The region’s long-awaited Housing Need Assessment was released in early December and local housing advocates, along with many of our citizens, are now poring through the 314-page report to better understand the diverse need for housing in Colorado Springs and El Paso
County.

As expected, this report is chock full of data that supports the need for significant housing development throughout the region. At a high level, the report finds that Colorado Springs has a deficit of 27,000 homes. This
represents the difference between the number of households or families living in the city and the number of housing units available for rent or homeownership. It also includes several other data points that together add to the overall housing deficit throughout the city.

To be clear, this number doesn’t mean that 27,000 residents or families do not have housing or are homeless. It means that many individuals and families are paying for housing beyond their financial means, living with family or friends, or commuting to work from outside the city, all because we are not
building enough homes at prices they can afford.

According to the Colorado State Demographer, Colorado Springs has 199,504 households and 207,078 housing/dwelling units as of 2024. Ideally a city should have 10% more dwelling units than it does households, allowing for a fluid and efficient housing market and supply. Using this formula, Colorado Springs needs 219,454 homes, creating a housing deficit of 12,376 homes.
This simple and straightforward formula indicates a significant housing deficit in our region.

When we add in the families that are financially burdened by high housing costs, living with friends or family, or living outside the city, the amount of needed housing, according to the housing needs assessment, increases to around 27,000 homes.

Many will read this and quickly dismiss this estimated housing deficit because they see for themselves the high number of homes currently on the market or the high number of apartment properties that have been built over the past few years. That is an understandable reaction. This is why we must further dive into the data to better understand our current and future housing
needs.

According to the Pikes Peak Association of Realtors, Colorado Springs sold 837 homes in November, at a median home price of $491,990. This price is down from an all-time high in August of $500,000, and is over $60,000 higher than the national median home price. What is concerning is that when we consider the breakdown of incomes within the region, only around
41% of residents can afford to purchase a home at this median price, indicating a deficit of lower-priced homes that are affordable to lower-income families.

Further, according to Apartment Trends, the average rental price for a Colorado Springs one-bedroom apartment clocked in at $1,433/month at the end of the third quarter. While we have all noticed that Colorado Springs has been building more rental housing, this growth has only slightly reduced rental prices, and this average rent is affordable for only 31% of our residents, again creating a significant rental housing deficit for lower-income residents.

However we slice the data within the housing needs assessment, we know that while builders continue to construct homes, they are not building enough housing for residents at all income levels, especially lower-income levels, where residents are priced out of not only the neighborhood in which they’d like to live, but often the entire city. This creates a trickle-down
effect of increased transportation costs, less time spent with family, and a lower quality of life.

While we can and should continue to debate the outcomes within the new housing needs assessment, we should ideally do this with grace: grace for our military families who want to invest in our community but can’t afford to own a home; grace for the young adults who grew up here and want to remain in their hometown but can’t find affordable housing; and grace for our
health care workers, service industry workers and others who drive 30-45 minutes to and from work each day or continue to live with family members, because that is where they can afford to live and build their lives.

With these residents in mind, let’s encourage our decision-makers to modify land-use policies to allow the development of a variety of housing types within our existing neighborhoods. These housing options will make our neighborhoods more affordable for our military and young families, which will, in turn build a strong economic future for our region.

Jill Gaebler is executive director of the Pikes Peak Housing Network.