Colorado Housing Costs Strain Half of Renters
The state's first statewide housing needs assessment finds rent-burdened households across Colorado have grown as mortgage and rent costs climb.
Updated on Nov. 10, 2026 in Apartments
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The Colorado Department of Local Affairs released its first statewide housing needs assessment report. The report finds that one in three Coloradans is rent or cost-burdened, with half of renters in that category.
Why it matters
Rising mortgage and rent costs since 2020 have pushed housing out of reach for many households in Colorado. The assessment gives state officials a first statewide baseline for measuring housing need across the state.
A $500,000 mortgage at 6.3% now costs $3,200 a month, up from $2,300 at 3.1% in 2020. Income of $153,000 a year is needed to buy a median-priced home, while renting the average apartment requires just under $73,000 a year.
The players
Colorado Department of Local Affairs
The Colorado state agency responsible for local government support and community development, which produced the state's first housing needs assessment.
The details
The report was produced by the Department of Local Affairs and is the first-ever statewide housing needs assessment for Colorado. Renters have experienced double-digit rent increases since 2020, and rent-burdened households spend more than a third of their income on rent.
Timeline
2020: A mortgage on a $500,000 house cost $2,300 a month at a 3.1% interest rate.
2020 and 2021: Rent increases began accelerating in the early pandemic.
2026: The same mortgage now costs $3,200 a month at a 6.3% interest rate.
Market Landscape
The Colorado Department of Local Affairs' first-ever statewide housing needs assessment establishes the first state-level baseline for measuring rent and mortgage burdens. Its findings document how the cost of owning and renting has diverged from incomes since 2020.
Renters who spend more than a third of their income on rent have less room in their monthly budget for savings and other expenses. Those weighing a home purchase face a monthly mortgage payment that has risen by roughly $900 since 2020 at the same $500,000 price point.
The takeaway
Housing costs have outpaced many household budgets since 2020, and the state's first assessment gives residents a clearer picture of how widespread rent and cost burdens have become. Renters and buyers can use these benchmarks to gauge how their own costs compare with statewide averages.
Further reading
For more on rental costs across the state, see Apartments coverage.
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