What Makes Boulder Colo Unique !
For a city of its size, the Boulder economics picture is quite unique. Boulder economics 101 shows that the city has a population hovering around 100,000 for some time now and has 100,000 jobs according to a recent CU Boulder study. Think about this for a moment. There is one job in Boulder for every man, woman and child. By comparison, the metro Denver area has a population around 3 million with about 1.5 million jobs — a 2 to 1 ratio.
There is one job for every man, woman and child in Boulder, Colo
Re/Max Alliance, downtown officeLooking at the jobs in the Boulder economics picture adds additional insight. Approximately 30 percent of jobs are defined as primary or export. What this means is, the companies (big or small) are creating products that are sold, consumed, utilized outside of the city. Big name companies in this category include: Google, IBM, Ball Aerospace, Amgen, Celestial Seasonings.
An upside for Boulder economics is these primary jobs bring a large influx of investment capital, high payrolls, money back into the city.
Another ten percent of the jobs in Boulder are considered “telecommute” or work from home. Some of these are jobs like the jewelry start up located in one’s basement. But others are high paying, high performance executive level positions.
Boulder is equally popular with Millennials just starting out as well as seasoned executives who can literally, “live anywhere in the world.”
Commuting And Boulder Housing
One of the challenges for Boulder is creating more moderate housing for the middle. Today, a large proportion of workers commute into Boulder. It is estimated two thirds of jobs in Boulder are filled by workers commuting to Boulder Colo. The negative here, how do we moderate traffic and congestion? How do we create more housing to meet demand? Permanently Affordable and inclusionary housing are great options for low income buyers, but availability of housing choices for middle income families is a challenge.
The city is working on this issue. The Comprehensive Plan is set for its five year update in 2015. City council is exploring options. Realtors wonder if Boulder economics dictate now is the time for the community to annex ground in Area 2 and add an additional, significant subdivision vs in-fill projects such as Trailhead.
One upside for commuters. There are great options within 15 minutes of Boulder: Louisville, Superior, Lafayette leap to mind. By comparison, residents commuting to Los Angeles have driving commutes of one to two hours.
Detailed Analysis Boulder Employment
Clif Harald, executive director with the Boulder Economic Council explains that Boulder’s overall goal, when it comes to jobs, is retention, not attraction. In a lot of cities, the big news is the latest 500 person company recruited to move to that city. The flip side is when big companies leave, it is equally big (but unfortunate) news. Boulder economics are focused on retention. And Boulder gets a lot of good news in this department! Big, medium and small businesses like Boulder.
The challenge with retention is expansion space and happy employees. There is currently roughly 800,000 square feet of commercial and manufacturing space in the pipeline for approval. Not all of these projects will advance. Contrary to citizen perception, the space is not for attracting new companies, but affording new space for existing businesses to expand.
Boulder Economics reflect an economy that is both robust and diverse. For a city the size of Boulder, this is very unique. Robust reflects the 1 to 1 job to population ratio I mentioned earlier. Diversity in Boulder employment is fantastic. It is not one thing driving the community. There are major employment centers including:
- Aerospace
- Biotech
- Clean Technology
- Green Technology
- IT
- Natural Products
- Outdoor Industry
Add to this research – Boulder government labs and CU Boulder are big contributors to the economy and tourism. Boulder averages over 2.2 million visitors per year, generating $360,000,000 in revenue. In the national news perspective, we always hear about the US import/export balance. Well, locally, Boulder has an incredible export surplus.
City Working For Best Boulder Economics
Liz Hanson, Economic Vitality Coordinator for the City of Boulder, works on the public policy side and on improving city business services. Boulder is working with the community to retain employers. This means helping projects move forward to keep the best companies in town. The city is well equipped for challenges. Consider the flooding of 2013. Boulder’s water utility managed to keep fresh water flowing to consumers during one of the most serious ecological threats to the community. No small feat.
Moving forward, Boulder is actively addressing the housing situation and looking for fresh ideas to address this serious future issue. A Micro Loan program exists to help smaller start up companies acquire capital. Boulder Ice Cream is a great example. Originally a downtown ice cream shop, it is now a brand available in grocery stores. A small local business exporting its product.
Boulder also implements a rebate program. Created in 2007, when Boulder economics indicated a stronger economy (before the housing crash). This is primarily a retention tool. Companies must pay in first through taxes, permits and fees. :The flexible rebates are customized for each company that applies, require compliance with sustainability guidelines, and the amount of the tax and fee rebate (generally ranging from $20,000 to $60,000) is based on a return on investment analysis.
