DENVER ~ A recent study conducted by the National Zoning Atlas has shed light on the impact of local zoning ordinances on housing options and affordability in Colorado. The analysis, released earlier this week, revealed that these restrictions have hindered the construction of affordable housing and limited the variety of housing options available in the state.

According to Governor Jared Polis, Colorado has been at the forefront of implementing housing legislation that aims to cut through bureaucratic red tape and provide more affordable housing options for its residents. However, he also acknowledged that there is still more work to be done in order to prevent government interference in meeting the housing needs of Coloradans.

Since taking office, Governor Polis has signed several laws aimed at breaking down barriers to housing, including those related to transit-oriented communities, accessory dwelling units, discriminatory occupancy limits, and costly parking requirements. This year, he and the General Assembly continued this work by passing new legislation addressing construction defects and promoting smart-stair buildings and modular housing.

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The study found several key takeaways that highlight the current state of housing in Colorado. Firstly, it revealed that as of 2023, Colorado had the 5th-highest home prices and 3rd-highest rents in the country. Additionally, only 3% of residential land in the state allows for multi-unit housing to be built. Furthermore, one in five jurisdictions with zoning do not permit any multi-unit housing to be built by right.

The study also highlighted how costly parking mandates are imposed on 85% of residentially zoned land in Colorado. This not only drives up housing costs but also deters development. Moreover, it was found that a majority (86%) of residentially zoned land requires a minimum lot size of at least 2 acres for a single home.

Another concerning finding was that accessory dwelling units are currently banned on 37% of land that allows for single-unit homes. However, there is hope for change as HB24-1152, which legalizes accessory dwelling units in many communities, will come into effect on July 1, 2025.

Governor Polis emphasized the importance of this study in showcasing the need for data-driven approaches to housing and the detrimental effects of unnecessary zoning restrictions. He hopes that this will encourage further action to be taken to address these issues and provide more affordable housing options for Coloradans.

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