2013 Midyear Economic Outlook
Businesses face a delicate balance due to outside economic influences
Job growth in Metro Denver was strong through the first half of 2013, as the region added jobs at a faster rate than in both Colorado and the nation.
The Metro Denver Economic Development Corporation’s (Metro Denver EDC) Midyear Economic Outlook report includes national, state, and regional projections in key economic indicators such as employment, unemployment, retail sales, home sales/costs/construction, and commercial real estate.
2013 Midyear Economic Outlook - Key Indicators
|METRO DENVER||2011||2012||2013 (e)
|Employment Growth Rate
|Office Direct Vacancy Rate
|Industrial Direct Vacancy Rate
|Retail Direct Vacancy Rate
|Consumer Confidence Index -
|Consumer Price Index Change -
|Metro Denver Real Retail Trade
|Residential Home Sales
|Residential Building Permits
|Median Home Price
|(e) = estimated
According to Patty Silverstein, author of the forecast and chief economist for the Metro Denver EDC, the region has several advantages supporting a sustained stronger and earlier recovery than many other metropolitan areas:
- Metro Denver’s housing market has been more stable than other markets nationwide, and recent statistics point to strong home sales growth and rising prices.
- The region’s commercial real estate markets are also in a better position than markets elsewhere, partly because of sustained business interest and partly because of more restrained development prior to the downturn.
- Metro Denver's healthy economy and attractive business environment continue to earn the region accolades. For example, Forbes recently ranked Denver as the sixth-best U.S. city for business and careers.
- Business rankings such as this attract the attention of potential new residents, as data from the U.S. Census Bureau show that Denver was the 11th ranked city in terms of the number of new residents added to the population between July 1, 2011 and July 1, 2012.
“Colorado is outperforming the nation when it comes to adding new jobs,” said Silverstein. “From 40th in the nation for job growth in 2010 to 4th in 2012, Colorado is one of just 15 states that has reached full economic recovery in adding back all jobs lost during the Great Recession.”
Additional highlights from the report:
- After losing 68,000 jobs in 2009 and 2010, Metro Denver added 62,000 jobs in 2011 and 2012.
- With increased economic momentum thus far in 2013, Silverstein anticipates employment to increase by 3 percent this year, resulting in the addition of 42,400 new jobs.
- Throughout 2012, about 2.04 million square feet of office, industrial, and retail space was added in the region. Metro Denver has already surpassed this number in the first half of 2013, adding 2.06 million square feet, with an additional 1.3 million square feet currently under construction.
- About 55,000 home sales are expected to be recorded in Metro Denver in 2013, the highest level on record.
Silverstein cautioned, however that businesses face a delicate balance as the state and regional economy move forward.
“Challenges to the national economy such as global economic uncertainty, rising interest rates, rising inflation, and instability in taxes, healthcare costs, and government spending will continue to confront businesses,” Silverstein explained.
A full report including national conditions and statewide forecasts is available to Metro Denver EDC investors.