Denver, CO

The Denver market has seen unprecedented growth over the last ten years. The 2020 Census revealed that roughly one in five residents moved to Denver in the last ten years.

This kind of growth, however, simply is not sustainable. We expect the Denver market to slowly decline this year and into 2023 as the residential sector contracts before settling at roughly its 2017 levels. The decline in the residential sector should provide availability of different building elements such as drywall and roofing materials, which should have beneficial cost impacts to other construction sectors. It is important to note that the Denver market has proven to be surprisingly robust and has consistently outperformed forecasts. Doing so again is certainly a possibility.  

Besides the swelled residential construction market in 2022, Denver has also started seeing non-residential construction increase across the entire region. In the years ahead, however, we expect the non-residential sector to decrease and the growth to come from healthcare, education, and infrastructure. Now that people have houses, they will need schools, medical care, and a way to get around the city. Most of Denver’s population growth has occurred outside of the city itself. Officials now must shift spending towards tying these disparate communities together. To that end, highways and commuter rail should be a priority in the coming years. 

* Other structures include religious buildings, amusement, government communications, and public recreation projects.