Amidst Colorado Affordability Crisis, Just 3% of Residential Land Zoned for Multifamily Housing

A new report suggests loosening restrictive zoning laws on multifamily development could help bring down high housing costs.

1 minute read

August 25, 2025, 9:00 AM PDT

By Diana Ionescu @aworkoffiction


Cyclist rides past row of colorful historic homes in Denver, Colorado.

The majority of residential land in Colorado is zoned exclusively for single-family homes. | Jamilya Khalilulina / Shutterstock

Just 3 percent of residential land in Colorado is zoned for multifamily housing of more than four units, and one in five jurisdictions in the state prohibit housing with more than four units.

According to a Smart Cities Dive piece by Ryan Kushner, 59 percent of residential land prohibits any type of multifamily housing.  “Other zoning restrictions contribute to the dearth of affordable housing options in the state, including minimum lot size mandates, as more than 93% of land zoned for single-family housing requires lot sizes of at least one acre. Parking mandates also exist on 85% of residential land, reducing the amount of land on a parcel that could be devoted to housing and driving up costs, according to the study.”

These factors combine to keep housing development slow and housing unaffordable for many Colorado residents. According to Kushner, “More than 420,000 renting households in the state are considered cost-burdened, spending more than 30% of their income on housing.”

A report from the National Zoning Atlas recommends several changes to Colorado laws that could help spur more housing development. These include legalizing small lots, loosening restrictions on multifamily housing, expanding ADU protections, and eliminating parking requirements.

Friday, August 22, 2025 in Smart Cities Dive

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