A stronger job market and economic recovery boost purchasing power for real estate and demand for rental properties.
Colorado businesses are primed for growth, as now halfway through 2021 signs of recovery from the COVID-19 pandemic are strong, according a new quarterly economic report released by the Leeds Business Research Division (BRD) at CU Boulder and Colorado Secretary of State Jena Griswold.
Positive indications include record gains in the number of new business filings in the second quarter, which grew 25.7% compared to last year, states the Quarterly Business and Economic Indicators report. New business filings are one of the best indications of employment growth.
Colorado’s gross domestic product (GDP) increased 1.4% year-over-year, while personal income and businesses in good standing also rose.
The state also continues to post employment and income growth. Though delinquency filings continued to rise, the pace of increase slowed in the second quarter.
“Colorado is on the road to recovery despite historic economic challenges,” said Secretary Griswold.
“While the latest data is encouraging, we know that the pandemic has deepened wealth and income inequalities in our state and many Coloradans have not seen a return to pre-pandemic normal. As we continue to rebuild from the pandemic, there is incredible opportunity to ensure that Colorado’s strengthening economy is benefiting all communities.”
Employment statewide increased with Colorado Springs, Fort Collins, and Denver outpacing Boulder and Greeley. The state’s job count peaked in January 2021, just before the impact of the COVID-19 pandemic hit.
Unemployment across the state held steady at 6.2 percent and ranked 35th in the country, according to the quarterly report. Employers are concerned about worker shortages, as well as inflation and supply chain constraints.
While Colorado’s labor force growth ranks 23rd in the U.S., labor force participation rate is 3rd strongest in the country at 68.5%.
“The high participation rate indicates many Coloradans are employed or actively seeking employment,” said Richard Wobbekind, senior economist and faculty director of the Leeds Business Research Division.
“This trend could lead to a full jobs recovery from the recession in 2022.”
Noting the positive outlook, business leaders in Colorado showed record optimism in the economy. Compared to a neutral score of 50, the Leeds Business Confidence Index was 67.3 ahead of Q3 and remained elevated looking to the fourth quarter at 65.4.
See the full economic report at: www.sos.state.co.us/pubs/business/quarterlyReports/2021/2021Q2-SOSIndicatorsReport.pdf.
By Tom Kalinski. Tom is the broker/owner of RE/MAX of Boulder, the local residential real estate company he established in 1977. He was inducted into Boulder County’s Business Hall of Fame in 2016 and has a 40-year background in commercial and residential real estate. For questions, e-mail Tom at email@example.com, call 303.441.5620 or visit boulderco.com.