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Denver Economic Outlook

During the past two decades, the greater Denver metropolitan area has experienced a strong economic diversification. Diverse industries in Denver now include energy, bioscience and aerospace. Compared to national job growth, the Denver metropolitan area has exceeded national averages. In 2007, the state as a whole was ranked number three for creating new companies.

This is not to say that the area has been completely immune to national economic swings, particularly the downturn that followed 9/11 on the high-tech front. Unlike other areas; however, Denver managed to rebound quite well and between 2003 and 2007 actually added 102,000 new jobs.

Consumer confidence levels in the Denver area also remain strong despite negative trends in home prices, foreclosures and building permits around the nation. Consumer spending contributes 70% to total economic activity in the Denver metro area. Throughout much of the year, total retail sales in the area increased by 95. Suburbs such as Broomfield, Adams and Boulder experienced the strongest year to date sales gains through August.

The competitive edge in Colorado has also played a strong role in the development and expansion of the area economy. According to national polls, Colorado ranks fifth in its ability to support knowledge based economies. The polls take into consideration human capital, the public education system and the ability for research and development. This means that the state on a whole is believed to offer far more competitive advantages for incoming knowledge based industries; a fact which is certain to lead to even more job growth and creation in the coming years. Denver's position as a center for business and economic matters in the state which provides it with an excellent position to take full advantage of such opportunities.

Many area experts believe that these trends, including the high confidence level of consumers and residents, indicate that the area may have seen the worst of economic challenges and is in fact headed toward an even stronger economy.

In viewing the Denver real estate market, this certainly may seem to be the case. Unlike many other areas of the country, Denver was able to largely miss many of the negative downturns in home prices and sales. Denver apartment rentals, single family homes and luxury homes in particular have remained quite solid in the market. Existing home sale prices have actually increased by 3% while the number of homes sold has also experienced an increase. Some areas of the city have remained on such solid footing, that homes are continuing to demand not only full asking price but in some cases, above asking price.

Overall, strong consumer confidence levels, increased levels of job growth and a stable real estate market have positioned Denver in a strong economic situation.