State Associations and Agencies

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Denver, CO housing market projected to grow in 2011

Metrostudy Report - (Denver, CO– May 1, 2011) The Denver market will grow in 2011, a strong reminder that Denver builders must be planning for the immediate future, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

Denver’s current employment estimates indicate that payrolls have continued their growth trend by adding +11,400 jobs from last March’s, which amounts to a 0.85% annual growth rate.

Despite the fact that the tax credit is fully behind us, there were 3,556 annual housing starts for 1Q11, an increase of +11% over the 3,198 annual starts for 1Q10. Builders also closed 978 units in the first quarter, an increase of +5% from the 928 closings in 1Q10. This was the first quarter-over-quarter increase in closings since 1Q06.

“Metrostudy believes that the 5-year decline in closings has begun to finally level off,” said John Covert, director of Metrostudy’s Colorado division, “and that the annual closings pace will remain around its current level through the remainder of 2011.”

Traffic is up 47% through the first 3 months of the year compared to last year when first time buyers were flooding the market in search of a home before the tax credit deadline. “Granted, builders were converting a much higher percentage of traffic a year ago,” Covert said, “but this may be the best indicator of all that homebuilding will grow again, maybe sooner rather than later.”

About Metrostudy
Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data for approximately 70% of the United States housing market, the company is recognized for its consulting expertise regarding real estate development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit www.metrostudy.com.

For information contact:
john covert @ 720.493.2020 x 201
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