By: Jerry Ruta, FMS Bank
COVID-19 quickly made many people realize the limitations of urban life. Cities with higher population densities, like New York, saw more cases and restrictions. Suburban areas give people more space and the ability to socially distance more effectively. Suddenly, for many people the idea of bustling city life was much less appealing than the prospect of a quiet home in the suburbs.
As the economy rebounds and people return to work or search for new jobs, suburban areas are expected to see a boom in people wanting to leave the city. In recent years, Northern Colorado created more jobs at an annual percentage than the Denver Market, according to John Covert, a director at Metrostudy. In March 2020, Weld and Larimer counties reached a peak labor force of 290,000. With increased activity, home prices are rising in Larimer, while Weld county prices have remained a little steadier.
Northern Colorado entered 2020 underbuilt. The majority of the new homes under construction will be single-family homes. The corona- virus hit multifamily homes significantly more than single-family, especially apartments. Sales for these types of units are expected to be down more than 20% this year. Most of these units are purchased as rentals. Robert Dietz, the chief economist for the National Association of Home Builders predicts that there’s a small window where there will be an increase in demand for single-family homes built to rent instead of own.
The pandemic might also leave a lasting mark on home design. People aren’t necessarily looking for more square footage, however they are looking to allocate space to home gyms and offices. Although it was originally forced by COVID, many employers now recognize the benefits and possibilities of employees doing part-time or full-time remote work. With this shift in work, homeowners recognize the importance of having a dedicated office space that allows them be more productive and efficient while at home.
Northern Colorado’s construction industry remained open during the shutdown, however changes in the process were made to make buying and selling homes a safe and enjoyable experience. Virtual tours and private self-tours grew in popularity and will probably stick around as options for viewing homes on the market.
JERRY RUNTA Senior VP Commercial Real Es- tate & Builder Loans NMLS#: 1009125 Cell: (970) 466-9068 jrunta@fmsbank.com
Jerry Runta’s career as a residential and commercial mortgage banker began in 1979. He’s held many executive level positions ranging from big banks to community banks and mortgage banking to working as an entrepreneur. He started at FMS Bank in 2016 and loves the model of developing lasting relationships with customers. He currently serves on the Board of Directors for NoCo HBA and the Colorado Association of Home Builders.