New Report Outlines Six Solutions to Colorado’s Housing Crisis
Colorado’s housing affordability crisis has reached a critical point. According to a new report from Mile High United Way, BuildStrong Foundation, and McKinsey & Company, 51% of renters and 21% of homeowners are cost-burdened, meaning they spend more than 30% of their income on housing. The state faces a shortfall of more than 240,000 affordable homes, and without urgent action, the gap could widen to 257,000 units by 2035.
The Colorado’s Housing Affordability Crisis 2025 report, built on surveys with more than 200 stakeholders across the state, goes beyond numbers. It outlines six key solutions, drawing on lessons from Colorado communities and beyond:
Improve permitting and plan review: Delays often drive up costs before construction even begins. The report highlights new technology, including AI tools and shared digital platforms, that could streamline approvals and cut pre-construction expenses.
Enable innovative construction methods: Modular housing and pre-approved accessory dwelling units can deliver homes faster and at lower costs. Colorado has already seen this approach succeed, including modular builds after the Marshall Fire.
Optimize funding and financing: Aligning funding schedules across agencies like the Colorado Housing and Finance Authority and Division of Housing could prevent project stalls caused by fragmented timelines.
Reform restrictive land-use rules: With more than 150 municipalities each having unique zoning codes, developers often face costly roadblocks. Updating density and height limits could open the door to more affordable units.
Strengthen the construction workforce: Colorado is projected to face a shortage of 45,000 workers by 2027. Expanding apprenticeships and placement programs is key to keeping projects on track.
Expand homeownership opportunities: More tools for down payment assistance and low-interest mortgages can help families access affordable homeownership.
“The lack of housing for Colorado’s essential workers, including educators, healthcare professionals and first responders, is deeply concerning for the future of our state,” said Christina Benero, President and CEO of Mile High United Way. “Fortunately, our partners at BuildStrong Foundation and McKinsey & Company have identified solutions that will help us reverse these trends.”
BuildStrong’s Katie Colton added that the solutions require collaboration and innovation: “When you have 150 or more municipalities with different zoning codes, it’s really hard for developers, especially nonprofits, to build. If we looked at density and zoning with a statewide lens, we could make real progress.”
The report makes clear that no single fix will solve the crisis. Instead, success depends on coordinated action across sectors, from policymakers to builders to nonprofits. As Pat Hamill, Chairman of BuildStrong Foundation, emphasized, “We know additional public funding isn’t a long-term solution. We need action and collaboration from many stakeholders to ensure our way of life in Colorado remains accessible for future generations.”
