Colorado lawmakers took notable steps during the 2025 legislative session aimed at addressing the state’s affordability crisis, especially for renters.
Despite expanding protections for tenants and implementing laws to facilitate housing construction, budgetary restrictions have limited new public investments in housing.
The mantra in the legislature continues to lean on funds from the voter-approved Proposition 123 and financial commitments made in previous years.
As evictions and homelessness escalate, some housing affordability proposals fell short of their goals, raising concerns as economic uncertainties loom.
This session yielded a mix of results for housing affordability in Colorado, indicating a complex landscape ahead for the years to come.
Among the key achievements was the introduction of enhanced renter protections that emerged in response to federal rollbacks under the Trump administration.
House Bill 1090, set to take effect on January 1, 2026, mandates that landlords disclose the complete cost of a lease upfront, covering mandatory charges to renters.
This initiative aims to combat the growing issue of hidden fees that tenants often encounter in rental agreements.
The bill’s chief sponsor, Rep. Emily Sirota, emphasized how pandemic-induced price hikes illuminated unfair business practices, contributing to the sentiment of being taken advantage of.
A joint study revealed that fees from major Colorado landlords can inflate monthly rental costs by 10% to 30%.
Zach Neumann, a co-founder of the Colorado Economic Defense Project, noted that advertised rental prices often mask these additional costs, leading to confusion among potential tenants.
This lack of transparency not only affects renters, but also creates an uneven playing field for smaller landlords competing against larger firms that avail themselves of these fee structures.
In addition to enhancing transparency, the legislature empowered the state and local governments through Senate Bill 20, enabling them to enforce habitability laws more effectively.
This crucial legislation allows the attorney general and local governments to petition courts for receivership of disreputable rental properties demonstrating a pattern of neglect by their landlords.
This legislative move was a direct response to alarming conditions faced by tenants, particularly highlighted by the situation at a specific apartment complex within Sen. Mike Weissman’s district.
Although the precedent-setting law was met with concerns from landlord groups, Weissman insisted it was necessary to rectify dangerous housing conditions that have been long ignored.
Lobbyists from the Colorado Apartment Association voiced their concerns that the receivership could impose disproportionate penalties on landlords for relatively minor issues like delayed repairs.
Furthermore, while Polis vetoed House Bill 1004, which would have restricted the use of many rent-setting algorithms, advocates indicated that such measures would return in future sessions.
Across the legislative session, tensions grew between efforts to control rental costs and concerns from industry representatives about potential negative impacts on investment and new construction.
As the 2025 session progressed, steps to enhance housing supply were also taken, albeit not as boldly as in the previous year.
Lawmakers addressed construction defects litigation by passing House Bill 1272, which relieves some legal burdens for condominium developers, promoting the construction of such housing.
Additionally, House Bill 1273 permits large cities to allow builders to develop apartments with a single stairwell instead of two, reducing construction costs.
The state also made financial commitments with Senate Bill 6, which allows the state treasurer to invest $50 million into affordable housing projects targeting low- and middle-income households.
Senate Bill 167 further creates a first-time homebuyer program explicitly aimed at public school teachers, ensuring that the state cohort aids essential workers in securing better housing options.
Despite these advancements, a proposed measure to facilitate housing on church and public school lands faced defeat.
Local government groups expressed fears that such changes could disrupt community planning efforts, showing the complexity of balancing interest between affordable housing solutions and local governance.
Through all these developments, advocates are focusing on implementing and refining previously established laws aimed at increasing housing affordability.
As part of these efforts, the Southwest Energy Efficiency Project announced the launch of Housing Forward Colorado to collaborate with local leaders in enacting beneficial policies.
Funding from Proposition 123 is beginning to materialize, tackling concerns through affordable housing construction, rental assistance programs, and downpayment support initiatives.
However, the housing market is displaying mixed signals, with rent and home prices in metro Denver stabilizing or slightly decreasing after significant post-pandemic spikes.
Compounding the issue are persistently high interest rates that continue to complicate the dynamics among homebuyers, sellers, and builders.
Other challenges include potential federal tariffs impacting construction materials and labor shortages within the building industry.
Matt Frommer, a land use policy manager at SWEEP, expressed optimism about the future of housing construction in Colorado.
He noted that while the current regulatory environment is not producing immediate results, it positions the state for future growth as market demands change.
Looking ahead, adjustments in interest rates and a potential revival of job markets may prompt a return to a housing boom, underscoring the need for a ready supply of available units.
Overall, Colorado finds itself navigating a complex interplay of renter protections, housing supply regulations, and economic pressures, attempting to carve a path towards a more affordable future.
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