September 7, 2017

Shortage on construction laborers impacting development and real estate

By now you’ve probably know that Colorado’s population is growing exponentially. You’ve also probably heard that housing affordability is a problem.  Mayor Hancock has developed an action plan to fix the problem. What you may not know is that one of the contributing factors to this problem is the shortage on construction laborers impacting development and real estate.


The Root of the Problem

In 2008, many construction workers were laid off during the recession and they haven’t returned to the industry since then. Furthermore, those that remained in the industry have aged out of the workforce. Also, the reinforcement to high school graduates to get a college degree doesn’t help the problem. For those that are working through Colorado Homebuilding Academy, they just can’t join the workforce fast enough. 


How it Affects the Public?

Back to the Housing Affordability problem. New builds are on the rise, but they aren’t being completed fast enough to help solve the Housing Affordability problem in Denver. Additionally, with high demands and a competitive buyers market, the cost of building has increased, which has made the supply for first time home-buyers even tighter.  This shortage on construction workers affects retail, office buildings, malls, and roads too.


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Sierra Pacific Mortgage Company, Inc.

Sierra Pacific Mortgage NMLS# 1788. Michael Shotnik NMLS: 218281, CO License: 100017466. Not licensed in Alaska or New York.  To check license status of mortgage loan originator, visit D.O.R.A. and NMLS consumer access.