Colorado Real Estate Journal - December 3, 2014
The Metro Denver Economic Development Corp. recently released the 10th edition of Toward a More Competitive Colorado, its annual benchmark study of Colorado’s strengths, challenges, and opportunities for job growth and economic expansion. The comprehensive study is researched by the Metro Denver EDC’s Chief Economist Patty Silverstein, president of Development Research Partners, and is presented in cooperation with Wells Fargo. Over the past decade, the Metro Denver EDC has analyzed hundreds of data sources to evaluate Colorado’s competitive position against the other 49 states. “The 10th anniversary of TMCC is significant as the report has proven to be invaluable in guiding our economic development strategy and legislative focus,” said Tom Clark, CEO of the Metro Denver EDC. “We utilize each year’s findings to create a business environment where all of the state's companies – especially those in our top industry clusters – can prosper.” This year’s report shows another leap by Colorado in adding new jobs to its economy. The state ranked third highest in 2013 for employment growth, up from No. 5 in 2012. “Contrasted with a dismal 49th place ranking for creating new jobs in 2002, the state has truly cemented its position as a top choice for relocating and expanding companies,” said Clark. According to Silverstein, Colorado’s population growth continues to outpace the nation and nearly every other state. Colorado was the third-fastestgrowing state in 2013, up from sixth in 2012. From 2012 to 2013, the state’s population grew 1.6 percent compared with 0.7 percent nationally, placing among the top-10 states since 2006. “Population growth is a crucial factor in economic competitiveness, since people move to states deemed to have economic opportunity and abundant jobs,” explained Silverstein. “In addition, high rankings for innovation and entrepreneurism create a vibrant business atmosphere in Colorado.” On the flip side, TMCC notes one impediment related to Colorado’s reputation as a leading state in which to live and work – rising housing costs. Findings this year peg Colorado among the top-10 most expensive housing markets. “We view the cost of housing as both a short- and longterm challenge to our economic growth and competitiveness,” said Clark. “As one of the top areas of the country in attracting millennials, we face significant obstacles in assuring they aren’t priced out of our market. Coupled with the legal challenges related to new construction, we’re advocating for increased and affordable housing options for millennials and the middle class.” During each of the past 10 years, the TMCC report has echoed taxes as a continued stumbling block to Colorado’s ongoing competitiveness. A chaotic and unbalanced state and local tax system creates hurdles for companies and citizens. In addition, Colorado’s property tax system – driven by the strictures of the Gallagher Amendment – continues to place significant costs on any type of commercial property. The full report is available on Metro Denver EDC’s website.