The Common Sense Institute (CSI) today released a study on housing affordability in Colorado Springs. It found that increased demand and lagging development have created a significant housing shortage and a major decline in affordability. According to the report, the city has a shortage of up to 27,360 housing units.
Mayor Yemi released the following statement on the report:
“I’m grateful that the Common Sense Institute took such an in-depth look at housing in our community. It’s important to have evidence-based data, and I am committed to implementing evidence-based solutions to improve the trajectory of our housing landscape. That is why Housing Solutions is one of my five strategic priority areas.
As we celebrate the recent announcement of Colorado Springs being named the No. 3 Best Place to Live in the United States by U.S. News and World Report, our work isn’t finished. Colorado Springs also ranked No. 35 in the U.S. News housing affordability index. As housing and rent prices have increased, incomes have not kept pace. Furthermore, the shortage of housing has exacerbated the problem. Not surprisingly, this has left a gap that makes it challenging for individuals and families to find housing they can afford. Housing costs are forcing people into impossible choices and putting the American Dream of homeownership out of reach for too many. Because of this, we are at an increased risk of losing the very people who make our community thrive – teachers, nurses and small business owners, to name a few.
Colorado Springs is predicted to keep growing as we create and attract more jobs and remain an attractive place for college grads, families looking to settle down, and retirees and veterans looking for a safe and beautiful community. We must make the right policy choices to ensure we are planning for that growth, continue fostering community partnerships, and secure sustainable funding instead of letting this situation worsen. Bottom line, we must increase the amount and variety of housing options so that residents can find and choose housing that is right for them.”
Highlights from the Common Sense Institute’s Colorado Springs Housing Affordability Study
- The housing supply is not meeting the demand of those seeking housing in Colorado Springs. In 2023, the housing deficit is in the range of 16,554 to 27,360 units.
- To meet population growth by 2028 and close the housing deficit, between 32,000 and 43,000 housing units will need to be built.
- Due to elevated housing prices and rising interest rates, the affordability of purchasing a home in Colorado Springs is at an all-time low.
- Mortgage and interest rates have risen 82.6% in the last decade, vastly outpacing income growth.
- Household incomes have not kept pace with rising housing costs. Between 2015 and 2024, the hours of work needed to cover the median mortgage payment doubled from 43 to 86 hours.
- Current housing permit levels are significantly below what's needed to address the unit deficit.
The full CSI report is available at: CommonSenseInstituteCo.org/colorado-springs-housing-affordability-report-2024/
To view specific actions underway to increase understanding and advance housing solutions, visit ColoradoSprings.gov/2024strategicdoing. Among these actions is an upcoming Housing Needs Assessment to be conducted by the City this year that will collect further information about the specific housing needs in Colorado Springs. This assessment, plus the CSI report, will help inform the development and implementation of housing solutions.