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The phrase "could be a challenge" is grammatically correct and commonly used in written English.
It is typically used to express the possibility or potential difficulty of a situation or task. Example: "Moving to a new city can be exciting, but it could also be a challenge to adjust to a new lifestyle and make new friends."
Exact(59)
That could be a challenge.
The case could be a challenge for the government.
That could be a challenge with a suspect offensive line.
Navigating right field could be a challenge for Cuddyer.
Offering greater personalization could be a challenge for McDonald's, however.
But persuading players to wear microphones could be a challenge.
That could be a challenge because of his unproven receivers.
That could be a challenge for an aging athlete.
"To accommodate this surge in ridership could be a challenge".
Even with the bonuses, keeping employees could be a challenge.
Finding domestic sources could be a challenge, however.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com