Housing Impacts Workforce Growth in Mesa County

Photo of new housing in western colorado, multi-family town homes

By Curtis Englehart, Executive Director for Grand Junction Economic Partnership (Originally published in the Grand Junction Daily Sentinel – July 19, 2025 ) 

Colorado communities across the nation are facing a housing crisis. With limited inventory, rising rent prices, and increased cost of living, many workers and their families struggle to find housing that fits their lifestyle and budget.

Housing impacts us all, whether you are a recent graduate looking for your first apartment, a healthcare professional relocating for a job, or an employer trying to recruit and retain skilled workers. To support our growing economy, retain talent, and attract new industries, we must treat housing as a core infrastructure and work to address existing challenges together.

 

A Shift in Cost of Living

Historically, Grand Junction has been one of the more affordable communities in Colorado, especially when compared to metro areas like Denver, Colorado Springs, or even Salt Lake City. However, the latest data points to a shifting reality.

The Cost-of-Living Index (C2ER) evaluates price levels for consumer goods and services, housing, utilities, transportation, and healthcare to produce an overall index score. A score over 100 indicates a community’s cost of living is above the national average.

The Q1 2025 report scored the Grand Junction MSA at 106.1, slightly higher than the national average and nearly equivalent to Phoenix’s 106.5. Grand Junction was higher than Colorado Springs and Boise, which both scored 102.1, and significantly higher than Pueblo—a similar sized community—which scored 93.0. Denver scored 109.1 and Salt Lake City scored 108.3. Comparatively, in 2019, Grand Junction’s composite score was 99.1 and Denver’s was 112.8.

While Grand Junction remains more affordable than some major urban centers and regions, this shift in data reflects a rising cost of living, especially in the housing category, significantly impacting workforce attraction and retention. Entry-level and mid-career professionals may find it more difficult to obtain housing, creating ripple effects for our economy and triggering challenges for industry growth.

 

The State of the Housing Market

To ensure there is adequate workforce housing, there needs to be inventory for a diverse mix of housing types and pricing to meet needs across multiple income levels. The most recent Bray Real Estate report shows the number of home listings is up compared to last year and the median home price remains at $423,450. There are currently 734 active listings with 20% in the $300k – $399k range and 43% in the $400k-$750k range. A Zillow estimate of the rental market shows 246 available units with an average rent at $1650 per month.

New residential construction has also picked up with 353 permits issued year-to-date, up 12% from last year. Several developments are coming online to bridge the gap between affordable housing and rental options. Among these are the Salt Flats, a 21.78-acre property on 28 Rd purchased by the City of Grand Junction from Enstrom Candies, which is anticipated to bring 450 affordable and attainable workforce housing offering a mix of rental and homeownership units. Additionally, on Riverside Parkway near Las Colonias, new apartment buildings intended for entry-level renters will add over 200 new housing units to the market.

The Fruita Mews, an affordable housing complex featuring 50 energy-efficient townhomes serving those earning 30% to 100% AMI, welcomed its first residents in October. The redevelopment and reuse of the former Family Health West Oaks facility is also set to break ground this month and will create 62 new units capped at 100% AMI with preference for Fruita workers.

 

State & Local Solutions

Across the state, communities are testing creative solutions to address housing access. These solutions include expedited planning and permitting, construction of modular or prefabricated units and accessory dwelling units (ADUs), and the creation of new funding mechanisms through CHFA, the Colorado Division of Housing, and OEDIT.

Here at home, Mesa County announced participation in an artificial intelligence (AI) pilot project within its Community Development Department. This pilot aims to improve efficiency and reduce turnaround time for staff to review, and process permit applications, helping to alleviate potential friction points for housing development.

The City of Grand Junction announced they will be launching the ‘At Home in GJ’ program including a voluntary rental registry and guide, landlord incentives, and tenant workshops. Grand Junction is also establishing an industry-led affordable housing task force to review and address code language.

The City of Fruita has welcomed several new housing developments through changes in land use code, resulting in construction beyond single-family housing throughout downtown and beyond. Fruita was also recently awarded $1.5 million through Proposition 123 for the purchase of land to support affordable housing.

Community programs through Housing Resources of Western Colorado also offer home-buyer education and down payment assistance, while several local employers have launched creative programs, childcare stipends, and incentives to help attract and retain staff. Several healthcare employers including St. Mary’s Medical Center and Community Hospital have also facilitated employer-assisted housing options to support workers relocating into our community.

 

Housing Is Economic Infrastructure

Housing is not just a social issue; it’s economic infrastructure. Addressing housing challenges with urgency, creativity, and collaboration will be critical to unlocking our full potential. By aligning our efforts across the public and private sectors, we can ensure that our community remains a place where workers, families, and businesses thrive. Affordable, accessible housing is essential to building a strong workforce, a healthy economy, and a Mesa County where everyone can succeed.

 

If you are interested in learning how you can partner with us to impact the future of our community, please reach out to me by emailing curtis@gjep.org

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