February 2004
There were 1,400 jobs added to the Metro Denver employment base in December, a welcome change following two months of decline. Still, total employment is down by 16,800 positions for the year, a 1.3% decline. Employment is down by 0.8% at the state level, signifying stronger performance that Metro Denver but still lagging the U.S. which posted a decline of 0.3% in 2003.
The unemployment rate in Metro Denver increased in December to 5.8%, up from 5.7% in November 2003 and the same as the rate posted in December 2002. Still, the average annual unemployment rate for 2003 remained at 5.8%, just below last year’s average rate of 5.9%.
Hotel occupancy fell for the fifth month in a row in December, falling from 53.5% occupancy in November to just 43%. Further, the December 2003 occupancy rate was lower than the same month last year when the rate was 45%. The average occupancy rate for the year of 59.5% is 1.3% lower than last year’s average of 60.3%.
Home prices jumped dramatically in January 2004, with the average price of a single-family home rising to $283,134 and the average condo price reaching $289,826. However, analysts point out that the rising prices in January were more due to the mix of properties sold as opposed to pure price appreciation.
The direct vacancy rate in flex buildings continues to increase at a strong clip. The direct vacancy rate increased to 18% in the fourth quarter of 2003, up from 16.9% last quarter. The vacancy rate for flex space is nine percentage points higher than the market segment’s healthiest point in the fourth quarter of 2000 when vacancy was just 9%.
The Monthly Economic Summary provides a snapshot of metro area economic activity, as well as its relationship to national and regional economic trends.