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Access to safe, decent affordable housing has never been more important in Denver. Today 100,000 more people live in Denver than did just a dozen years ago, with as many as 100,000 more anticipated over the next decade. While our city's population has spiked, the housing stock is simply not keeping pace with community needs. Ironically, while home prices have risen dramatically here--generally good news for a city's economy--this boom is also increasingly making rentals and for-sale housing unaffordable for too many.

row of affordable homes at daytime

Denver's population is growing much faster than our supply of housing, and this gap is growing every year. With demand growing so much faster than supply, prices have risen dramatically.

Vacancy rates--that is, the number of apartments available for rent, or houses available to rent or buy--are very low. Today in 2016, even though we're seeing a robust boom in the construction of housing, particularly in and around downtown, the overall challenge of affordability is still very real for too many Denver households.

In 2015, the average rent in Denver for a two-bedroom apartment was nearly $1,500--more than many working people can afford. 

The short answer is easy: Denver's affordable housing issues affect everyone.

Anyone who cares about the quality of life here can appreciate that housing affordability is a critical issue for many residents. Remember that we are not simply talking about the challenges of homelessness and people with extremely low income; we are also talking about a wide spectrum of working people who earn up to $50,000 yet struggle with basic monthly bills for housing and utilities.

Denver's workforce includes a varied range of occupations and annual incomes, such as:
    Dishwasher - $19,380
    Waiter/waitress - $21,910
    Home health aide - $24,980
    Teaching assistant - $27,620
    Bank teller - $29,330
    Veterinary tech - $31,180
    Bus driver - $32,920
    Community health worker - $36,830
Many young people, growing families, low- and middle-income families, older adults, or people with disabilities do not have the income that is needed to keep up with the rise in housing costs and the scarcity of availability.

Denver will not be the Denver that we all love--and all work to preserve, protect, and grow--without the opportunity for people of all income levels to live in safety and peace.

Employers are struggling to hire the workers they need to grow their businesses, because workers cannot find housing within reasonable commuting distance.

Our ability to recruit companies to locate here could be reduced if our housing prices and availability does not improve.

Our wonderful climate for entrepreneurs is equally at risk.

Is our lack of affordable housing your problem? It is if you love Denver.

Area Median Income, commonly referred to as "AMI," is a federal calulation based on census data from every geographic area. The number matters a great deal when we look at affordable housing in Denver--an area with a current AMI of $63,000 for a one-person household.

Anyone you know who earns less than that figure is very likely to be adversely affected by housing costs here. Below is the 2018 AMI chart for Denver, by household size. Consider that many people who work, including full-time work, earn less than 100% AMI. This is why we are so concerned about income levels, housing affordability, and creating more units for people in the 30-80% AMI range.


Across the U.S., housing costs are considered "affordable" if your monthly rent or mortgage, plus utilities, add up to no more than one-third of your gross household earnings.

This means that if an individual person earns $43,000 annually, for example, he or she has a before-tax monthly income of about $3,580. One-third of that would be about $1,200. In this example, that would leave about $2,380 for every other expense, including:

    child care
    health care (premium + out of pocket)
    consumer debt or loans
    education beyond high school

You can quickly see that paying 30% of your gross monthly income for housing does not leave much flexibility to build a better future.

Consider, too, that many Denver households are "rent-burdened"--meaning that they pay more than this 30% of their monthly income for housing.

  • There are about 70,000 renter households in Denver today. There are about 30,000 homeowner households.

  • 87% of Denver's renter households earn less than $35,000 annually.

  • Thus half of all renter households, and a third of all households here, struggle with this guideline of "affordability."

On the DEVELOPMENT side, OED invests in affordable units. 
    We deliver on Mayor Hancock's ambitious 3x5 Goal (to build or preserve 3,000 affordable units in five years, 2013-2017)
    We help fund emergency shelter and supportive housing
    We close the gap for affordable units between developer and bank financing, making projects possible with local and federal dollars
    We add convenants to funded projects to ensure that affordable units stay that way in the future
    We manage Denver's Inclusionary Housing Ordinance 

On the PROGRAM side, OED provides in services for people.  
      We fund tenant-based rental assistance programs    
      We fund homebuyer counseling for people ready to buy
      We fund down payment assistance 
      We fund emergency home repair programs and accessibility modifications  

Together, this is an ambitious approach to reach five overall goals:

1 - Creating opportunities for all residents to live where they work and play

2 - Investing in mixed-use, mixed-income projects wherever possible to create the greatest economic diversity

3 - Focusing affordable housing investments near transit and in targeted neighborhoods to create catalytic economic opportunities

4 - Anticipating and, where possible, mitigating the involuntary displacement from gentrification

5 - Providing incentives and resources to support private and nonprofit investment

For more detail about Denver's current and future plans and affordable housing goals, see Housing Denver

In the past, federal HOME and Community Development Block Grant (CDBG) funds have been the city's primary tools for investing in housing. These funding sources are both declining sharply and are especially uncertain in our current national political climate.

Starting in 2015, the city of Denver began to step in to fill this alarming gap. In 2015, the city, the State and the Colorado Housing Financing Authority (CHFA) together invested $10M in what was launched as the Revolving Affordable Housing Loan Fund (RAHLF). Projects began moving swiftly through this new pipeline, and the loan fund is fully invested now in 2017.

In 2016, the city made a one-time allocation of $8M from its General Fund for affordable housing.

In 2017, the city launched its historic dedicated fund for affordable housing, which is anticipated to raise up to $15M annually for a 10-year period. So while the federal funding outlook for housing is uncertain, we have taken local steps to ensure that our bold plans to improve our create and preserve our affordable housing units can continue.

In May 2016, OED released a study of the issues of gentrification and involuntary displacement of residents and businesses in Denver. The study looks at which area neighborhoods are particularly at risk, and examines the array of tools that could be used to reduce the displacement while also preserving the beneficial effects of public and private investment.

Issues of displacement continue to grow in urgency for too many Denver residents. As our city focus continues to move toward housing preservation on equal emphasis with constructing new units, the 2016 remains highly relevent.

Brochure: Highlights of OED study (3pp)

Study (40pp)

In 2017, the city launched a new RFP for agencies to help distribute emergency housing assistance; this distribution is on a fast track to begin qualifying households for cash assistance this fall. Funding for this assistance will come from the new dedicated fund for housing that began January 1, 2017 as well as from corporate and philanthropic sources. Our initial goal is to serve 400 at-risk households in the first 12 months.