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Colorado Springs Faces Critical Housing Shortage

  //house-home.news-articles.net/content/2026/02/0 .. ado-springs-faces-critical-housing-shortage.html
  Published in House and Home on Sunday, February 1st 2026 at 3:33 GMT by KKTV11
      Locale: Colorado, UNITED STATES

COLORADO SPRINGS, Colo. - February 1st, 2026 - A newly released report paints a stark picture of the housing landscape in the Pikes Peak region, revealing a critical shortage that threatens not only the affordability and accessibility of homes for residents, but also the future economic viability of Colorado Springs. The report, published by the Colorado Springs Chamber & EDC, details a deficit of over 16,000 homes, a figure that continues to climb with sustained population growth.

The findings, released late last year but gaining significant traction now, underscore a deepening crisis years in the making. Suzanne Vermillion, CEO of the Chamber & EDC, described the current market as "exceptionally tight," emphasizing the immense difficulty faced by individuals and families seeking housing. "The demand is simply outstripping the supply," she stated. "We are at a critical juncture where inaction will have lasting negative consequences."

Drivers of the Crisis: A Complex Web of Factors

The report doesn't attribute the shortage to a single cause, but rather a confluence of factors. The most prominent is the rapid population growth experienced by Colorado Springs over the past decade. While a desirable location for many - drawn by the outdoor recreational opportunities, improving job market and relative affordability compared to Denver - this influx has placed an enormous strain on the existing housing stock.

However, population growth is only part of the story. The geographical constraints of the Pikes Peak region play a significant role. Colorado Springs is nestled amongst mountains and natural preserves, severely limiting the amount of developable land. This scarcity drives up land prices, making housing projects more expensive and less appealing to developers, particularly when it comes to affordable options.

Adding to the challenge are the escalating costs of construction. Supply chain disruptions experienced in recent years, coupled with labor shortages in the building trades, have pushed the price of materials and skilled labor significantly higher. This makes it increasingly difficult to build new homes at prices attainable for a large segment of the population.

Beyond Personal Hardship: The Economic Ripple Effect

The housing shortage isn't simply a matter of inconvenience or personal financial strain for residents; it's becoming a significant impediment to economic growth. The Chamber & EDC report highlights a worrying trend: businesses are actively losing opportunities and struggling to attract and retain employees due to the lack of available housing.

"We're hearing consistent feedback from our business partners that potential hires are turning down offers because they can't find suitable and affordable places to live," Vermillion explained. "This is particularly acute for middle-skill positions, which are crucial for a diverse and healthy economy. If we can't house our workforce, we risk stifling innovation and hindering the growth of existing businesses, as well as discouraging new ones from relocating here."

This situation creates a vicious cycle. Limited housing stock drives up rental and purchase prices, making it harder for employees to afford to live in the area. Businesses struggle to fill positions, impacting productivity and growth. The long-term implications could include a decline in the quality of life and a weakening of the region's economic competitiveness.

Proposed Solutions and Calls to Action

The Chamber & EDC is urging local government officials to prioritize addressing the housing shortage with comprehensive and proactive measures. The report advocates for a multi-faceted approach, including:

• Streamlined Permitting Processes: Reducing bureaucratic hurdles and accelerating the approval process for new housing developments.
• Incentivizing Affordable Housing: Offering financial incentives, such as tax breaks and density bonuses, to developers who incorporate affordable housing units into their projects.
• Exploring Alternative Housing Options: Promoting the development of accessory dwelling units (ADUs), tiny homes, and other innovative housing solutions.
• Land Use Reform: Examining zoning regulations to allow for greater density and a wider range of housing types.
• Investment in Infrastructure: Ensuring adequate infrastructure, such as roads, schools, and utilities, can support new housing developments.

The full report, available for review at [ https://csedc.org/wp-content/uploads/2025/12/Housing-Update-Report-December-2025.pdf ], serves as a wake-up call for the community. Addressing the housing crisis will require a concerted effort from all stakeholders - government, businesses, and residents - to ensure a sustainable and prosperous future for Colorado Springs.