Colorado ranks dead last for housing competitiveness, according to new report
Colorado's housing market continues to face challenges, as a recent report by the Common Sense Institute reveals that the state ranks last in terms of housing competitiveness nationwide.
This ranking considers various factors, including the housing shortage to population ratio and the affordability of mortgages and rent.
According to the report, Colorado has consistently ranked last in six out of the past seven years when it comes to housing competitiveness. In 2021, the state ranked at No. 50, with Utah taking the last position. These findings highlight the ongoing struggle for Coloradans to find affordable housing options.
One alarming statistic from the report is the increase in the number of hours of work required to afford housing in the state. For instance:
In 2011, it took an average of 44 hours of work at the median wage to afford the mortgage of a median-priced home.
In 2021, that number has nearly doubled to 96 hours.
And it takes 86 hours of work to pay the median rent in Colorado.
The report also highlights a concerning trend in the construction industry.
It notes that fewer condos are being built compared to apartments, with a ratio of 14 apartments for every one condo in the last four years. This is in contrast to the mid-2000s, when there were 1.25 apartments for every one condo. The lack of ‘entry-level’ condo construction exacerbates the shortage of affordable housing options in the state.
While there has been a recent slowdown in people moving to Colorado, the report suggests that the state is still not on track to meet the demand for housing. It emphasizes the need for broad reforms to increase housing supply across the state.
The Common Sense Institute, the organization behind the report, is a think tank focused on free-market economic policies. Their findings shed light on the pressing issues facing Colorado's housing market and call for urgent action to address the housing shortage and improve affordability.