Denver Rent Stabilization Act

The Problem

Denver renters have no protection against arbitrary rent increases. A landlord can raise your rent by $200, $500, or $1,000/month with nothing more than 60 days notice. There is no limit, no justification required, and no recourse.

The result: Denver rents climbed roughly 85% between 2010 and 2019 and kept rising through the early-2020s boom. A wave of new apartment construction has since cooled the market - the average apartment rent was about $1,910 as of August 2026, down roughly 2% year-over-year, with a one-bedroom averaging about $1,717 (RentCafe, 2026). That softening is welcome evidence that supply matters, but it comes off a historic peak: families have already been priced out of neighborhoods they’ve lived in for generations, and the workers who serve Denver - teachers, nurses, restaurant workers, bus drivers - still struggle to afford it. Nothing in current law stops the next upswing from erasing these gains.

Colorado state law (CRS § 38-12-301, enacted 1981) prohibits local rent control. Multiple repeal attempts have failed - most recently HB23-1115, which passed the House 40-24 before being killed 4-3 in a Senate committee by a single Democratic defection. Denver must be ready to act the moment preemption is lifted - or pursue a state ballot initiative to repeal it directly.

What Denver Currently Does

Denver currently has zero rent stabilization protections. Colorado Revised Statutes § 38-12-301 preempts all local rent control ordinances. Four repeal attempts have been introduced since 2019 (SB19-225, HB23-1115, and bills in 2024 and 2025 sessions) - all have failed. HB23-1115 came the closest, passing the full House before dying in the Senate Local Government & Housing Committee on April 25, 2023. Governor Polis has publicly opposed rent control, but is term-limited and leaves office January 2027.

Denver rents rose approximately 82-85% between 2010 and 2019 according to Zillow Observed Rent Index (ZORI) data for the Denver-Aurora-Lakewood MSA and apartment market reports, then climbed further during the 2021-2024 boom. As of mid-2026 the market has softened: a construction-driven supply surge pushed metro vacancy to roughly 7.5% - its highest in 16 years - and the average apartment rent eased to about $1,910 (down ~2% year-over-year), with a one-bedroom averaging ~$1,717 (RentCafe, 2026; Apartment Association of Metro Denver, 2026). This is not a contradiction of the case for rent stabilization - it shows that abundant supply and anti-gouging protections work together. Stabilization caps the spikes; supply lowers the baseline. Denver has roughly 150,000+ rental units (American Community Survey, 2022), and over 50% of Denver residents are renters.

The State-Level Roadblock

The 1981 preemption (CRS § 38-12-301) is the single biggest legal obstacle to rent stabilization in Denver. Here’s the recent legislative history:

Key allies: Rep. Javier Mabrey (D-Denver), Rep. Jennifer Bacon (D-Denver), Sen. Julie Gonzales. Key obstacle: Governor Polis (term-limited 2027). (Sen. Sonya Jaquez Lewis, previously listed here, resigned from the Senate in February 2025 amid an ethics investigation and was convicted in January 2026 of attempting to influence a public official and forgery; she holds no Senate seat.)

Our Solution

The Denver Rent Stabilization Act

Annual increase cap: Rent increases limited to the lesser of CPI (Consumer Price Index for Denver-Aurora-Lakewood) or 3% per year. Period.

No vacancy decontrol. This is the single most important provision. Most US “rent control” laws allow landlords to reset rent to market rate when a tenant moves out. This creates a perverse incentive to push tenants out. Under our plan, the cap follows the unit, not the tenant. If rent is $1,500 when one tenant leaves, the next tenant’s rent starts at $1,500.

Universal coverage. Applies to ALL rental units in Denver, regardless of building age, size, or type. No exemptions for new construction (after a 15-year initial window to allow developers to recoup costs), no exemptions for single-unit landlords, no exemptions for luxury units.

Just cause eviction. Landlords can only evict for:

• Nonpayment of rent (with 30-day cure period)
• Material lease violation (with cure period)
• Owner move-in (verified, with relocation assistance)
• Building demolition/major renovation (with right of return at same rent + relocation assistance)
• Criminal activity on premises (conviction required, not mere allegation)

Relocation assistance. Any no-fault eviction (owner move-in, demolition, renovation) requires the landlord to pay 3 months’ rent as relocation assistance.

Enforcement. Create a dedicated Rent Stabilization Office within the city, staffed with investigators who respond to tenant complaints, audit landlord filings, and impose penalties for violations. Penalties: $1,000-$10,000 per violation, treble damages to affected tenants.

Commercial rent stabilization. Extend protections to small business leases under 3,000 sq ft. Denver’s small businesses - restaurants, bodegas, barbershops - are being displaced by the same forces displacing residents.

International Evidence: This Works

The US is the outlier. Most wealthy democracies regulate rent in some form. The “free market” approach to housing is an American experiment - and it’s failed. Cities that rely purely on the market consistently develop housing affordability crises. Cities with strong rent regulation have more stable, affordable housing - though regulation alone is not sufficient without supply investment.

Why No Vacancy Decontrol Matters

This is the policy detail that makes or breaks rent control. Here’s why:

With vacancy decontrol (the weak model):

• Landlord has unit rented at $1,200
• Can only raise rent 3%/year while tenant stays
• Tenant leaves (or is pressured to leave)
• Landlord resets rent to $2,000 market rate
• Result: Landlords are incentivized to push tenants out

Without vacancy decontrol (our model):

• Landlord has unit rented at $1,200
• Can only raise rent 3%/year
• Tenant leaves
• New tenant’s rent starts at $1,200 (or $1,236 with annual increase)
• Result: Landlords have zero incentive to push tenants out. Stability.

