The FINANCIAL -- The Wells Fargo Securities Economics Group has released its latest update on the Colorado economy, titled “Colorado is Helping Drive the Acceleration in U.S. Economic Growth (PDF).” The report shows the Centennial State’s Gross Domestic Product growth has outpaced the nation for the past seven quarters.
“Even with growth ramping up in other parts of the country, Colorado remains one of the fastest growing economies. Economic growth in Colorado is both strong and incredibly broad based,” said Mark Vitner, senior economist for Wells Fargo Securities and author of the report.
Colorado has the fifth-fastest-growing job market in the U.S. over the past year, behind only Utah, Idaho, Nevada and Texas. The state has seen an influx of tech companies from California in recent years and is also home to many rapidly growing start-ups. The growth in the tech sector has helped draw in young college graduates, making the state a magnet for millennials.
One of the consequences of strong economic growth is that housing costs have skyrocketed, especially in Denver and Boulder. Home prices are rising nearly three times faster than income in the Centennial State, affecting affordability. Rents also have outpaced income.
“Affordable housing is in extremely short supply. Housing remains an enormous challenge in Denver and much of the Front Range. Construction has lagged population growth, and much of what has been built has been luxury apartments or high-end single-family homes,” Vitner said.
Colorado has made significant progress into alternative energy. Wind and power projects were put into place earlier in the decade, ranking Colorado seventh nationally for wind energy. The state also has experienced growth in solar energy. However, tariffs on imported solar panels have likely slowed growth over the past year, according to Wells Fargo.
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