Colorado Homelessness Housing First, Is It Failing?

As homelessness surges across Colorado, experts and advocates remain sharply divided on the best strategy to reverse the crisis. A new report from the Common Sense Institute of Colorado challenges the effectiveness of the widely adopted “housing first” approach, arguing for greater emphasis on work and treatment-based models.

The report highlights alarming statistics: Colorado ranks ninth in homelessness per capita and has seen a 90% increase in its homeless population between 2020 and 2024—nearly triple the national average. Despite billions spent, the state’s major cities, including Denver, Boulder, and Aurora, continue to grapple with rising numbers and stretched shelter systems.

The Institute criticizes housing-first strategies for failing to reduce overall homelessness, citing the $69,000-per-person cost of Denver’s All In Mile High initiative. It asserts that mental illness, addiction, and joblessness are significant contributors to homelessness and should not be overshadowed by housing availability alone.

In response, the Colorado Coalition for the Homeless defended the housing-first model, calling the report “misleading” and emphasizing that housing-first includes supportive services like case management and crisis intervention. The Coalition maintains that a lack of affordable housing remains the root driver of the crisis, particularly in high-cost areas like Colorado.

The Coalition disputes claims that broader social issues like drug use and public assistance are leading causes, asserting instead that rising housing costs and limited supply are the key factors. It argues that housing-first is data-backed and produces better long-term outcomes for those experiencing homelessness.

While both sides agree that homelessness in Colorado is worsening, they propose fundamentally different paths forward. One favors targeted housing coupled with social services, the other calls for a reevaluation of funding priorities and broader policy reform to address root causes like unemployment and addiction.

Funding for Denver’s All In Mile High program is set to decrease in 2025, even as homelessness continues to climb. Both sides agree on one point: current spending must be more accountable to actual outcomes.

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