Economic Impact Study

HBA of Metro Denver jointly produced our 2014 housing economic impact study with Housing Colorado, Metro Denver Economic Development Corporation, the Piton Foundation and CSU. Below is a summary of the themes and a link to download a PDF copy of the complete report. 

Study Highlights  

Topics that will be discussed in the report include:
The sustainability and strength of Colorado’s current housing market; how Metro Denver compares to other housing markets around the country, and how local trends will impact Colorado in coming years.  With the current pace of out-of-state relocations to Colorado, how the trend may affect the housing market.
Significant short-term and long-term impact comes from all types of housing – thousands of industry related jobs supported, the creation of millions of dollars of income, and consumer spending into the local economy.  Regardless of the price range of the housing, data confirms that the ROI from housing development and rehabilitation is strong. 
In 2013, the year of analysis of this study:
•         The overall economic impact of the home building analyzed in this report was $5.15 billion, 1.7% of the entire gross state product of Colorado. 
•         New home building and rehabilitation analyzed in this report created 81,375 full-time equivalent jobs, more than 2.9% of the entire Colorado labor force, and
•         New home construction and rehabilitation analyzed in this report resulted in new revenues to state and local governments totaling $1.29 billion.  
All types of housing are vital – communities must offer a diversity of housing types to meet all their needs.  Whether there is currently an imbalance and what are the findings that reflect shortages in key housing types, and what strategies communities can engage to encourage more diversity in types of housing. Lower income households, those earning $20,000 per year or less, are most greatly impacted by rising housing costs.  The study indicates that there is a shortfall of over 100,000 homes priced at an affordable level for these households - over 16% of Colorado’s total rental stock. It is a gap that will take over 100 years to eliminate, at current rates of affordable rental housing construction of 823 homes per year.
Why affordable housing is a critical component to healthy, stable communities – what are the market variables that are driving up the demand, and how affordable housing on its own is an economic stimulator. 
The one year combined state and local economic impact of building 823 rent-subsidized multifamily homes in Colorado include:
•         $113.1 million in local income
•         $20.9 million in taxes and other revenues for all local governments, and
•         1,657 full-time equivalent jobs 
The report includes a supplemental study that looks at the fiscal impact that the decline of affordable housing is having on local governments that are home to an increasing number of housing-challenged households. The study specifically looks at Adams County, but it can be inferred that other counties in the state face similar pressures.
* was referenced for the content of this summary.

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