Pueblo permitted 320 new housing units in 2025, a 58% jump over the previous year and the city's highest annual total in more than two decades. The milestone comes as Pueblo locks in a renewed three-year commitment under Colorado's Proposition 123 affordable housing program, preserving its shot at a pool of statewide funding that developers and nonprofits compete for every year.
Between 2021 and 2025, the city issued 773 residential building permits representing 1,101 new housing units within Pueblo city limits, according to the City of Pueblo. The 320 units permitted in 2025 alone mark the strongest single year of production the city has logged in more than 20 years, the city says. That surge arrives as Pueblo works to close a much larger gap: a regional housing needs assessment cited by the city identified a need for roughly 9,600 additional homes throughout Pueblo County over the coming decade.
That regional estimate echoes an earlier 2021 housing study, which forecast a need for 9,561 housing units in Pueblo County over the following decade, as reported by the Chieftain. That same study found nearly 55% of Pueblo's home renters were considered cost-burdened, underscoring the pressure behind the push for more affordable units even as overall permitting climbs.
DOLA Accepts Pueblo's Renewed Prop 123 Commitment
On October 7, the Colorado Department of Local Affairs accepted Pueblo's renewed Proposition 123 affordable housing commitment covering 2027 through 2029, according to the city. The commitment covers a three-year cycle. Maintaining that commitment keeps the city, local developers and nonprofit organizations eligible to compete for more than $300 million in annual statewide housing funding tied to the program, per the city's announcement.
Mayor Heather Graham framed the numbers around their impact on residents, saying every new home represents an opportunity for a Pueblo family. Pueblo is making progress, she said, through collaboration, investment and creating needed housing.
Since Proposition 123 was approved by voters in 2022, approximately $18 million in preliminary identified investments have been directed throughout Pueblo County, the city reports. Statewide, the stakes around the program have drawn scrutiny elsewhere: Colorado Public Radio has reported that participating cities and counties must grow their local affordable-housing supply by 3% annually to remain eligible, and that Pueblo's large stock of naturally occurring affordable housing makes hitting that growth rate that much harder. CPR has also described the program as generating $350 million a year in funding, a figure that differs from the more than $300 million annual total cited in the city's own release.
Compass Pointe Leads a Growing Development Pipeline
The biggest single project in Pueblo's pipeline is Compass Pointe Apartments, an approximately $74 million development now under construction and scheduled to open in 2027 with 192 deed-restricted affordable homes. The project will serve households earning between 30% and 80% of area median income, with affordability guaranteed for at least 40 years, the city says. Compass Pointe is being financed through a mix of private activity bonds, federal HOME funding and tap fee waivers.
Behind Compass Pointe sit three more proposed developments still in predevelopment: Ingraham Wright Apartments, with 41 proposed units, and The Riverly Apartments, with 98 proposed units, plus a planned Eastside Redevelopment project. Fox21 News has reported those three developments add up to a combined 209 proposed units. Ingraham Wright was selected for approximately $10 million in Proposition 123 Equity Program financing, while The Riverly Apartments is backed by a $2.5 million Proposition 123 Land Banking award to Archway Communities.
How Pueblo's Numbers Stack Up Against Other Colorado Towns
Pueblo isn't the only Colorado community recalibrating its Proposition 123 commitment for the 2027–2029 cycle. In Parker, the town's commitment jumped from 223 units in the 2024–2026 cycle to 429 units under the state's new formula, the Castle Rock News Press reported. Castle Rock, meanwhile, entered its current cycle with a 276-unit commitment and had counted 43 units toward it at the time of that report, with staff recommending a 250-unit commitment for the next cycle.
Pueblo's overall housing production — 1,101 units permitted since 2021 — reflects a city working through a much larger county-wide shortfall. With the statewide filing deadline for new three-year Proposition 123 commitments set for November 1, local jurisdictions across Colorado are making similar calculations about how much growth they can credibly commit to without losing access to state funding.
