Housing Affordability Is A Major Barrier of Homeless Residents!
P E O P L E C A N ‘ T A F F O R D T H E COST O F H O U S I N G
- In 2023, the average minimum wage in Metro Denver was $14.17
- The average renter wage was $28.99
- The housing wage for a 2-bedroom Fair Market rental is $35.84
In Metro Denver, anyone relying on Social Security Income (SSI), working full-time and earning minimum wage, earning 30% of the Area Median Income (AMI), or working full-time earning the average renter wage ($28.99) is at risk of homelessness.
Will the Colorado housing shortage be resolved by continuing to building primarily luxury housing such as Belmar Park West that most people who work full-time cannot afford?
According to the Common Sense Institute, Denver Metro spends between $30,000 and $60,000 each year per person experiencing homelessness. That total includes city government spending and spending on homelessness by charitable groups and Denver Health. Rental housing groups estimate the average annual rent for a one-bedroom unit is about $20,000.
This includes spending for equivalent programs and services in Denver, Aurora, and Boulder. In total, programs and services grew from $465 million in 2021 to $749 million in 2023.
In 2021, Denver allocated $393 million for homelessness-related services and projects. This includes the total expenses for Denver Police Department, Denver Fire Department, Denver Health, the Denver Department of Housing Stability (HOST), homeless encampment cleaning contracts, and non-profits dedicated to homelessness. In fiscal year 2023, homelessness-related expenses in these categories grew to $635 million.
Spending on homelessness has surged, with the Denver metro area witnessing a 61% increase in estimated spending, primarily driven by Denver itself. However, this investment hasn’t yielded the desired results, as available shelter beds often go unused, even though there has been a 28% increase in year-round beds since 2016.
Leaders should implement a new system of accountability and transparency to address the crisis. This includes using regional databases and tracking tools to monitor the progress of homeless individuals through the system and diligently tracking spending.
The California Statewide Study of People Experiencing Homelessness (CASPEH) is the largest representative study of homelessness since the mid-1990s and the first large-scale representative study to use mixed methods (surveys and in-depth interviews).
There are many statistics and findings presented in the study. Here are some that we hope you will find relevant:
High housing costs and low income left participants vulnerable to homelessness.
California is home to 12% of the nation’s population, 30% of the nation’s homeless population, and half the nation’s unsheltered population.
We administered questionnaires to nearly 3,200 participants, selected intentionally to provide a representative sample, and weighted data to provide statewide estimates.
People experiencing homelessness in California are Californians. Nine out of ten participants lost their last housing in California; 75% of participants lived in the same county as their last housing.
Most participants were unsheltered. More than three quarters (78%) noted that they had spent the most time while homeless in the prior six months in unsheltered settings (21% in a vehicle, 57% without a vehicle).
Only 17% did not have health insurance such as Medicare/Medicaid or other.
Overall, 36% of participants had sought help to prevent homelessness, but most sought help from friends or family, rather than non-profits or government agencies.
Seventy percent believed that a monthly rental subsidy of $300-$500 would have prevented their homelessness for a sustained period; 82% believed receiving a one-time payment of $5,000-$10,000 would have prevented their homelessness; 90% believed that receiving a Housing Choice Voucher or similar option would have done so.

