CAHB 2026 Midterm Election Re-cap
2026 MIDTERM ELECTION RE-CAP:
As you have likely followed in the news, it has taken a while to reach clarity on a number of races, both for candidates and ballot measures. This is why our recap is slow to reach your inbox.
Colorado voters delivered considerable changes in last Tuesday’s General Election, altering the political landscape at both the state and federal levels. These electoral outcomes could have significant implications for Colorado's homebuilding industry and the larger business community and economy.
Democrats maintained their dominance, retaining all statewide offices, and all in open-seat races. Attorney General Phil Weiser was elected as Colorado's next governor. Jena Griswold was elected attorney general, Jeff Bridges state treasurer and Amanda Gonzalez secretary of state. Democrats also fortified their position in the Colorado Legislature, flipping a handful of Republican-held seats and securing supermajorities in both chambers.
For builders, the election presents both challenges and opportunities. Rumors are rampant that many failed or vetoed bills from past legislative sessions will return. Coloradans also decided to handcuff our tax competitiveness by installing a graduated income tax. Many experts and observers believe this could handicap our ability to recruit new jobs and investment in Colorado, which could chill housing demand even further. The new gubernatorial administration also presents opportunities to work together on reducing regulatory burdens, impact fee reform and, of course, construction litigation reform.
The Colorado Association of Home Builders will continue to serve as the leading voice for the homebuilding industry, continuing our work with policymakers from both parties to advance policies that strengthen Colorado's economy, support job creation and relieve our housing affordability challenges.
Congressional Races
The 2026 midterm elections brought significant changes to Congress, with Democrats regaining control of both the U.S. House and U.S. Senate. Colorado’s congressional delegation also saw substantial changes, moving from equal representation of four Democrats and Republicans to a seven to one Democratic advantage. This political shift will mean divided government for the final two years of President Trump’s term, impacting both the legislative and regulatory environment in Washington, and any potential U.S. Supreme Court vacancies.
Democrat Manny Rutinel defeated incumbent Republican Gabe Evans in the 8th Congressional District, and Democratic Socialist Melat Kiros won the 1st Congressional District seat. In the 4th Congressional District, Democrat Eileen Laubacher surprisingly, even in this election, unseated incumbent Republican Lauren Boebert in Colorado’s reddest congressional district. In the 5th Congressional District, Jessica Killin defeated incumbent Jeff Crank to become the first Democrat elected to represent the district in its history. Republican Jeff Hurd was the lone GOP win, retaining his 3rd Congressional District seat. Representatives Joe Neguse, Jason Crow, and Brittany Pettersen also secured reelection, respectively.
With Democrats controlling Congress and a Republican administration remaining in the White House, major changes to federal law will generally require bipartisan agreement or face a presidential veto. Good thing, housing is a bipartisan issue.
CAHB, in conjunction with NAHB’s BUILD PAC, prevailed in four of seven congressional contests.
State Legislative Races
Democrats strengthened their control of the Colorado Legislature, securing historic supermajorities in both the House and Senate. Democrats flipped seven seats in the General Assembly. While some of the gains were expected, this represents a significant shift in the legislative landscape and will have notable implications for the 2027 legislative session.
With a supermajority, Democrats are poised to advance legislation and override gubernatorial vetoes if they remain united, but caucus cracks were showing in the last couple legislative sessions, and in 2027 there may be even greater distance between the party’s center and left wing. They will also be able to refer constitutional amendments to voters without Republican support. This makes it especially important for our industry to engage early and consistently with legislators and legislative leadership.
As always, regardless of which party holds power, our priorities remain consistent: championing housing affordability, improving our regulatory environment, and strengthening Colorado's economy.
Legislative Leadership:
Last week three of the four caucuses held their leadership elections. Neither the House Republicans nor the House Democrats were without fireworks, and the meetings highlighted the division that still exists within the caucuses and is indicative of the divisions in the parties as a whole. The Senate Democratic caucus meeting was quieter. The Senate Republicans will elect their leadership Saturday, November 14 (current Senate Minority Leader, Cleave Simpson, was tapped by Gov-elect Weiser to be his Agriculture Commissioner). Here is the new leadership:
House Democrats:
Speaker-designee: Jennifer Bacon, Denver
Majority Leader: Javier Mabrey, Denver
Assistant Majority Leader: Jenny Willford, Northglenn
Co-Majority Whips: Michael Carter, Aurora; Matt Martinez, Del Norte
House Republicans:
Minority Leader: Jarvis Caldwell, Colorado Springs (re-elected)
Assistant Minority Leader: Ty Winter, Trinidad
Minority Whip: Carlos Barron, Ft. Lupton
Senate Democrats:
Senate President: James Coleman, Denver (re-elected)
President Pro Tem: Kyle Mullica, Northglenn
Majority Leader: Dylan Roberts, Frisco
Assistant Majority Leader: Katie Wallace, Longmont
Majority Whip: Iman Jodeh, Aurora
Statewide Ballot Measures:
Several ballot measures will have direct and indirect implications for Colorado builders. CAHB took positions on three major statewide measures, opposing Amendment 87 and supporting both Proposition NN and Amendment 82.
