Colorado Population Growth
With the release of the 2020 Census results, we see a rapid increase in the state’s population, particularly in Northern Colorado. Eric Thompson from Windermere Local explores this sudden Colorado population growth, focusing on the Front Range and Metro Denver, and explains what that means for potential buyers.
The total population of Northern Colorado (Larimer and Weld counties) is just around 700,000 people, according to the 2020 Census results. Over the past decade, that’s nearly 2.5% growth, compared to the total Colorado population growth of around 1.5%. While Metro Denver grew at about 1.6% these past ten years, Northern Colorado seems to be the next booming area in our state.
Colorado Population Growth Projections
If we predict a Northern Colorado population growth rate slightly less than the present rate, around 2% instead of the current 2.5%, we can expect to see about 15,000 new residents per year over the next decade. Metro Denver, at a rate of 1.5%, will see a total of 450,000 new residents over the next ten years. This increase is reflected in the housing market already, but what does it mean for real estate in the upcoming years?
The main takeaway from this data is that new residents will need housing. As a rule of thumb, we can expect the average number of people per household to be 2.5. If we run with that expectation, Northern Colorado will need 60,000 more housing units over the next ten years, while Metro Denver will need roughly 182,000.
While our market has shown the ability to produce at this rate – this is roughly what was being built in 2005 and 2006 – we already live in an undersupplied housing environment. To keep up with the influx of residents, the solution is simple: We need to pick up the pace with construction so it matches growth. Supply is already not keeping up with demand, so to layer in the fact that Colorado is very popular and growing quickly suggests we won’t be able to keep up in the future. This can be expected to have a long-lasting effect on the housing market.
Are you curious to know more about Colorado population growth and what the California Effect has done to your property value in today’s market?