Earlier this year, Colorado was ranked the second worst in the country — after California — for housing shortages, coming up 100,000 homes and apartments short of need. This deficit has contributed, in part, to a steep decline in housing affordability for Coloradans. Skyrocketing assessment values have created soaring state property taxes, leaving affordable housing less and less attainable for seniors, young families and middle-class Coloradans. This includes renters, who ultimately pay the rising taxes.

The demand for rental properties in Aurora and across the Denver metro area is high. In fact, Aurora is ranked as the top housing market in the entire state for developers looking to invest. Developers want to invest in our cities. Renters want to find a place to rent in our cities. But surging property taxes during the next decade and beyond present a challenge to both developers and renters alike.

This November, renters will have a chance to pass two proposals to reasonably curb the out-of-control property tax increases. Initiatives 108 and 50 will cut and cap property taxes, providing tax relief for homeowners and renters. If nothing is done, Coloradans will see an estimated 50% increase in property tax bills by 2036, which will climb to an untenable 95% increase by 2045. People are already struggling to make ends meet, and this steep climb is only going to squeeze renters, putting affordability further and further out of reach.

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A “yes” vote on the property tax measures shifts taxes to a more level, sustainable increase. We know the values of multifamily housing will continue to rise over the years, but a steady, reasonable increase is more sustainable than the sharp increase headed our way.

Property taxes are a cost of doing business for every Colorado rental housing provider that are ultimately paid by renters. When a renter pays rent at the beginning of each month, a portion of the total rent goes to property taxes, which in turn support the community through financing for schools, teachers, emergency services and other important local needs.

For every $1 paid by renters, 6 cents goes toward Colorado property taxes. Renters are paying their fair share of taxes to support the communities in which they live, but if Colorado does not reform property taxes, that amount is sure to rise, putting the possibility of affordable rental housing further and further out of reach.

Though there have been attempts to curb property taxes in recent years, each has fallen short of common sense reform. The 2020 repeal of the Gallagher Amendment, a voter-approved property tax formula that restrained property tax increases on homeowners but sent business property taxes soaring, left Coloradans without any meaningful tax limitation structure. This, along with the surge in home and rental values, has led to rapid escalation of property taxes. In fact, property taxes hit a record high this year, leaving Colorado homeowners and businesses on the hook for $3.3 billion more in taxes than last year.

Opponents of this plan will tell you exempting lower value properties will solve this problem. That is incorrect. Renters often live in large communities too valuable to qualify for exemptions, so tenants pay more than their fair share of property taxes. As Colorado builds more and more multi-family housing communities to account for the housing deficit, renters will continue to foot ever-increasing property tax bills with no end in sight.

Colorado’s tax districts will continue to see revenue come through the door. These measures offer responsible increases to revenue — helping to fund firefighters, parks, local services and more — instead of the sharp revenue increases that squeeze Coloradans out of affordable housing options. When property values increase dramatically, property tax collections soar without an accompanying governmental need.

The bottom line is renters need relief. Vote “yes” on these property tax measures in order to provide relief to renters who can keep more of their hard-earned dollars, while at the same time ensuring local districts can afford to continue providing services to their residents.

Andrew Hamrick is general counsel and senior vice president of Government Affairs for the Apartment Association of Metro Denver and the Colorado Apartment Association.