Colorado faces housing crisis as parents worry about affordability for children

House Bill 1272, introduced in the Colorado State Legislature on April 23, 2025, aims to tackle the state's escalating housing crisis by streamlining construction litigation laws to encourage the development of affordable condominiums and townhomes. With over 80% of parents worried about their children's ability to afford housing in Colorado, the bill seeks to address the urgent need for more entry-level homes in a market where the median age of first-time homebuyers has risen to 38.

The legislation comes in response to a significant decline in condominium construction, which has plummeted from a ratio of 1.25 new apartments for every condominium before 2009 to a staggering 14 to 1 in recent years. This shift has contributed to a housing shortfall of at least 100,000 homes, exacerbating the challenges faced by millennials, who represent 38% of the homebuying market.

Key provisions of House Bill 1272 include reforms to current construction litigation laws that many developers cite as a barrier to pursuing condominium projects. By reducing legal hurdles, the bill aims to incentivize builders to invest in affordable housing options, thereby increasing the variety and availability of homes for first-time buyers.

Debate surrounding the bill has highlighted concerns from homeowners about ensuring quality in new developments. Proponents argue that the reforms are necessary to stimulate construction and provide more affordable options, while critics caution that loosening regulations could compromise building standards.

As Colorado grapples with a housing affordability crisis, House Bill 1272 represents a pivotal step toward addressing the needs of a growing population. If passed, the bill could reshape the housing landscape, making homeownership more attainable for future generations. The legislature's decision on this bill will be closely watched, as its implications could resonate throughout the state's economy and social fabric.