Metro Denver Economy: Robust and Diverse
April 29, 2018 | Buying
The latter is the case when it comes to home prices in metro Denver over the last six years. The robust increase in home values has not occurred in a vacuum. They are the result of healthy fundamentals.
One such fundamental is the strength and diversity of the economy in the Denver area. We can analyze that strength and diversity in a couple different ways.
The first way to appreciate the powerhouse that the Mile-High area economy has become is by looking at economic “sectors”.
The U. S. Bureau of Labor Statistics divides the job market nationally into 11 super-sectors as follows: Professional & Business Services, Wholesale & Retail Trade, Government, Education & Health Services, Leisure & Hospitality, Financial Activities, Natural Resources & Mining & Construction, Manufacturing, Transportation, Information and Other Services.
Those trends are projected to continue in 2018.
In other words, job growth in metro Denver is both broad based (across every industry sector) and strong (at rates that exceed the national averages.
A second way of analyzing economy vitality is via economic “clusters”. Clusters are different than the sectors discussed above. Clusters are related industries in different sectors that combine to serve a particular need.
For example, the Aviation cluster includes aircraft manufacturers (from the Manufacturing sector) and airlines (from the Transportation sector).
In summary, the economy in our Mile-High paradise is (1) Creating jobs at a higher rate across every sector of the economy than are being created in other parts of the country and (2) Is fueled by economic clusters that provide high paying jobs to a large percentage of the area’s residents.
A strong and broad-based economy contributes to rising home prices in a fundamentally healthy way.
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