Working with consumers, whether buyers or sellers, I am often asked about or hear reference made to “the real estate bubble” that they believe grips the Front Range and Denver Metro Area. It’s easy to see why. Prices have been rising rapidly, whether you’re buying or renting the property in which you live. Competition is frenetic in some areas and at lower price points generally. And some sellers are trying to take advantage of that with unreasonable demands.
The reality, however, is simple supply and demand. As this story and accompanying graphic make clear–“more people than places.” We’re simply not building enough housing for the population growth we’re experiencing. We haven’t been for awhile, and there’s little chance we’ll build our way out of it to a sufficient degree any time soon. Prices will likely moderate to a degree because people only earn so much. But, the scramble for housing and upward pressure on prices is likely to continue for the foreseeable future.