Home building contributes to a vibrant economy for both Metro Denver and Colorado
A recent economic study cited Denver’s home building industry as a key factor in creating a healthy and sustainable economy for the metro Denver region and Colorado.
According to a recent 2014 economic impact study conducted by Dr. Elliot Eisenberg, a nationally acclaimed economist and former senior economist with the National Association of Home Builders, home builder members of the Home Builders Association of Metro Denver (HBA) played a significant role on the region’s economic impact.
Eisenberg said, “The benefits of new residential construction and the impacts of residential rehabilitation activity are significant.” The study concluded that:
  • The overall economic impact of home building was $5.15 billion, or 1.7 percent of the entire gross state product of Colorado.  
  • New home building and rehabilitation construction created 81,375 full-time equivalent jobs, nearly three percent (2.9%) of the entire Colorado labor force, and
  • New home construction and rehabilitation construction resulted in new revenues to state and local governments totaling $1.29 billion. 
New home construction has always been a critical part of the overall health of the Denver metro region and broader Colorado economy.  Nothing made that more apparent than the recent recession which began in January 2008 and which caused the collapse of the housing market and many associated sectors of the economy.  Fortunately, the State of Colorado and the Denver metro region have recovered better than the rest of the nation.  As a result, house prices in the State of Colorado are up about 7 percent from their pre-recession peaks. This increase also had a positive impact on employment and revenue that continues to stimulate local economies.  
“All types of housing have a tremendous immediate and long-term impact – thousands of jobs supported, millions in income generated, and reinvestment to create thriving communities,” said Jeff Whiton, executive vice president and CEO of HBA.  “Whether it is through renovation, market-rate single-family or multi-family homes or an affordable product, this data confirms that housing development and rehabilitation is a good ROI for Denver and the state of Colorado at large.” 
Whiton added that affordable housing is a critical component to healthy, stable communities and a major focus for the HBA. Key findings of this study reflect shortages in certain housing types, and identifies strategies builders can use to encourage a greater mix of housing options. It is important to understand the market variables that drive the demand, and how affordable housing on its own is an economic stimulator that should not be overlooked. 
While the housing industry has greatly impacted the Denver and Colorado economies over the last seven years, the need for more housing continues. 


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