I am reading THIS ARTICLE in the Denver Gazette and must admit a little glee about the demise of Denver’s Prop 2R.
Denver’s Proposition 2R is a classic case of politicians thinking they can tax their way out of a problem they helped create. Mayor Johnston’s plan to hike taxes for “affordable housing” was about as popular as a skunk at a garden party, and for good reason. Even in a city that leans left, voters saw through the charade and gave it a resounding “no.”
Let’s break it down: the housing market operates on supply and demand. When supply is strangled by red tape, zoning laws, and exorbitant fees, prices skyrocket. Instead of addressing these root causes, the mayor thought throwing more taxpayer money at the problem would magically fix it. Spoiler alert: it won’t.
Denver’s zoning policies are a prime culprit. With 77% of residential land dedicated to single-family homes, there’s little room for the denser, more affordable housing options that could alleviate the crisis. Add to that a permit approval process that averages 206 days for major multifamily projects, and it’s no wonder developers are hesitant to build. (Common Sense Institute)
Instead of concocting new taxes and government programs destined for the bureaucratic abyss, Mayor Johnston should be engaging with developers and home builders to identify and eliminate the obstacles hindering new construction. High-impact development fees and restrictive zoning laws are stifling growth. By streamlining these processes and reducing fees, the city could encourage the development of more housing, thereby increasing supply and naturally bringing down prices.
But no, it’s easier to propose a tax hike and slap a feel-good label on it than to tackle the hard work of regulatory reform. The voters saw through this smokescreen and rejected Proposition 2R, sending a clear message: stop taxing us to death and start fixing the actual problems.
If Mayor Johnston is serious about addressing Denver’s housing affordability crisis, he needs to roll up his sleeves and dismantle the regulatory barriers choking the housing market. Until then, no amount of tax dollars will solve a problem that government intervention helped create in the first place.
