Colorado Ranks as 8th Least Affordable State for Housing, Report Reveals
A recent report from the National Low Income Housing Coalition highlights the growing housing crisis in Colorado, ranking it as the 8th least affordable state in the nation. In cities like Denver, where the minimum wage has risen to over $18 per hour, the affordability gap becomes stark. At this income level, a worker might afford rent between $750 to $800 per month, far below the actual costs.
The Income Gap in Colorado’s Rental Market
According to data from Apartmentlist.com, the average cost of a one-bedroom apartment in Colorado ranges from $1,250 to $1,500 per month. In Denver, these costs soar to between $1,500 and $1,700. To comfortably afford this, an individual would need to earn an hourly wage of approximately $28 to $29.
Unaffordable Housing Leads to High Vacancy Rates
The Colorado Coalition for the Homeless reports that over 20,000 luxury and market-rate housing units in the Denver metro area remain vacant, primarily because potential tenants cannot afford the high rents. The NLIHC data further underscores this issue, revealing that Colorado’s housing wage—the hourly rate needed to afford a two-bedroom rental home—ranks as the 8th highest in the country. To cover the cost of a two-bedroom rental, an average worker would need to earn $37 per hour and work roughly 104 hours a week.
For those grappling with Colorado’s housing market, these statistics are a stark reminder of the challenges ahead. To see the full report and state snapshot, visit the National Low Income Housing Coalition’s website.