Amendment 87 – Graduated Income Tax
The most significant concern for our economy, and thus builders, is Amendment 87, which narrowly prevailed. The measure replaces Colorado's current 4.4% flat income tax with a graduated income tax structure, with rates ranging from 3.7% to 8.4%. It also removes the constitutional requirement that all taxable income be taxed at one rate and directs additional revenue toward K-12 education, healthcare and early childhood programs.
The measure applies to corporations as well as individuals and hits all earners at $500,000 or greater the hardest – meaning it will affect many in our industry. Depending on how a business is structured and its taxable income, the new tax structure could result in significantly higher state income tax obligations. This is particularly concerning for small and mid-sized businesses, pass-through entities and companies evaluating where to locate or expand.
CAHB opposed Amendment 87, along with many business and economic development groups, because of its potential impact on Colorado's business climate and its ability to attract investment, create jobs and compete with other states. At a time when Colorado is already facing challenges with out-migration, business relocations and declining tax competitiveness, increasing the tax burden on small to mid-sized businesses creates additional uncertainty.
With the passage of Amendment 87, the state is projected to receive approximately $2 billion in additional annual revenue. CAHB agrees with organizations such as the Colorado Chamber of Commerce that the state should not pass any other fees or taxes on the business community in the upcoming legislative sessions.
Proposition NN
Voters also approved Proposition NN, which raises the state’s TABOR revenue limit by the amount allocated annually to K-12 education. This was not an easy decision for CAHB, as the change could give lawmakers more room to raise fees under the general fund without triggering additional TABOR refunds. Ultimately, good schools make good neighborhoods, and education funding has been a victim of our state’s financial distress over the last several years.
Amendment 82
Voters declined to pass Amendment 82, which would have conferred the right to purchase and sell natural gas for cooking or heating in homes and businesses. In hindsight, this was a strange measure, and it was a difficult decision for CAHB to support it largely because of its narrow application.
The question of whether we should still be able to use an abundant and cheap resource to energize our homes is an important one. It’s understandable why the proponents brought this measure forward as environmentalists and others on the left continuously try everything but outright gas bans to inhibit Coloradans’ freedoms to choose which energy source is best for them.
However, the proponents were too cute by half – trying to enshrine in our Constitution the right to use only one fuel source – and didn’t execute a great campaign. They also lacked the backing of Colorado’s energy producers.
One wonders if they would have listened to the folks who develop, produce, and convey energy, whether they could have assembled a winning coalition. And whether listening to us, that a right to fuel choice would have agreed with many more voters, may have helped them across the finish line. Ultimately, favoring only one fuel choice, and enshrining that fuel in our Constitution, proved to be a bridge too far for a majority of Colorado voters.
Hopefully the proponent’s hubris and miscalculations don’t further curb our state’s families and businesses ability to access natural gas.
Ballot Issue 7A – Front Range Passenger Rail
Voters within the Front Range Passenger Rail District approved Ballot Issue 7A, establishing a 0.333% sales and use tax to fund passenger rail service connecting Fort Collins, Denver, Colorado Springs and Pueblo. The project could improve regional connectivity, expand transportation options and reduce congestion in the I-25 corridor. At the same time, the measure adds to the cumulative tax burden on consumers and businesses within the district. While CAHB chose to remain neutral on the measure, it is worth noting.
As the district builds out its infrastructure, it could present both commercial and residential development opportunities, much like the Denver metro area saw with the build out of its light rail system. The big question will be whether Coloradans support such a system and whether ridership and fare box revenue can support such a rail line, or whether the state, and taxpayers, will be forced to further subsidize it to survive.
Conclusion
Colorado is entering a new chapter. The election results will bring changes to state leadership, the legislative landscape and the policies that shape our economy and industry. While there are significant challenges ahead, Colorado remains a state with tremendous economic potential, a talented construction workforce and a strong business community with a perpetual entrepreneurial spirit.
CAHB remains committed to ensuring that our members have a meaningful voice in the decisions that affect their businesses, employees and communities. We will continue working with elected officials, policymakers and our members to advance practical solutions that strengthen Colorado's economy and preserve our state's ability to compete, innovate and create housing opportunities.
Thank you for your continued engagement and membership.
Ted Leighty
Chief Executive Officer
Colorado Association of Home Builders