Jobs, Golf and Colorado Springs Real Estate Market
Interesting how the economy plays such a role in the Colorado Springs real estate market, isn’t it? The Gazette Newspaper (5/29/14) just reported encouraging jobs numbers for Colorado Springs. They also noted a study which laments the lack of affordable housing in Colorado Springs. Perhaps golfers are caught in the middle. A recent statistic reported in the Colorado Springs Business Journal (5/23/14) shows fewer people these days have the money to golf.
The first article, “Economist: Colorado Springs job numbers back to pre-recession levels,” reported new calculations from the Colorado Department of Labor and Employment. Reaching a peak not seen since September 2007, local payrolls reached 262,400 in April 2014. There are now 81,100 more jobs in Colorado Springs than there were six years ago. Sounds like a lot, right? The unemployment rate in April was 7.4 percent.
So more people are able to make a living. How is it, then, that not enough Colorado Springs homes and rentals are not “affordable”? Let’s look at the definition of the term used in the study. The Pittsburgh research organization Mullin & Lonergan Associates Inc. applied this equation:
Units of Colorado Springs real estate priced at 30 percent or less of the monthly incomes of residents
As a measure of income, “affordable” means something different to every household as it varies with income. The article gave some examples of affordability for wage-earners in a few brackets, peaking at $67,000 per year. Most categories find slim pickings for affordable rentals. Colorado Springs does have some nice little cottages and condos for sale with payments that may be more affordable than the rising costs of rents. And it makes more economic sense to purchase real estate than to rent if a person has a stable job and plans to stay put for a few years.
Affordability is also a major factor in the sport of golf. It takes the money to water and manicure those gorgeous fairways and greens. Expenses incurred by purchasing land and maintaining golf courses must be offset by fees and membership income.
The Colorado Springs Business Journal article by Bryan Grossman pointed out the dramatic drop in rounds of golf played in Colorado Springs. For example, Patty Jewett Golf Course registered 107,000 rounds in 2013, down from 170,025 years ago. Similar reductions have an experienced at other area courses including Valley Hi. Grossman reported the drop off for both private and public courses. Golf Digest Magazine, he says, reported a 15 percent drop in golfers nationally between 2007 and 2013 as people work hard to recover lost wealth.
Assistance Buying/Selling Colorado Springs Real Estate
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