Investments in affordable housing are a net gain for communities and households statewide

A study from the nonpartisan research group Colorado Futures Center reveals that annually, the development and preservation of affordable housing in Colorado creates more than 14,000 jobs, generates more than $2 billion in economic activity and returns nearly $80 million in tax revenue to the state. The study covered the most recent period for which data was available – 2018 to 2023.
Over that six-year period, private and public sources invested $7.5 billion in subsidized housing in Colorado, building and preserving 30,174 homes statewide. Investments in affordable housing generated substantial economic activity, growing the state’s economy by approximately 0.5%, with an average of:

• $2.66 billion in annual economic output

• $859 million in annual household earnings

• 14,275 new, full- and part-time jobs annually

• $53.3 million in individual income-tax revenue annually

• $26.6 million in sales-tax revenue annually

Colorado Futures Center research confirms that jobs, earnings and economic activity resulting from affordable housing strengthen Colorado’s evolving economy at every level. The study relied on the most recent available data from the Colorado Housing and Finance Authority, the Colorado Division of Housing, and economic modeling from the U.S. Bureau of Economic Analysis. Urban Land Conservancy (ULC) commissioned the study, which was funded by the Colorado Health Foundation.

“A common misconception about subsidized housing is that it drains public resources without giving anything back to the broader community,” said Aaron Miripol, ULC president and CEO. “But data shows that affordable housing is not a net cost to Colorado’s economy; it is a contributor.”

Metro Denver captured the largest share of investment in the state. Just over $6 billion was invested in subsidized housing in metro Denver, of the $7.5 billion invested statewide. Investments in Denver-area affordable housing resulted in $2.15 billion in annual economic output (nearly $13 billion over six years), $699 million in household earnings ($4.2 billion over six years) and 11,549 jobs – on the way to producing or preserving 21,017 Denver-area homes.

“Colorado is fortunate to have good data partners to conduct this kind of research,” said Jennifer Newcomer, research director with Colorado Futures. “Continuing to monitor the production and contribution that affordable housing developments make to the state’s economy, along with the need for such housing, is essential to support data-informed decisions for future investments.”

In an example of the impact of just one housing provider, the study revealed that within that metro Denver landscape, private and public investments in Urban Land Conservancy’s efforts to build or preserve 851 subsidized units over six years generated $217 million in local economic activity between 2018 and 2023 – including $77 million in average annual economic output, $25 million in household earnings and 413 jobs.

Despite the significant impacts of these investments, the 30,174 homes built or preserved in Colorado during the period of study addressed only 7.7% of cost-burdened renter household demand statewide. That means more than 90% of the need has not yet been met. The cost of living continues to rise, and demand for affordable units far outpaces supply.

The research is clear. Investment in affordable housing produces real economic returns for Colorado’s workers, businesses and communities. Every dollar invested in affordable housing is a dollar that comes back to the community. The path forward requires sustained commitment from public and private partners to build on what the data already proves.

The Colorado Futures Center at Colorado State University is an independent, nonpartisan and academically grounded 501(c)(3) organization dedicated to informing about economic, fiscal and public policy issues impacting community economic health and quality of life in Colorado and beyond.

Read the full report from the Colorado Futures Center at coloradofuturescsu.org. To learn more about Urban Land Conservancy’s work in affordable housing and community development, visit urbanlandc.org.