Denver’s construction market has proven surprisingly robust and has outperformed forecasts throughout 2021. Now, as pandemic trends recede, the market is expected to see a plateau.
In this regard, forecasts have not changed significantly since our previous report. The residential sector remains the largest by a significant margin and makes up more than half of all volume. Commercial and infrastructure are the next largest, as the city is a logistics hub for the Western US. Most of the Denver area’s population lives outside of Denver itself, causing the city to invest in rail lines and highways to bring these communities together.
Denver’s population growth has only accelerated throughout the 2010s. The 2020 census revealed that its population grew by almost 20% over the last ten years, making it one of the fastest-growing cities in the country. These new residents all need houses, schools, hospitals, and roads, and it is surprising that Denver’s construction market looks closer to Chicago’s than Atlanta’s. The 2020s will likely be less active than the 2010s, as the kind of growth that the city has seen in the last ten years is not sustainable. Still, though, Denver has surprised forecasters before. It can certainly do it again.