Colorado Just Made It Easier to Build Housing Where People Actually Need It
Colorado is grappling with a shortage of affordable housing, and families are increasingly being priced out of the communities where they live, study, and work.
In 2023 – the most recent year with available data – the state faced an estimated shortfall of approximately 106,000 housing units.
Colorado ranks second worst nationally for housing affordability.
Nearly 80% of low-income families spend more than 30% of their income on housing and utilities.
These stats feel all too real for residents struggling to stay afloat amidst skyrocketing costs: the cost of living and the lack of affordable housing are two of the top three issues Colorado residents say they want lawmakers to address.
Colorado has a process problem, not a lack of demand.
It’s not that Coloradans don’t want to build. Even when land is available, housing projects are often delayed or derailed by restrictive zoning and approval processes. Meanwhile, underutilized land sits idle — often right in the middle of the communities that need housing the most.
The Colorado HOME Act
On March 25, Governor Jared Polis signed the Housing Options Made Easier (HOME) Act into law, taking aim at one of the state’s most persistent barriers to housing production: restrictive zoning that limits where housing – especially workforce housing – can be built.
The law:
Allows public schools, universities, nonprofits and other community institutions to build housing on land they already own – even if it's not zoned for residential use.
Requires local governments with populations over 2,000 to permit these developments starting in 2028.
Maintains key guardrails – meaning properties still need to go through an approval process that allows local input on utility, transportation, and public safety standards.
Why it matters: By shifting public-hearing processes to administrative approvals, state officials estimate new housing could go up 28% faster. That's more homes on the market — and in locations closer to jobs, schools and public transit.
This is a huge step forward for Colorado. Lowering housing costs is one of the most direct things lawmakers can do for working families.
When teachers can't afford to live near the schools where they teach, communities pay a price.
When service workers commute long distances because nearby rents are out of reach, families pay a price.
When employers struggle to attract talent because housing is unavailable or unaffordable, local economies pay a price.
A pragmatic step forward, not a silver bullet.
Colorado’s law is a pragmatic, forward-looking policy that removes barriers critical to increasing housing supply by empowering community institutions that want to be part of the solution.
No single policy will solve the housing crisis. But Colorado’s approach – reducing unnecessary constraints and enabling local partners to build where it makes sense – is a practical starting point, and one other states would be wise to add to their own playbook.