Colorado and Washington Tackle Housing Shortages Amid Legal Challenges

In response to escalating housing shortages, Colorado and Washington have enacted significant legislative measures aimed at increasing housing availability and affordability. These initiatives, however, have sparked legal challenges and raised concerns over local autonomy and community input.

Colorado faces a housing deficit of approximately 100,000 units. To address this, Governor Jared Polis has signed several laws since 2024 designed to ease local restrictions and promote diverse housing options. These measures include eliminating occupancy limits, promoting accessory dwelling units (ADUs), and incentivizing factory-built homes near transit hubs. In May 2025, Governor Polis issued an executive order to enforce compliance with these new housing laws by withholding state grants from noncompliant localities. He emphasized the need to "make sure that our limited state resources are used for the maximum possible result, to unleash housing in communities across our state."

However, several Front Range cities have filed lawsuits, arguing that these state measures violate constitutional provisions of local control. Kevin Bommer, executive director of the Colorado Municipal League, stated, "Colorado municipalities will not be bullied by an administration and legislature that gives lip service to local control but does not understand or respect home rule authority." In contrast, Westminster Councilmember Obi Ezeadi criticized the litigation approach and called for negotiation instead.

In Washington state, the Department of Commerce estimates that over one million new homes are needed by 2044, with over 300,000 required in King County alone. To address this demand, the state has enacted laws to boost housing construction, including removing obstacles to development and mandating denser housing near transit stations. House Bill 1491 requires cities and counties to permit denser housing near transit stations, aiming to increase multi-family housing such as apartment buildings near bus and train stations. Additionally, a new law restricts parking requirements for new developments, aiming to reduce construction costs.

While these reforms aim to streamline development, concerns have been raised about reduced community input on historic preservation. Eugenia Woo of Historic Seattle expressed apprehension about the potential impact on historic landmarking processes.

These legislative actions reflect a broader trend of state-level initiatives to address housing shortages and affordability challenges across the United States. By promoting denser housing near transit hubs and reducing parking requirements, the laws aim to create more affordable housing options, reduce urban sprawl, and encourage the use of public transportation. However, the tension between state mandates and local control underscores the complexities involved in implementing such reforms.

As Colorado and Washington push forward with ambitious housing reforms, the ensuing legal battles and community debates highlight the delicate balance between state intervention and local autonomy. The outcomes of these initiatives may set precedents for other states grappling with similar housing crises.