I was asked a question by one of my readers, what will legalized prostitution mean for Colorado real estate prices? If you haven’t seen it, there is a new senate bill to legalize prostitution in Colorado by promoting “commercial sexual activity”’; the proposal goes further than Nevada. (No this is not a joke, here is a link to the senate bill) What does the new bill mean for real estate prices in Colorado and cities/towns throughout the state?
What is in the senate bill in Colorado on legalizing prostitution?
The bill requires the statewide decriminalization of commercial sexual activity among consenting adults. It declares that decriminalizing commercial sexual activity among consenting adults is a matter of statewide concern and expressly preempts statutory or home rule city, town, city and county, or county ordinances, resolutions, regulations, or codes criminalizing commercial sexual activity.
The bill repeals the state criminal offenses of prostitution, soliciting for prostitution, keeping a place of prostitution, patronizing a prostitute, and prostitute making display. It also repeals the offense of pandering when it involves knowingly arranging or offering to arrange a situation that permits a person to practice prostitution. The bill maintains current state criminal penalties for pandering that involves menacing or criminal intimidation and for pimping, but it changes terminology in those offenses by replacing “prostitution” with “commercial sexual activity”.
In essence, the bill proposes a legalization of prostitution and “business” places of prostitution throughout the state and preempts any city or towns from not following the state law. This law legalizes prostitution, brothels, etc.. in every city throughout Colorado.
Here is what a Colorado Sheriff had to say of the new proposal
The bill mandates statewide decriminalization of commercial sexual activity between consenting adults and declares the issue a matter of statewide concern, preempting all local and home-rule laws regulating or prohibiting prostitution-related activity. This action removes the ability of local governments and law enforcement to respond to the distinct public-safety challenges facing their communities.
SB 26-097 repeals multiple criminal offenses, including prostitution, solicitation, patronizing a prostitute, keeping a place of prostitution, public display for prostitution, and key provisions of pandering related to arranging prostitution. Collectively, these repeals would significantly reduce law enforcement’s ability to intervene in situations frequently intertwined with human trafficking, exploitation, organized crime, drug activity, and violence against vulnerable individuals.
Equally concerning is the bill’s encroachment upon local government, making prostitution policy a matter of statewide concern, stripping cities and counties of local control. Law enforcement agencies understand communities face different realities. What may appear manageable in one jurisdiction can create significant public-safety and quality-of-life complications in another. Local leaders must retain authority to respond to organized crime, neighborhood impacts, and community concerns.
Experience from other states confirms what many in law enforcement already know: where prostitution is fully decriminalized, demand increases. As demand increases, trafficking and organized criminal activity increase alongside it. Legalization does not simplify policing; it complicates investigations and shields exploiters behind legality.
What can we learn from Oregon’s legalization of drugs
The proposal in Colorado reminds me of what occurred in Oregon in 2021 where they decriminalized drug use in the hope of reducing drug use. Long and short Oregon’s drug experiment was an epic fail and should serve as a strong warning to Colorado:
What does the legalization of prostitution mean for real estate prices
Imagine if you owned a house in Denver and now next to you is a “brothel” with prostitution. Under the new law it would be impossible to do anything about it. This would substantially reduce the value of the property.
On the commercial side, what if you were operating a business selling kids clothing and in the adjacent property is now a place of prostitution? Under the law this is considered “commercial” sexual activity so I assume it could be done in a commercial space through the statewide mandate. This would severely impact adjacent businesses and their profitability.
Think about every ski town, imagine if you could now go skiing and also have legalized prostitution. What would this do to towns like Aspen, Steamboat, Vail? These trips would no longer be “family activities” and they will have substantial impact on the ski resorts and the towns they reside in.
Long and short, I don’t think that legalizing prostitution will help real estate prices and there is a much greater risk of downward pressure on prices as crime increases and business locate elsewhere.
Why is prostitution the biggest problem in Colorado?
I assume many of you reading this blog are thinking just as I am. WTF; why is our legislature so focused on prostitution versus insurance costs, the water crisis, etc… essentially anything else is more important than this bill.
On a side note, after i had written and published this blog, it appears the bill was tabled. But, businesses are watching the bills in the legislature and even if they don’t pass this bill is indicative of where Colorado is heading focusing more on far fetched out of touch social policies. Ultimately businesses and residents vote with their feet. We are already seeing this with Denver for the first time in 40 years losing residents. Proposals like legalizing prostitution in Colorado are a bad idea that will ultimately impact real estate prices in Denver and throughout the state.
Thank you to J.A. who asked the question and brought this new bill to my attention. I could not do these blogs without the input from each of you, my readers, alerting me to pressing topics like this. If you have an interesting/hot topic impacting Colorado real estate, email me 😊
Additional Reading/Resources:
- https://leg.colorado.gov/bills/sb26-097
- https://epcsheriffsoffice.com/gazette-op-ed-why-colorado-shouldnt-legalize-prostitution/
- https://coloradohardmoney.com/colorado-statewide-mandate-20-houses-on-any-lot/
- https://coloradohardmoney.com/weinberg-featured-in-denver-post/
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Glen Weinberg personally writes these weekly real estate blogs based on his real estate experience as a lender and property owner. He is the owner of Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
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