Boulder will also speed along the permitting process and work with employers to address concerns. As the city of Boulder explores municipalization, it is balancing concerns from manufacturers with citizen excitement of opportunity in energy. Believe it or not, it turns out Boulder has a very strong manufacturing core. This business group outproduces the next nearest competitor in similar sized cities by three to one. Companies like Ball Aerospace (with a recent 75,000 square foot expansion) produce high dollar value exports.
Summing Up Boulder Economics
Two out of three Boulder workers live outside of Boulder. A casual survey of agents in my office meeting today suggests about 1 in 2 agents lives outside of town. The town has a community centric approach to retaining jobs. This is Job # 1 for the City, Boulder Chamber of Commerce and Boulder Economic Council. All three entities are working hand in hand, pulling in the same direction.
There are challenges to our community, and the city is addressing these head on. Risks include moderate priced single family housing, transportation to Boulder and avoiding congestion. Boulder is also on the guard against complacency and feeling arrogant. This requires change and growth balanced with not overly changing the rules. Major projects are underway: 30th & Pearl, the Town Center mixed use project in Gunbarrel. Another 800,000 square feet of projects is in the pipeline.
The Boulder council, like a good Realtor, focuses on retention by creating relationships and staying in touch. Programs are resources exist as part of this. For example, the Boulder Public Library has a Business Reference Library with free access to valuable business databases and business plan resources, either at the library or from your computer at home; all you need is a library card.
Finally, the city of Boulder economics folks encourage involvement. There are numerous committees, annual goals and targets and a comprehensive plan that is updated every five years (2015 is the next revision). Last but not least, Boulder is working to create new rules around broadband. Offering one gigabyte rates could really improve the opportunity to work from home. That’s Boulder economics – always evolving to create and maintain a wonderful community.
Moving Forward: Boulder Economics And Growth
I’ve mentioned that Boulder has a phenomenal amount of commercial and industrial space under consideration. The city is also actively pursuing the idea of creating its own electric utility. Doing so will change Boulder economics. If the city succeeds in becoming a utility, it could spur innovation, alternative energy production and allow Boulder Colo to exceed its green energy goals.
The revision of the Comprehensive Plan in 2015 will also be a landmark event for the town. This is the document that directs Boulder’s growth, g0als and community. The city of Boulder has a long history of creating plans to achieve goals. Back in the 70’s, long before it was popular, the Danish Plan was adopted.
Big picture Boulder economics aside, my career is focused on helping families. Pictured here, Josh and Stephanie with his parents in their new home during the inspection!The Danish Plan called for an open space policy as a core component of the city. Today, our community is surrounded by visually beautiful and natural lands. We have avoided many of the perils of overbuilding. However, as a community we need to balance open space with annexation and adding housing. Area 2 is one possibility that the real estate community hopes will be explored.
Believe it or not, Boulder economics has spawned a majority of housing to be attached dwellings in the city. Our population needs more single family homes to meet the changing needs of our population. Remember, Boulder’s #1 goal when it comes to business is retention. As companies become more successful, bigger (more employees), we need housing, services and lifestyle to retain them in Boulder. So far, we’ve succeeded.
Additional Posts For Your Consideration
I write daily on Boulder Colorado. You may enjoy additional posts that contribute to the successful Boulder economics such as a recent story on a public art project. #BotJoy is an interactive mural near Boulder’s Farmer’s Market. Relocating? Read about family night on the mall, Bands on the Bricks or simply some of Boulder’s most popular children’s play parks: The Rock Park or the very different The Rocket park. I write on dining, activities, trails and events around Boulder as well as extensively on Boulder real estate. Every Saturday I publish a report on whats selling.
About the author: The above local Real Estate information on Boulder Economics 2014 was provided by Bob Gordon, a local expert in his field. Bob can be reached via email at 303-443-3334 or at BobGordon303@gmail.com. Bob has been helping people buy and sell real estate in the area since 1995.
Thinking of selling your home? I have a dedication to Real Estate and appreciate the opportunity to share my wealth of marketing expertise!
I service the Boulder Real Estate market including: Louisville, Lafayette, Superior, Broomfield, Niwot, Gunbarrel, Longmont, Lyons, Hygiene, Erie, Frederick, Firestone, Arvada and portions of Denver.
National Publications
Bob Gordon and Boulder Real Estate News quoted in the following National news articles:
- MortgageLoan.com, “10 Ways to Win a Bidding War”
- “8 Home Improvements That Add the Most Value,” WiseBread.com
- US News, “Why you should Try Out A Home Before You Buy It”
- City of Boulder Business Page (*Bob is not part of this one!)