Report shows Colorado Springs has housing shortage
(COLORADO SPRINGS) — The Common Sense Institute (CSI) released a study on Wednesday, May 22 showing a significant housing shortage and a major decline in affordability in Colorado Springs.
The report 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.
“I’m grateful that the Common Sense Institute took such an in-depth look at housing in our community,” said Mayor Yemi Mobolade in a statement about the report. “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.”
The report highlights that the city has gained an estimated 117,000 new residents since 2005. Over the same period, the average home price rose from $218,707 to $449,123, as of February 2024.
Some key findings of the study state that the housing deficit is in the range of 16,554 to 27, 360. To meet population growth by 2028 and close the housing deficit, between 32,000 and 43,000 housing units will need to be built.
New law legalizes ADUs, aims to lower housing costs
Due to the elevated prices, the affordability of a home in Colorado Springs is at an all-time low. The cost of purchasing a home has increased by 82.6%, a large part of that increase has occurred over the last three years.
Household incomes have also not been able to keep pace with rising housing costs. Between February 2015 and February 2024, the average hourly wage increased 38% from $24.84 to $29. Due to the rapidly increasing housing costs, the report states the number of hours of work required to cover the median monthly mortgage payment increased from 43 hours to 86, a 100% increase.
“Housing costs are forcing people into impossible choices and putting the American Dream of homeownership out of reach for too many,” the statement said. “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.”
In order to close the housing deficit by 2028 and meet the demand for housing supply deficit by 2028, 6,403 to 8,564 housing unit permits need to be issued per year.
Colorado Springs ranked third best place to live
“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,” said Mayor Mobolade. “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.”
Currently, the city has developed a 2024 Strategic Doing Framework. The framework is meant to prioritize public safety, infrastructure, housing solutions, economic vitality, and community activation.
Housing solutions include improving housing affordability, pursuing innovative housing solutions, and stimulating the removal of barriers for affordable and attainable housing development.
The city will collect further information about specific housing needs in Colorado Springs with a Housing Needs Assessment later this year. This assessment, and the CSI report, will help inform the development and implementation of housing solutions.
Copyright 2024 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
For the latest news, weather, sports, and streaming video, head to FOX21 News Colorado.
