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‘Colorado’s Housing Affordability Crisis 2025’ Report Offers Six Solutions to Statewide Crisis
DENVER – Fifty-one percent of renters and 21% of homeowners in Colorado are cost-burdened, paying more than 30% of their income on housing, according to “Colorado’s Housing Affordability Crisis 2025,” a groundbreaking Mile High United Way report done in partnership with BuildStrong Foundation and McKinsey & Company.
The report details that even when considering bills passed during the 2025 state legislative session, Colorado is unable to build housing efficiently, especially units for households earning less than 50% of the area median income. Overall, the state is facing a housing shortfall of 162,000 rental units with rents below $1,100 and a shortfall of 80,000 owner-occupied homes priced between $150,000 and $500,000. For renters, that shortfall could grow to 257,000 units by 2035.
“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 Mile High United Way President and CEO Christina Benero. “Fortunately, our partners at BuildStrong Foundation and McKinsey & Company have identified solutions that will help us reverse these trends, so everyone in Colorado may have the opportunity for safe, stable, affordable housing.”
Researchers identified the challenges preventing the creation of more units and analyzed more than 40 potential solutions from communities across the nation.
“We know the housing crisis in Colorado is complex,” said Pat Hamill, chairman of BuildStrong Foundation and former CEO of Oakwood Homes. “We also know that additional public funding isn’t an effective long-term solution. We need action and collaboration from many stakeholders across sectors to promise that our way of life in Colorado is available to all renters and homeowners for generations to come.”
The report focuses on six potential solutions:
- Improving plan review and permitting speeds to lower pre-construction costs and make development more efficient.
- Enabling innovative construction approaches, including pre-approved accessory dwelling units and modular home models to further streamline the approval process.
- Optimizing funding and expanding financing by developing innovative financing options and coordinating funding schedules across agencies, including Colorado Housing and Finance Authority, the Colorado Division of Housing and the Colorado Office of Economic Development and International Trade.
- Reforming land-use regulations that restrict the supply of affordable housing despite high demand.
- Strengthening the construction workforce by expanding apprenticeship programs and job placement efforts to combat an estimated 45,000-worker deficit projected by 2027.
- Expanding financing tools to increase homeownership to assist more homeowners in accessing low-interest mortgages and down-payment assistance.
“We hope this report motivates Coloradans to come together for the future of our state,” said Chris Musso, managing partner of the McKinsey & Company Denver office. “With targeted and sustained interventions, we can solve this crisis and tackle the housing shortage.”
The “Colorado’s Housing Affordability Crisis 2025” report represents the collaboration of several organizations, including Mile High United Way, BuildStrong Foundation, McKinsey & Company, Gary Community Ventures, Housing Colorado and the Colorado Department of Local Affairs.
To access the full report, visit here.
About Mile High United Way
Working side-by-side with the community, Mile High United Way takes on critical human services issues facing our seven-county footprint, including the Metro Denver, Boulder and Broomfield communities. Our united approach changes the odds for all children, families, and individuals in our community, so that all have the opportunity to succeed. Learn more at unitedwaydenver.org and follow us on social media @UnitedWayDenver.
