Colorado's growing but housing costs and job losses squeeze residents
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Colorado's days as a fast-growing state are over, as soaring housing costs and job losses threaten its competitive edge.
Why it matters: The slowdown is changing Colorado's demographics, economy and politics — and raising questions about the state's future.
- It's also a warning sign that Colorado may be losing its "secret sauce."
What they're saying: "Colorado really remains a competitive state, but we remain middle of the pack, where we used to be … in the Top 10," Hanna Scovill, senior economist at Pacey Nehls, said at last week's annual state Demography Summit.
- "Compared to our peers, we're kind of falling behind in competitiveness."
By the numbers: Eight trends tell the story.
1. Growth's slowing. Colorado added just 23,725 residents in the year ending July 1, 2025, bringing its population to 6,011,146.
- That's less than one-third of the previous year's revised gain of 75,892.
2. Babies outpaced transplants. Births exceeded deaths by more than 20,000, with Colorado recording its most births since 2017.
- Net migration added just 3,000 residents.
3. Uneven growth. Colorado Springs grew 0.5%, adding 2,671 new people — the largest gain among cities.
- Smaller communities (10,000 to 24,999 residents) grew 1.57%.
- El Paso County remains the state's most populous at 758,835, followed by Denver at 737,680.
- Meanwhile, 23 other counties, including Boulder and Jefferson, lost population, as did 129 municipalities.
4. Housing disconnect. Colorado added 36,456 housing units between July 2024 and July 2025, a 1.4% increase that far outpaced population growth.
- Yet nearly 34% of households — about 843,100 — spend more than 30% of their income on housing.
- The strain falls on 49% of renters, compared with 25% of homeowners.
5. Housing shortage. Colorado needs an additional 30,600 homes annually through 2036 to keep pace with expected growth.
- A housing analysis showed the current construction pace is sufficient — but won't resolve the existing housing shortage or affordability problems.
6. Income requirements. Analysts estimate a household needs $153,700 in annual income to afford a median-priced home.
- The gap between median household income and the income needed to buy approached $50,000 in 2026, up from $2,600 in 2015.
- 2014 was the last year a median-income household could purchase a median-priced home without spending more than 30% of its income on housing.
7. Economic warning. Colorado lost 4,898 jobs in 2025, a roughly 0.14% decline even as employment grew nationally.
- It marked the state's first job losses outside a national recession since 2001.
8. Future growth. Economists expect employment to grow 0.6% annually from 2027 to 2050, roughly twice the projected national pace but far below the 2.6% average during the 2010s.
The bottom line: Colorado can build enough housing to accommodate slower growth and still leave residents behind. The challenge is delivering homes people can afford — and that fit an older state's changing needs.