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Colorado's Population Growth Slows as Housing Costs and Job Losses Threaten State's Competitive Edge
Colorado added just 23,725 residents in the year ending July 1, 2025, less than a third of the previous year's gain, as housing costs strain households and the state lost jobs for the first time outside a national recession since 2001.
Colorado's population growth has slowed sharply, and economists warn that soaring housing costs and job losses are eroding the state's competitive edge, according to new data presented at the annual State Demography Summit.
The state added just 23,725 residents in the year ending July 1, 2025, bringing its population to 6,011,146 â less than one-third of the previous year's revised gain of 75,892. Births outpaced deaths by more than 20,000, the most since 2017, while net migration added only about 3,000 people.
"Colorado really remains a competitive state, but we remain middle of the pack, where we used to be ⦠in the Top 10," Hanna Scovill, senior economist at Pacey Nehls, said at the summit. "Compared to our peers, we're kind of falling behind in competitiveness."
The slowdown is uneven across the state. Colorado Springs grew 0.5%, adding 2,671 people, the largest gain among cities. Smaller communities with 10,000 to 24,999 residents grew 1.57%. El Paso County remains the most populous at 758,835, followed by Denver at 737,680. But 23 counties, including Boulder and Jefferson, lost population, as did 129 municipalities.
Housing remains a central challenge. Colorado added 36,456 housing units between July 2024 and July 2025, a 1.4% increase that far outpaced population growth. Yet nearly 34% of households â about 843,100 â spend more than 30% of their income on housing. The strain falls on 49% of renters, compared with 25% of homeowners.
The state needs an additional 30,600 homes annually through 2036 to keep pace with expected growth, according to a housing analysis. The current construction pace is sufficient but will not resolve the existing shortage or affordability problems.
Analysts estimate a household needs $153,700 in annual income to afford a median-priced home. The gap between median household income and the income needed to buy approached $50,000 in 2026, up from $2,600 in 2015. The last year a median-income household could purchase a median-priced home without spending more than 30% of its income on housing was 2014.
The economic picture is also troubling. Colorado lost 4,898 jobs in 2025, a roughly 0.14% decline even as employment grew nationally. It marked the state's first job losses outside a national recession since 2001. Economists expect employment to grow 0.6% annually from 2027 to 2050, roughly twice the projected national pace but far below the 2.6% average during the 2010s.
The bottom line, analysts say, is that Colorado can build enough housing to accommodate slower growth and still leave residents behind. The challenge is delivering homes people can afford â and that fit an older state's changing needs.