Builders Struggle to Meet Demand for Denver Homes
The Denver real estate market is booming, and the demand for new Denver homes continues to rise as the market makes strides toward a full recovery. According to an economist of the National Association of Realtors, home sales in Denver have increased 10 to 12% this year.
In spite of the good news, experts warn that a market imbalance may soon occur if the demand for Denver homes continues to exceed the supply. In particular, the demand for new homes outpaces construction, yet builders are struggling to meet buyers’ needs due to inability to finance new projects.
Experts also predict that federal budget cuts may impact Denver’s reputation as an emerging hub of innovation and tech-related industries. Denver has experienced modest economic growth, but many local companies in sectors such as clean tech and bioscience will lose funding if the new budget is passed on January 2, 2013.
Denver’s lack of new homes and apartment buildings impacts young professionals moving to the area the most; they are looking for affordable living near new public transportation options, but are unable to pay a premium for existing real estate in prime locations. Many real estate experts believe that growth in downtown Denver will be impeded by the lack of housing options if young people struggle to find affordable housing with attractive amenities.
It’s important to get Denver real estate and mortgage news on time. If you subscribe to receive our weekly updates, you’ll be able to easily stay informed of the latest news that is relevant to your needs!