No one is moving to Colorado. So said headlines across the country when U-Haul released the latest national U-Haul Growth index. Colorado had the worst year-over-year drop in the nation. The 40th-place ranking is a colossal fall from 2023, when Colorado ranked ninth in the nation. According to U-Haul, no other state saw a bigger plummet in the rankings this year.

It seems 300 days of sunshine, majestic mountains and unmatched outdoor recreation are not enough. For those of us who love this state; who have chosen to raise children here, and who call Colorado home, the question remains: how did we fall so far? How do we regain our standing?

As a nonpartisan research institute, we believe the answers lie in the data.

Common Sense Institute is about to release its annual Free Enterprise Report. It’s a comprehensive study of how Colorado stacks up across eight policy areas compared with all 50 states — from education to housing to jobs.

Our research perspective is this — just the facts. At Common Sense Institute we also know free enterprise works. Competition makes us better. Free markets allocate resources better than central planners. Individuals make better decisions than the administrative state ever could. A responsible tax policy that funds critical services is vital, but punitive taxes and regulations harm communities. It is in this spirit that we developed the annual Free Enterprise report.

The report includes two indices, the Economic Performance Index and Economic Momentum Index. The indices measure placement among U.S. states for relative competitiveness, performance and momentum. This report is intended to serve as a playbook for economic competitiveness and prosperity.

While Colorado’s economic performance remains strong, competitiveness measured by alignment with free enterprise has fallen relative to other states since 2011, and momentum has slowed. Colorado’s ranking in free enterprise competitiveness has declined 11 spots since 2011. Across all policy areas, Colorado ranked 15th in 2011 and 26th in the current report.

Colorado’s free enterprise competitiveness, once high, has undergone a steady downturn since 2011, from which it is only recently showing signs of improvement. From 2011 to 2017, Colorado’s free enterprise competitiveness slid from 15th to 27th. It slid further through the early 2020s, bottoming out at 32nd in 2022.

Where are we falling short?

The data is clear, and the answers are easy to see: crime and public safety, housing and education.

Crime and public safety. Colorado’s rank moved from 29th to 43rd — far from ranking as a top 10 state for safety. Relative to other states, Colorado is seeing higher crime rates, homelessness and overdose deaths.

Housing. Colorado ranks dead last — 50th. It’s getting harder to afford and rent a home. The Homebuyer’s Misery Index increased in all counties in the latter half of 2023 as mortgage rates increased and housing prices remained out of reach for most Coloradans.

Education gaps. Although standardized test scores have at last returned to and even slightly surpassed pre-pandemic levels, troubling achievement gaps and low proficiency rates persist despite increased funding.

A bright spot is found in the Economic Competitiveness Index. Colorado ranks in the top-10 for four of the six components, and ranks in at least the top 20 for all six components. This performance puts the state second overall in the Economic Performance Index. Among the highlights, Colorado ranks third best among all states and the District of Columbia for poverty and fourth for labor force participation.

As the state Legislature convenes for the 2025 session, the siren call is economic momentum. Much like the ghost of Christmas past, the Economic Momentum Index gives us a forecast for the future if we don’t heed the warnings.

Economic momentum in Colorado has recently deteriorated from the highs seen in 2015-2018. Slowing job creation, lower relative growth in the labor force participation rate and a slight increase in poverty rates after 2020 have all led to diminished economic momentum relative to other states.

Colorado’s growth in the 2010s and the economic boom that followed cannot be taken for granted. As strong as that growth was, it relied on Colorado having a reputation as not just a beautiful place but a thriving one with positive prospects for its residents. Policy can reroute the track to that former reputation.

The good news: 2025 is a new year. Lawmakers have just convened and opportunity is in reach. Read the report, examine the facts and meet the challenge to regain our top ranking. I believe everyone under the Gold Dome is committed to Colorado’s success and at Common Sense Institute, we’re committed to continually providing the data to support that comeback.

Kelly Caufield is the executive director of the Common Sense Institute Colorado.