We saw this during the bubble. Escalating values on the coasts and CA in particular drove gains in other markets, as young flexible workers simply had to choose other RE markets, in which to live.

I agree that Colorado did not experience the bulk of the bubble. That said, the financial debacle is national, the debt bubble is national, the fact that all those jobs in housing and finance are never coming back–that too was part of a bubble. The bubble was in fact built over 25+ years. It was really just an edifice of debt.

I’m positive on Colorado. But only on a relative basis. In fact it’s much easier to explain the landscape of Denver real estate if one looks back at Denver population over the past 50 years. Denver’s population peaked in 1970, and then declined for 20 years. While the population is now above the 1970 peak of 5.2 million to now reach 5.9 million, that makes for an astonishingly low annualized growth rate.

Bottom line: there is no shortage of housing on the front range. None. It’s madness to build any more supply at this point. Sure, no/limited growth places like Boulder effectively ration supply. But they keep building in the Denver metro area.

I don’t see any upside in front range RE from here. But look, that is gonna look “good” compared to the final 20-40% down move places like Calif have to endure.

-The Kid