Colorado has the nation’s 3rd fastest growth rate in job growth and is entering an expansion phase in job growth, says Alexandra Hall, chief economist with the Colorado Department of Labor and Employment. This is an incredibly BULLISH statement from an economist!!! Our job growth rate is averaging 2.71% says Alexandra.
Colorado added 11,000 nonfarm payroll jobs in June and we now have 2,368,300 jobs in our state, an increase of 4,800 more jobs than we had at the beginning of the Great Recession! However, the construction industry is still 40,000 jobs below the peak seen in May 2008. Broomfield economist Gary Horvath is estimating that Colorado will add 55,000 new jobs this year!!!
This is incredibly news for housing as the most dominating factor for housing is jobs, jobs, jobs. More jobs and more job stability cause people to make BIG purchases like homes. These jobs will also cause tens of thousands of people to move to Colorado each year which only increases housing demand and will continue to drive up home prices.
You can’t say a bubble is forming when your economy is adding this many new jobs and so many new people are moving into your state. Jobs and new households being formed are the 2 PILLARS of any real estate market. If this continues I think we could sell 60,000 re-sale homes in 2014 or 2015 in the metro Denver area. This year we are on pace to sell 52,000 re-sale homes which is very close to the pre-recession record.