If you’ve been thinking of buying a home in Colorado, but you’re worried about affordability there may be some relief on the horizon. Colorado’s housing market is notoriously competitive, and for many aspiring homeowners, affordability remains a major hurdle. However, two new pieces of legislation are making their way through the state legislature that could have a big impact on homeownership opportunities—particularly for those looking to purchase a starter home.
House Bill 1272: Expanding Access to Middle Market Housing
On its way to the House floor after passing committee with a strong 12-1 vote, the Construction Defects & Middle Market Housing bill (HB 1272) is designed to strike a balance between protecting homeowners and encouraging builders to create more affordable multi-family housing.
The bill introduces key reforms to construction litigation, addressing high costs that have discouraged builders from developing starter homes. By implementing clear standards for construction defect claims, requiring third-party inspections, and setting reasonable mitigation measures, HB 1272 aims to reduce unnecessary legal costs while maintaining strong protections for homeowners.
Tyrone Adams, CEO of the Colorado Association of Realtors (CAR), testified in favor of the bill, emphasizing how the lack of affordable housing impacts not just first-time buyers, but the entire state economy. He highlighted a staggering statistic: the median net worth of renters is just $10,400, while homeowners have a median net worth of $400,000—a stark contrast that underscores the financial benefits of homeownership.
If passed, HB 1272 would establish the Multi-Family Construction Incentive Program starting in 2026, promoting development that could ease Colorado’s housing shortage and make homeownership more accessible.
House Bill 1093: Limiting Anti-Growth Policies
A second bill, Limitations on Local Anti-Growth Land Use Policies (HB 1093), has now passed both chambers and is headed to the Governor’s desk for final approval.
This legislation prevents local governments from imposing land use restrictions that directly limit population growth, development permits, or residential building applications—essentially removing regulatory barriers that have slowed new housing construction. The bill also ensures that cities cannot reduce residential densities in urban areas already identified for housing expansion.
While municipalities still have the ability to challenge land use ordinances in court, this bill represents a significant shift in how growth and development are managed in Colorado. It is expected to encourage more housing development, particularly in areas experiencing the greatest demand.
What This Means for Homebuyers
If you’re a prospective homebuyer in Colorado, these bills could signal positive change ahead:
More starter homes and multi-family housing options could enter the market in the coming years, helping to ease competition and stabilize prices.
Fewer legal and regulatory roadblocks for builders may encourage more residential construction, particularly in sought-after areas.
Restrictions on anti-growth policies ensure that municipalities cannot arbitrarily limit new development, which could help improve housing inventory.
While real estate prices in Colorado remain high, these legislative moves represent a step in the right direction—making it easier for people to achieve their dream of homeownership.
If you’ve been Dreaming of buying your first home-let’s chat. I’d be happy to discuss how these changes might impact your homeownership journey.