2024 Front Range Mid-Year Real Estate Report
The Slifer Report is our semi-annual Real Estate Report outlining the counties that represent the Front Range. As we reflect on the first half of the year, our report dives into the key trends shaping Colorado’s real estate market. This comprehensive 2024 Mid-Year Slifer Report includes an in-depth analysis of economic performance, real estate behaviors, and demographic shifts, providing insight into the market’s current state and future potential.
Colorado Market Overview
The fundamental strength of Colorado’s economy has shown tremendous resilience this year – our educated workforce and high quality of life – remains a bedrock of stability. As we step into the second half of 2024 and beyond, this resilience not only continues to bolster our confidence in the future but also cements our position as a national leader.
Economic Performance
While current economic forecasts are mixed, most projections suggest Colorado will once again exceed state GDP expectations and grow somewhere between 2.0% – 3.0% in 2024. Should these strong projections materialize, this could represent a trailing 5-year annualized growth rate over 4%, likely ranking Colorado among the Top Ten states for economic growth in the last 5 years. Although the pace of growth has declined in more recent quarters, the sustained increased highlights our status as a national leader in economic performance since the Great Financial Crisis.
Real Estate Behavioral Change
The state’s real estate sector is undergoing significant transformation, driven by evolving work habits and lifestyle shifts. A notable labor shortage remains evident, with Colorado having 52 available workers for every 100 open jobs. For the period of February 2020 to April 2024 Colorado stands with only Texas, Arkansas, Kentucky and South Carolina as the 5 states with +40% increase in job openings since the pandemic according to the US Chamber. The “Work From Home” trend, now normalized at around 26% of the workforce according to the Census Bureau, continues to significantly impact job searches and the office market. This trend contributed to a 30-year high in Colorado’s office vacancy rates which continues to inch higher in 2024 and continues to present risks in both macro and micro-economic contexts.
Inflation and Consumer Sentiment
The Front Range has consistently experienced inflation rates higher than the national average, outpacing it in 11 of the past 13 years, primarily due to the housing market. Similar to welcomed national trends, the Front Range inflation rates are cooling with CPI from May 2023 to May 2024 up 2.6%.
Demographic Shifts
Colorado is amid significant demographic transformations, especially noticeable in the under-18 and over-65 age groups. The state is bracing for a historic demographic shift by 2035, where the over-65 population is expected to surpass the under-18 group for the first time. This change holds profound implications for public policy, particularly in areas of education and infrastructure.
Our History in Navigating Dynamic Landscapes
Since our founding in 1962, Slifer Smith & Frampton has successfully navigated decades of political and economic shifts. From the oil crises of the 1970s to the recent pandemic, we’ve weathered major market downturns while continuing to serve our clients with resilience and expertise.
At the heart of our success are our dedicated agents. They offer expert care and personalized attention, guiding clients through fluctuating markets with deep market knowledge. Choosing Slifer Smith & Frampton means partnering with a team that brings a wealth of experience and a legacy of trust. We ensure stability and success in your real estate journey, offering expert guidance and a personal touch every step of the way. Join us and become part of a story that continues to unfold with each new chapter in the ever-evolving landscape of real estate.
Letter from the President
As we reach the midpoint of the year, the 2024 Front Range Slifer Report reflects on the current state of the market. Recent economic developments, such as the Federal Reserve maintaining interest rates between 5.25% and 5.50%, have influenced both local and national real estate trends. However, there’s growing optimism, as we anticipate potential rate cuts by the end of the summer.
While interest rates have remained high, the 2024 Front Range Real Estate Report reveals that the Front Range real estate market has experienced an increase in inventory, leading to longer days on market. This balanced market dynamic, emphasized in the 2024 Front Range Real Estate Report, is a welcome change for buyers but presents new challenges for sellers.
Looking ahead to the second half of the year, the Front Range Slifer Report forecasts continued strength in Colorado’s housing market. With a projected 5% increase in housing permits and ongoing migration to the state, Colorado remains a desirable destination for homebuyers. We invite you to explore our 2024 Front Range Real Estate Report for more insights into the trends shaping the market.
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