Housing availability continues to be one of the most defining challenges across San Miguel County, and a recent county-led housing code update highlights just how complex—and consequential—this issue has become. With nearly half of the local workforce commuting more than 25 miles and an estimated need for 1,100 additional housing units by 2030, the county is actively examining how land-use regulations may be unintentionally limiting new housing development in unincorporated areas.

To address this, the county launched a comprehensive land use code audit and convened a Stakeholder Strategic Roundtable made up of property owners, developers, local workers, and infrastructure planners. Their goal: identify regulatory barriers that increase costs, slow approvals, or restrict housing types—and find ways to streamline the process while preserving community character. These housing policy discussions tie directly into current Telluride real estate market conditions, particularly around inventory and long-term value.

One of the most significant discussions centers around Colorado’s Proposition 123 “Fast Track” standards, which incentivize expedited review for housing projects that include affordable units. The county is currently on track to meet state deadlines, a key requirement for maintaining access to planning grants that help fund this work. Notably, stakeholders supported adjusting Area Median Income (AMI) thresholds upward—settling on 120% AMI for rentals and 200% AMI for ownership—to better reflect the realities of a rural resort economy like ours. For those considering buying a home in Telluride, understanding how housing policy shapes supply is an important part of long-term planning.

So why does this matter to Telluride buyers and sellers? Regulatory changes can influence Telluride home values, particularly as surrounding communities adjust housing density and approvals.

For sellers, housing policy directly affects land values, development potential, and long-term market stability. Regulatory changes that allow more housing density or faster approvals in surrounding areas can influence demand patterns, pricing pressure, and future inventory—especially for workforce and middle-income housing.

For buyers, particularly those investing long-term, these updates signal how the region is planning for sustainability. A healthy housing ecosystem supports the local workforce, strengthens the year-round economy, and protects the lifestyle that draws people to Telluride in the first place.

My local takeaway: this process isn’t about overdevelopment—it’s about thoughtful calibration. San Miguel County is attempting to balance housing needs with limited land, infrastructure constraints, and the preservation of community character. For anyone considering buying or selling in Telluride, understanding these policy shifts is essential. Real estate here has always been shaped as much by planning decisions as by natural beauty—and staying informed is part of protecting both your investment and our community’s legacy.

Telluride News – Jan. 30, 2026 – County continues housing code discussions

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