Unemployment rates are a quirky thing…
Too high a rate of unemployment and the economy suffers as those without jobs are unable to make purchases; when unemployment rates are high, the real estate market and many other markets can slump, affecting the entire economy and even those blessed with stable, adequate or better employment.
Industries can also suffer when unemployment rates are too low; employment can fall so low it is difficult to find qualified help.
Such is the case in the construction industry in Colorado. While an ultra-low unemployment level in the industry nationwide is something to celebrate, Colorado’s level of construction unemployment is less than half that of the national level. Add this factor to the ever-increasing demand for housing across Metro Denver, and the result is an industry bottleneck. Homes continue to be in demand in our area, there is not enough supply, and there aren’t enough tradesmen available to add to existing inventory.
According to recent Denver Post coverage of the topic, the lack of a qualified construction workforce threatens to slow the state’s incredible economic momentum. It’s a catch 22 for construction workers outside the state who might consider relocating to Colorado. The likelihood of landing work in the field is high, but in part because of the trickle of new construction, so are housing prices – and availability remains scare.
And so – we wait. Wait for new construction projects including apartments and homes, hotels and business infrastructure, to carry forward inch by inch. Wait for a new generation of able-bodied construction workers to rise – choosing valuable, meaningful work in the trades over a “traditional” college education.
Interested in talking shop – about the building industry, the Denver real estate market or your next home purchase or sale? I’m here to help in any way I can.
The Meyers Group