Colorado’s new progressive housing policies will strain neighborhoods

The people of Colorado are facing an affordability crisis. Recent CNBC business rankings show a decline in our state’s economic health, particularly in the cost of housing and doing business. Colorado’s cost of living ranking has plummeted to 46th in the nation, earning a dismal ‘F’ grade. Essential expenses such as housing, healthcare, and everyday goods are increasingly unaffordable.

The progressive left, which has enjoyed complete political control of Colorado’s government for the last six years, has exacerbated these challenges, creating massive uncertainty and costs for Coloradans and businesses alike. Several critical pieces of legislation aimed at solving the housing crisis will do more harm than good for Colorado communities.

“Housing in Transit-Oriented Communities” (House Bill 1313) is a prime example of the heavy-handed approach taken by the ruling left. This law requires communities served by frequent mass transit, such as RTD’s rail lines or bus rapid transit lines, to drastically increase housing density by December 31, 2026.

For example, certain parts of Greenwood Village could be required under the new law to double the allowable housing density from 20 units per acre to 40 units per acre in just 29 months. This coercive approach breaks down cooperation with local leaders and their unique communities. One-size-fits-all mandates also harm the individual character of municipalities and could even artificially create higher construction costs as zoning changes allow neighborhoods to quickly be overhauled by developers.

Adding to this strain are the “Prohibit Residential Occupancy Limits” law (House Bill 1007) and “Minimum Parking Requirements” (House Bill 1304). These laws prevent local governments from managing occupancy limits in residential housing and prohibit local governments from being able to require sufficient parking space for residential areas.

Unfortunately, as population density increases but available parking shrinks, significant safety hazards emerge. Neighborhoods become congested with cars, blocking sidewalks and making crosswalks challenging to use. Pedestrians, children, and those who cannot rely on public transportation will suffer. Emergency vehicles will have a harder time navigating residential areas, and higher population density stresses fire prevention infrastructure.

Historically, occupancy limits and parking have long been in place to ensure the health and safety of residents and protect the quality of neighborhoods. Older homes may suffer from structural, electrical, and sewage overloading. Fort Collins, for example, has enforced occupancy limits since the 1960s to maintain safety standards, protect neighborhood character, and ensure critical infrastructure is not over-stressed.

Mandating that municipalities rapidly increase housing density will not solve housing affordability.

An alternative solution is to increase the supply of for-sale affordable homes like condominiums. Because condominiums can be purchased at a lower price than single-family homes, they form a critical entry point into the homeownership market and allow people to gain equity instead of merely paying rent.

Unfortunately, condo inventory in Colorado is near historic lows. The current regulatory landscape in Colorado has made it excessively expensive to get insurance coverage on new condo construction — three times more expensive than other housing options. This deters new condo construction, stifling the market and limiting affordable housing options for entry-level buyers. Without an affordable ownership option that allows a person to build equity, many people are trapped in an endless cycle of renting.