With Denver’s massive population growth since Colorado’s decision to legalize cannabis, a housing crisis has arisen. Though many may believe that the homeless population in Denver are mostly individuals from out of state, a new report shows that this is untrue.
This common misconception stems from the belief that the influx of people who relocated to Denver in pursuit of legal cannabis use have since become homeless. However, Executive Director of the Metro Denver Homeless Initiative (MDHI), Jamie Rife, has confirmed that many people experiencing homelessness in the metro area are actually from Colorado.
In its annual State of Homelessness report, MDHI has stated that 87% of individuals who specified a prior address shared that their last permanent address was in Colorado. Out of the 4,384 people surveyed who used homelessness service providers from July 2021 to June 2022, 3,810 had a Colorado location listed as their last permanent address. The remaining 574 reported to have previous addresses in Texas, California, Florida, Arizona, New Mexico and Oklahoma.
The MDHI report also shows that Colorado has the seventh-highest housing shortage in the entire United States. In contrast to this, Colorado also has the eighth-highest living wage, or the allotted amount you must make in order to comfortably live, in the country. With the housing market constantly rising due to the population increase, as well as the increase in gentrification, it is nearly impossible to afford to live comfortably in Denver. Gentrification is a process in which a poorer urban area is adapted and changed by wealthier people moving in, attracting new business and improving housing.
“The main causes of homelessness are the inability to pay your rent or mortgage,” Rife stated. As housing costs keep rising, homelessness levels will continue to rise as well. Gentrification is a main culprit, though it is often ignored. Though the population influx may have some impact on the rise of the living wage, it is still essential to consider how gentrification causes displacement for families who were natives to this region, and to certain neighborhoods.
Even for people who are originally from Denver, it is becoming increasingly harder to afford common living expenses at a reasonable salary. It is reported that the average salary in Denver is $82,329 annually. In other cities, this might be plenty to cover living expenses and then some. However, in Denver, this is barely enough compensation to afford suitable living.
Colorado residents have stated that 24% of their income goes towards rent, making Denver one of the top ten most expensive cities in the U.S. In addition to this lofty statistic, Denver is also the second most gentrified city in the country. This is something to contemplate when moving to a new neighborhood like Five Points or the Highlands, which are two neighborhoods in Denver that have endured gentrification, causing displacement for their original inhabitants.
Though gentrification has become a popular trend across the United States, Denver has been at the forefront of this wave, with 27% of its neighborhoods affected. Considering the rise in population since Colorado’s legalization of cannabis, Denver has been unable to accommodate for the boom.
Gentrification has pushed many families from their homes, leading Colorado natives to feel uncomfortable in their own neighborhoods, sometimes even leading to homelessness. Families who set their roots down years, or even decades, ago are the ones who are truly being affected by gentrification, not newcomers to Colorado.
In the past five years, the homeless population has increased by 15%, and still continues to rise. Sky-rocketing rent prices, not the legalization of cannabis, has brought about this increase.
It is crucial to raise awareness around issues that are really at hand. With common misconceptions brewing and being spread, it is easy to ignore the true causes of these problems. We must hold ourselves accountable to this before we can successfully work towards a decrease in homelessness. To prevent this problem, we can start by researching the histories of different areas we are planning to move in.
