By Tess McShane, Special Projects Lead
Colorado continues to rank amongst the most expensive states for home buying costs. According to both Redfin and Bankrate,Colorado currently ranks as the 4th most expensive state for median home prices nationwide, amplifying the state’s housing affordability crisis seen by communities across the state. According to the Common Sense Institute’s Free Enterprise Competitiveness Housing Index, Colorado currently ranks 50th in competitiveness for housing relative to 49 states and the District of Columbia. This staggeringly low ranking reflects the result of high housing costs, reduced accessibility, and persistent regulatory tensions. Local business leaders continue to see how housing affordability impacts talent recruitment and retention and success of their business. Colorado’s challenges with housing affordability demonstrates the need for innovative solutions and strategic action.
The Common Sense Institute (CSI) has recently published their Denver-Metro Area Housing Affordability Report. Using data as recent as May 2025, this report analyzes trends and housing affordability and explores deficits and surpluses in housing units in twelve counties across the state. The report includes the “Homebuyer Misery Index,” developed by Common Sense Institute, captures the impacts of housing prices and mortgage rates on the affordability of purchasing a new home. The Homebuyer Misery Index rose in all counties analyzed at the end of 2024.
Key Findings of the Report:
- The Homebuyer Misery Index rose in all counties at the end of 2024/beginning of 2025. Home prices and mortgage rates remained nearing historic highs in this timeframe.
- The hours of work needed to afford a mortgage at the average wage rose 94% in the Denver-Metro area over a 10-year time period (2015-2025), up from 50 hours to 97 hours per month.
- The Denver-metro area faces a housing unit deficit between 64,000 to 135,000
- While Colorado has passed several housing affordability bills since 2024, regulatory bottlenecks and zoning regulations have limited progress.
- In 2024, 53% of Denver-metro housing permits issued were for single-family homes, while Adams and Jefferson Counties skewed heavily towards single-family units at 85.1% and 79.5% respectively.
Learn more and read the full report here.
As mentioned, this report looked at housing affordability at the county-level, including in Jefferson and Adams counties. Jefferson County ranks in the top two in both Home Price and the Homebuyer Misery Index, which captures the impact of housing prices and mortgage rates on the affordability of purchasing a new home behind Boulder County. County-level data is shown in the graphics below.
The Greater Arvada Chamber’s B.O.L.D. 2026 Initiative includes Housing as local employers continue to see housing affordability and availability as a barrier to recruiting and retaining top talent. The B.O.L.D. 2026 Housing goal seeks to ensure access to income-aligned housing so that workers can attain housing within reasonable proximity to their jobs. The initiative convenes business leaders, housing partners, and community leaders across Jefferson and Adams counties to explore actionable solutions for businesses and their workforce. Learn more about the B.O.L.D. 2026 Housing Initiative and resources and programs for employers.
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