General Assembly tackles housing costs with new regulatory standards for factory-built homes

Colorado's Senate Bill 2 aims to tackle the state's escalating housing crisis by streamlining regulations for factory-built homes. Introduced on April 23, 2025, the bill seeks to establish regional standards for these structures, a shift from the current address-specific regulations that critics argue stifle innovation and increase costs.

With the average cost of a new home in Colorado soaring to approximately $483,000—up from $419,000 in 2023—lawmakers are under pressure to find solutions that can alleviate the financial burden on prospective homeowners. Senate Bill 2 builds on previous legislative efforts, including House Bill 21-1329, which called for a task force to recommend transformative housing policies, and House Bill 22-1282, which initiated an innovative housing incentive program aimed at fostering new construction methods.

Proponents of Senate Bill 2 argue that by adopting regional standards, the state can enhance the efficiency of factory-built housing, ultimately increasing supply and reducing costs. This approach is particularly crucial as off-site construction partners, including modular manufacturers, have voiced concerns about existing regulatory barriers that hinder growth and innovation in the housing sector.

However, the bill is not without its detractors. Some lawmakers and community advocates worry that loosening regulations could compromise safety and quality standards in housing construction. As the debate unfolds, the implications of Senate Bill 2 could reshape Colorado's housing landscape, potentially leading to more affordable options for residents.

As the legislative session progresses, the future of Senate Bill 2 remains uncertain, but its introduction marks a significant step in addressing one of Colorado's most pressing issues: the need for affordable housing solutions.