Every city that has implemented rent control with vacancy decontrol has seen it gutted over time. We won’t make that mistake.

How We Pay For It

Rent stabilization costs the city almost nothing to implement. It’s a regulation, not a spending program.

• Rent Stabilization Office: $3-5M/year for staff, enforcement, and administration
• Funded by: Registration fees ($50-100/unit/year) paid by landlords. At 150,000+ rental units in Denver, this generates $7.5-15M/year - more than enough.

Frequently Asked Questions

“Won’t rent control reduce housing supply?” The Stanford study that rent control opponents love to cite (Diamond et al., 2019) studied San Francisco’s rent control with vacancy decontrol. Landlords converted rentals to condos to escape the cap. Our plan has no vacancy decontrol - removing that incentive entirely. Additionally, the most comprehensive meta-analyses show that well-designed rent control reduces displacement without reducing supply when paired with construction incentives.

“Landlords will stop maintaining buildings.” The act includes habitability enforcement and allows landlords to petition for above-cap increases specifically for capital improvements (new roof, new plumbing, etc.) - but not cosmetic upgrades. This is standard in functioning rent control systems worldwide.

“This will hurt small landlords.” A 3% annual increase is sustainable for any competently run rental property. If a landlord’s business model requires 8-15% annual rent increases to work, that’s not a sustainable business - it’s speculation at tenants’ expense. For landlords carrying mortgages: mortgage payments are fixed (or adjustable within known parameters), while a 3% annual rent increase compounds year over year. A unit renting at $1,500 today reaches $1,740 in 5 years and $2,015 in 10 years at 3% annual increases - well above typical mortgage payment growth. Landlords who purchased recently at peak prices with high-interest loans face tighter margins, which is why the act allows petitions for above-cap increases tied to documented capital improvements. The registration fee is minimal.

“The state won’t allow it.” Colorado’s rent control preemption is a political choice, not a constitutional one. We push for repeal at the state level while building the local coalition to implement immediately when preemption lifts. If necessary, we pursue a state ballot initiative. Governor Polis, who opposes rent control, is term-limited and leaves office in January 2027 - the political window is opening.

Our Multi-Track Strategy to Lift the State Ban

The 1981 preemption (CRS § 38-12-301) is the single legal obstacle blocking Denver’s Rent Stabilization Act. We’re pursuing multiple paths simultaneously:

Track 1: Denver Trigger Ordinance (2026)

Pass a Denver rent stabilization ordinance that automatically takes effect the moment state preemption is repealed. This demonstrates political will, creates a ready framework, and pressures state legislators.

Track 2: Amended State Bill (2026-2027)

Work with Rep. Mabrey and Rep. Bacon to introduce a strengthened version of HB23-1115 that addresses the specific objections that killed it - mountain town spillover concerns (add population thresholds), development worries (strengthen new construction exemptions), and vacation rental conversion (add anti-conversion provisions).

Track 3: Statewide Coalition (2026-2027)

Build a multi-city coalition with Boulder, Aurora, Colorado Springs, and mountain towns. A unified statewide demand is harder for the legislature to dismiss than a “Denver issue.”

Track 4: New Governor Window (2027)

Polis is term-limited. Attorney General Phil Weiser won the June 30, 2026 Democratic primary for governor over Sen. Michael Bennet and faces the Republican nominee in the November 3, 2026 general election. A new governor taking office in January 2027 creates the most favorable window for a preemption repeal bill since 1981.

Track 5: State Ballot Initiative (2028 backup)

If the legislature fails again, Colorado’s citizen initiative process lets voters repeal the preemption directly, bypassing both the legislature and the governor.

Take action now: Sign the petition to repeal Colorado’s rent control ban, or text “sign PJZTYT” to 50409. Every signature sends a personalized letter to your governor and state legislators. See all campaigns →

References

• Apartment Association of Metro Denver. (2026). Vacancy and rent report (Q1 2026). https://www.aamdhq.org/vacancy-and-rent
• Apartment List. (2026). Denver, CO rent report. https://www.apartmentlist.com/rent-report/co/denver
• Colo. Rev. Stat. § 38-12-301 (1981).
• Colorado General Assembly. (2023). HB23-1115: Repeal prohibition local residential rent control. https://leg.colorado.gov/bills/hb23-1115
• Diamond, R., McQuade, T., & Qian, F. (2019). The effects of rent control expansion on tenants, landlords, and inequality: Evidence from San Francisco. American Economic Review, 109(9), 3365-3394. https://doi.org/10.1257/aer.20181289
• RentCafe. (2026). Average rent in Denver, CO [Yardi Matrix market-trends data]. https://www.rentcafe.com/average-rent-market-trends/us/co/denver/
• The Colorado Sun. (2026, January 21). Apartments in metro Denver reach highest vacancy rate in 16 years, pushing down rents again. https://coloradosun.com/2026/01/21/apartments-in-metro-denver-reach-highest-vacancy-rate-in-16-years-pushing-down-rents-again/
• U.S. Census Bureau. (2022). Selected housing characteristics [American Community Survey 1-year estimates, Denver County, CO]. https://data.census.gov
• Zillow. (2024). Zillow Observed Rent Index (ZORI), Denver-Aurora-Lakewood, CO metro area [Data set]. https://www.zillow.com/research/data/