2018 is expected to be excited, considering the news and the anticipated trends in Colorado`s construction industry.
Specialists consider that residential and commercial trends will be impacted differently this year.
Commercial construction will be focused on multifamily (the prices will be pushed down by cap rates that are expected to rise), retail (some of the older retail sites will start to be redeveloped) and office (offices will become smaller and with more common areas, considering that there is an increasing number of remote workers).
On the other hand, when we talk about residential construction in Colorado, we must differentiate the three markets:
- First, there is the Front Range, situated in Denver-Boulder area. The prices for houses less than $500,000 will continue to increase here, while the more expensive properties will appreciate slower. This reality, combined with rising interest rates, tax policies and mortgages will keep many buyers on stand-by.
- Homes in the mountain communities remain popular, but there is a lack of buildable land here, which translates into high building costs in this area. Although there is great pricing on CanAm buildings to increase your investment.
- Home building in Colorado`s rural areas is expected to stagnate.
Naturally, these predictions may change as we advance in 2018, but there is an overall economic optimism in Colorado that will keep driving the construction market.