Colorado Housing Crisis

National Housing Shortage Overview

The U.S. faces a critical housing shortage of approximately 4.5 million homes. This deficit is driven by factors such as high construction costs, restrictive zoning laws, and insufficient new housing developments.

Rising costs have severely impacted renters, with 50% of all renters spending over 30% of their income on housing, and 12.1 million households spending more than 50% of their income. Rent increases have consistently outpaced wage growth, leaving renters, especially those earning less than $30,000, severely cost-burdened.

Efforts to address the shortage include exploring modular construction and repurposing spaces, but policy changes like zoning reform and increased federal assistance are needed for substantial impact.

Housing Crisis in Colorado

Colorado's housing market reflects the national trend, with a significant shortfall and declining affordability. The state is currently tens of thousands of housing units short, with the Denver metro area alone showing a deficit of 45,000 to 115,000 units, depending on projections. Other counties such as Adams, Arapahoe, and El Paso exhibit similar shortages.

The shortage is particularly severe for extremely low-income households, with 76% spending over half their income on rent. Across Colorado, there is a deficit of nearly 120,000 affordable units for these families. Since 2013, housing affordability has declined significantly, with some areas, like Weld County, seeing a 141% decrease.

Governor Jared Polis has acknowledged these issues, issuing executive orders to expedite affordable housing developments and streamline approval processes.

Colorado Springs and Pueblo: Localized Challenges

Colorado Springs

Colorado Springs has an estimated housing deficit of 16,554 to 27,360 units as of 2023. To accommodate population growth and meet housing needs by 2028, the city requires between 32,000 and 43,000 additional units. Rising mortgage rates, which have surged by 82.6% in the past decade, have further worsened affordability, with the hours needed to cover the median mortgage payment doubling.

Despite an increase in building permits, the current levels are insufficient to bridge the housing gap. The city's attractive lifestyle and job growth continue to draw new residents, increasing demand. To prevent further affordability declines and support the essential workforce, city officials emphasize the need for strategic policy choices, increased permit issuance, and sustainable funding.

Pueblo

In Pueblo, the housing shortage is a barrier to the city's economic growth and revival efforts, especially in sectors like renewable energy and manufacturing. The lack of affordable housing affects both local businesses and workers, making it difficult for the city to attract and retain talent. Affordability in Pueblo has decreased by 127% since 2013, mirroring trends in other parts of the state.

Our Role in Addressing the Crisis

At Spirit Builders, we recognize the urgent need for innovative housing solutions. Our modular construction methods and efficient designs aim to contribute to alleviating the housing shortage by providing high-quality, affordable homes more quickly and cost-effectively than traditional construction methods.

We are committed to working with local communities, policymakers, and other stakeholders to be part of the solution to Colorado's housing crisis. Through our designs and construction practices, we strive to make homeownership more accessible and contribute to the development of sustainable, thriving communities across the state.