Colorado Housing Market Essay

Since 2013 the housing market in Colorado has boomed. Most people think it is because of Amendment 64 and the legalization of marijuana, but what those people are not looking at is that no matter the cause of the housing market booming, the supply of housing has decreased significantly. Colorado has no rent ceiling meaning landlords can rent out their properties for outrageous amounts. Even though prices have gone up, demand is still very high. The housing market of Colorado does not follow the normal rules of supply and demand. Usually when supply goes down so do the prices and when demand goes up the prices go down, but not in this situation. In this paper I will talk about the housing market in Colorado. Some general statistics about the

Yes, there may be other states where cost of living is higher, but Colorado’s housing prices are increasing at a very fast rate. In the article Aldo Svaldi wrote, a California housing trends firm that goes by CoreLogic studied housing in our state. In their price index they concluded that the cost of homes in Colorado went up almost 10% from the beginning of 2014 to the beginning of 2015. Along with Colorado the states with the fastest raising housing prices were South Carolina and Michigan. While our three states rose states such as Connecticut and Louisiana either declined or barely rose. CoreLogic estimated that if the prices of homes were to increase at the pace they are now that by the end of the year, they should increase by another 5.1%. Hitting closer to home the Denver/Aurora/Lakewood area prices soared 11.1% in the last year. In the same article Aldo mentions a company that goes by REColorado and their findings on the prices of homes. They concluded that the average price a home sold for in Denver and surrounding areas was about $311,000 in March of 2014, $345,000 in Feburary of this year, and $355,500 in March of this year. This means the value of houses has gone up on average $40,000 in the last year