Construction in Denver has been strong in recent months, although not as strong as its peak of late 2021. The last census revealed that one in five residents moved to Denver within the last ten years, and this kind of growth simply is not sustainable.
The cost of living has steadily increased over the same period, while new developments inch closer and closer to the mountains. We expect the market to see modest declines as residential construction catches up with the area’s population growth. It should be noted, however, that the Denver market has consistently outperformed our forecasts. Doing so again is certainly a possibility.
Residential construction here swelled as new people moved in. Nonresidential construction has slowly increased since 2022, as the area pivots from housing to schools, offices, and shopping centers. However, in the years ahead, we expect the growth to come from the education, healthcare, and infrastructure sectors. Now that people have houses, they will need schools, medical care, and a way to get around the city. Most of Denver’s population growth has occurred outside of the city itself. Officials now must shift spending towards tying these disparate communities together. To that end, highways and commuter rail should be a priority in the coming years.
* Other structures include religious buildings, amusement, government communications, and public recreation projects.
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