Colorado is currently witnessing an increase in the number of families with children facing homelessness.
According to the 2024 Annual Homelessness Assessment Report (AHAR) to Congress by the U.S. Department of Housing and Urban Development, Colorado experienced a significant rise in the number of families with children facing homelessness, jumping from 4,878 to 8,519 people between January 2023 and January 2024, marking a 134% increase.
Colorado saw a significant rise, ranking third in the nation, following Illinois and Hawaii. Chicago is experiencing a significant challenge with its shelter system due to an influx of migrants. Hawaii continues to face high housing costs.
In Colorado, the rise in homelessness among families with children coincides with the growing unaffordability of the Denver housing market, as reported by the Common Sense Institute.
Housing demand in Denver and surrounding areas has surged, but builders are struggling to meet the need.
“Denver is mired in a deeply unaffordable housing market, with an estimated housing unit deficit ranging up to 18,910 units,” Common Sense Institute wrote in a September 2024 report. “Over the past decade, the number of hours required to work at the average hourly wage to afford the mortgage on a newly purchased average-priced home in Denver has skyrocketed by 176%, increasing from 38 to 105 hours. Although wages in Denver have risen by 44% during this period, they have significantly lagged behind the rise in housing costs.”
Homelessness among families with children is rising, even as overall homelessness in Colorado has dropped by 5.6% (602 individuals) from 2023 to 2024.
Colorado saw a rise as the national homelessness rate also went up. The nation experienced a 39% rise in families with children facing homelessness, while the overall population saw an 18% increase.
The HUD report highlighted various reasons for the increase in homelessness, particularly noting the rise among families with children.
It referenced various economic elements and the conclusion of the temporary boost in the child tax credit to $3,000 per year, as well as issues related to systemic racism.
“Several factors likely contributed to this historically high number. Our worsening national affordable housing crisis, rising inflation, stagnating wages among middle- and lower-income households, and the persisting effects of systemic racism have stretched homelessness services systems to their limits,” the report said. “Additional public health crises, natural disasters that displaced people from their homes, rising numbers of people immigrating to the U.S., and the end to homelessness prevention programs put in place during the COVID-19 pandemic, including the end of the expanded child tax credit, have exacerbated this already stressed system.”
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