Colorado, like many states across the nation, continues to grapple with a housing affordability crisis. The state faces a shortfall of 100,000 homes and apartments, the second-worst deficit of any state after California. The problem has only worsened due to population growth, combined with outdated zoning laws and restrictive construction regulations.

In 2022, an estimated 264,500 people moved to Colorado. Many of them are from the working-age population, like Generation Z, seeking better opportunities in a state with a strong economy and promising job prospects. But Colorado lawmakers have been threatening both with tech-wary legislation.

House Bill 25-1004 would have outlawed the use of software that does math to recommend rent prices, without any evidence this type of tool caused harm. Colorado lawmakers hastily attempted to pass the bill, which gives the impression the state is unfriendly to the technology industry.

A ban on AI software would directly contradict Colorado’s reputation as a leading technology hub. In 2021, the state’s tech industry generated more than $76 billion in Gross State Product (GSP) and accounted for 9% of the state’s employment. During the last five years, the sector has added nearly 38,300 net new jobs — more than any other major industry.

What’s more, the bill would have exacerbated the state’s ongoing housing crisis. It was a legislative miscalculation that stemmed from the false assumption landlords use the software to artificially inflate prices.

Colorado lawmakers should keep in mind property managers, both big and small, utilize a variety of sources for market intelligence to determine fair rental values for their properties. Without these technologies, the state’s landlords would be forced to guess what their investments are worth, which could skew the market and lead to longer vacancies due to overpricing. An efficient market benefits renters and landlords alike.

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House Bill 25-1004’s overly broad framework would have subjected any individual to costly litigation if they were found to be using AI-powered technology to help determine rents… and that even includes Zillow Zestimate, which would have meant turning the clock back two decades, back to the time before this common price estimation tool was released. Banning AI technologies that help landlords manage their rental properties would have discouraged investors from building the additional housing the state desperately needs. This bill was so broad a landlord could not even use common AI apps to help calculate a fair rental price.

Fighting against the future doesn’t change today. Whether for ride-sharing services or online shopping, AI technologies are already used extensively in Americans’ everyday lives. Without these tools, individuals would miss out on optimal pricing for goods and services which reflects the current market.

In reality, the algorithmic software being targeted by some lawmakers simply provides a reading of market value, like a thermometer gauging temperature. That estimated value is determined by supply and demand at any given point in time, fundamental laws that say if the supply of goods or services outpaces demand, then prices will fall.

The solution to Colorado’s housing affordability crisis lies in the construction of more homes, which can be accomplished by rethinking housing planning requirements and zoning and pushing initiatives that will help builders build. It’s Economics 101 — increasing the supply of rental units will drive down rental prices.

Gov. Jared Polis’ veto of House Bill 25-1004 was just one part of a commonsense housing agenda he has put forward the past few years. From reforming laws around construction defects, to eliminating unnecessary requirements for multiple staircases, to limiting ways local governments can obstruct badly needed new housing, our governor has been a national leader. And, like many Coloradans, I hope there will be more of these commonsense ideas passed into law next year — such as House Bill 1169 which if it had been enacted would have allowed faith-based institutions to build more housing. 

Akilah Graham has lived her entire life in Denver except when attending college at the University of Missouri where she was a star basketball player. Ms. Graham is one of the founders of the Colorado Black Arts Festival.