Boulder Analyzes Affordable Housing Gap and Area Median Income Discrepancies

The Boulder City Housing Advisory Board meeting on July 23, 2025, focused on the pressing issue of affordable housing in the city. Key discussions revolved around the definition of affordable housing, the concept of permanently affordable housing, and the significant gap between area median income (AMI) and housing prices.

A central theme of the meeting was the "30% rule," which states that households should spend no more than one-third of their income on housing. The board emphasized the importance of deed-restricted units that maintain affordability over time, ensuring that these homes remain accessible to lower-income families.

The board highlighted the current AMI for a household of three in Boulder, which stands at approximately $135,000. This figure is crucial as it serves as a benchmark for determining housing affordability. However, the meeting revealed a troubling trend: the median sales prices for single-family homes and attached homes have surged disproportionately compared to the AMI over the past 14 years. While AMI has seen modest increases, housing prices have skyrocketed, making homeownership increasingly unattainable for many residents.

For instance, to afford a median-priced single-family home costing $1.3 million, a household would need to earn over $300,000 annually, which is more than double the AMI. Even for attached homes or condos, the purchasing power required is significant, with households needing to earn around $135,000 to afford a typical condo.

The discussions underscored the challenges faced by middle-income families in Boulder, as the rising costs of housing continue to outpace income growth. The board is now tasked with exploring solutions to bridge this gap and enhance housing accessibility for all residents. The meeting concluded with a call to action for further analysis and strategic planning to address these critical housing issues in Boulder.