As with every real estate market, there are close linkages between the history of Colorado's real estate market and the past of the economic continuing development of CO. It is for that reason essential to have some understanding of Colorado's economic development in order to comprehend the growth and development of the real estate market. Because real estate markets and the construction business are interdependent, the manner by which real estate markets develop is seriously influenced by the progression of construction activity and the function of public construction.
Colorado's economy began in modern days with the finding of gold in the late 1850s and the state was heavily dependent upon mining and agriculture and the state's economic development was influenced for more than century by the accessibility to natural resources and their output. This has been followed by a move to a high-technology economy which has been made possible by the interesting living conditions which have drawn an exceptionally educated work force.
If you are looking for a Steamboat Realtor, consider using Steamboat Springs Real Estate.com. We have a great property search system that covers all of Steamboat Springs, and our experienced Realtors can help you find what you are looking for!
Fluctuations in construction activity have brought on cyclical breakthroughs in the state's economy. In between 1950 and 1966, the state added almost a million new citizens and approximately 400,000 completely new jobs. This established the need for a significant expansion in both residential and commercial real estate. Residential suburban communities developed over the Front Range and the housing stock for sale in the state increased by 240,000 units or almost 70% in between 1940 and 1966. Shopping malls established in several areas and down-town Denver developed swiftly after many decades of relative quiet.
As the baby boomer generation came of age, they established a heightened demand for housing resulting in a spurt in home construction in the 1960s and the 1970s. Between 1960 and 1980, Colorado added in nearly 500,000 units to its housing stock and the most significant division of growth was multi-family structures. The number of housing unit permits attained an all-time high in 1972 of 64,000 and the availability of commercial real estate grew 300% with the growth and development of 40,000,000 ft. in the downtown area of Denver.
The repeal of measures that that ignited real estate investment opportunities as tax shelters brought about a slump in the housing market in the 1980s when the hot money which had flooded into Colorado markets was redirected to other states and destinations. Office vacancies reached 30% as rentals decreased by half. From 1991 to 2001, the real estate markets got back their strength with the average yearly appreciation of about 8%. This growth dropped to about 3.5% in the time period 2001 to 2007 which was significantly lower than the country wide average. Finally the financial crisis of 2008 lead to a major downturn with considerably reduced sales of residences and price depreciation in numerous places.
No comments:
Post a Comment