up to 25%, but differing city codes make it difficult to scale. Expanding apprenticeships could help address the state’s projected shortage of 45,000 construction workers by 2027. And reforming land-use regulations, while still important, must be paired with broader collaboration to truly move the needle.

As McKinsey partner Ryan McCullough put it, “You really got to get everybody in the room together to tackle this, or we’re going to fall farther and farther behind.”

The message is clear: zoning reform is one piece of the puzzle, but solving Colorado’s housing crisis demands coordinated action across sectors, bold innovation, and the political will to move solutions forward.