Hundreds of regional business leaders from the Denver metro region celebrated economic recovery and discussed ongoing challenges at the Denver Metro Chamber of Commerce’s 2021 State of the City address.

Politicians and business professionals told the group homelessness and housing costs remain barriers for the Denver metro area.

“This past year and a half has not been easy for any of us,” said Kelly Brough, CEO of Denver Metro Chamber of Commerce. “It’s clear our economy is on the way back, though.”

Brough said Colorado regained 79% of the jobs lost during the COVID-19 pandemic, giving the state the 12th fastest private sector recovery in the nation. CNBC ranked Colorado as the 8th best state for business.

Brough said rising costs in Colorado are “concerning.” She said Colorado is ranked 38th for lowest cost of doing business and rising housing costs slid Colorado from 2nd best place to live to 14th in recent years, with the median Denver-area home price reaching over $545,000 last month.

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Englewood and Wheat Ridge mayors emphasized the importance of increasing affordable housing and homeless resources in the Denver metro region during a panel discussion.

Englewood Mayor Linda Olson said her city’s small economy weathered the pandemic due to neighborly business practices and federal assistance. She expressed grave concern about a local crisis triggered by the end of the federal eviction moratorium.

A Census Bureau survey found 40% of Colorado adults were vulnerable to not being able to pay their rent or mortgage next month, 25% of which are in Denver alone.

“I think the next two months are going to be critical,” Olson said. “We’ve got to really focus over the next two months or we’re going to have a major crisis on our hands.”

Englewood is working in partnership with Littleton and Sheridan on plans to create the area’s first homeless shelter, Olson said. Last year, a survey found that Englewood’s school system had 300 families experiencing homelessness, she said.

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Wheat Ridge Mayor Bud Starker said his city launched a navigator program to connect homeless residents to services and is working to diversify its housing stock, increase affordable housing options and expand affordable housing eligibility.

Those efforts align with Denver Mayor Michael Hancock’s State of the City address last month, during which he named addressing homelessness as his top priority during his final two years in office.

On Tuesday, Hancock reaffirmed his commitment to increase homeless shelters including hotel and motel rooms, tiny home villages, managed homeless camps and safe parking spaces.

In addition, Hancock said the city will expand housing vouchers, rental and utility assistance, eviction-protection programs and affordable housing, putting $28 million of federal recovery funds into Denver’s Affordable Housing Fund, pending approval by the City Council.

However, Hancock said housing is not the only solution for homelessness.

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“Our encampments are not just a reflection of a housing problem,” Hancock said. “Our challenge is fueled by a challenge of mental health, mental illness, drug addiction and the opioid crisis. … If we’re going to be effective, we must deal with these issues effectively. We must be honest.”

Hancock emphasized the need for an increase in drug rehabilitation and mental health resources and called on the federal government to do more to help cities address homelessness.

From 2010 to 2017, the number of homeless residents in the Denver metro area dropped from 8,752 to 5,116, according to annual surveys. But since 2017, that population grew, reaching 6,104 in 2020. Of those homeless residents, 1,561 are unsheltered.

“Denver is one of the first cities to roar out of the collapse of the pandemic in terms of recovery,” Hancock said. “We must do everything necessary to keep our community on the path to recovery.”