One question we get asked is: “What drives our current real estate market, and why is there so much demand”? There are many facets to that answer, but historically, the biggest component has been employment in Northern Colorado. It is no secret that Northern Colorado has enjoyed a robust economy for the last few years, and the forecasts claim we can expect more of the same for the foreseeable future.
As a general rule, employment trending higher leads to increased housing demand 12-18 months later. Colorado has been adding 60,000-70,000 jobs annually, and more locally. Larimer County added about 5,880 jobs in 2015 (a 4.3% increase over 2014), and Weld County added about 6,515 jobs in 2015 (a 6.8% increase over 2014). The energy sector in Weld County has slowed, but some of the energy jobs have gone into construction jobs for the new construction industry. University of Colorado Leeds School of Business predicts total job growth for Colorado of 65,100 in 2016, up 2.5%.
The largest private sector employers to date in Northern Colorado are:
1. University of Colorado Health
2. Hewlett Packard
3. Avago Technologies
4. Banner Health
5. Woodward Governor
The industries that seem to be in the “boom” category are: construction, education and health services, finance, insurance and real estate, and there is good growth in the manufacturing sector. In addition, there is good growth in new business formation according to Rich Wobbekind, executive director of the Business Research Division at the University of Colorado Boulder’s Leeds School of Business. He predicts slightly slower growth than in 2015, but still very robust growth in any historical context.