Colorado's economy moderates as housing market rebalances
Economic drivers
Education and Health Services, Government, and Leisure and Hospitality led job growth in 2025. Manufacturing is expected to resume slow growth in 2026, particularly in the food sector. Denver is also seeing significant infrastructure and mixed-use developments, including the Cherry Creek West project and the River Mile.
Housing market right now
Colorado's housing market in 2025-2026 is characterized by increased inventory and longer days on market, shifting conditions to be more buyer-favorable. The median sale price in the seven-county Denver metro area held flat at $575,000 in the first quarter of 2026, consistent with previous years. Attached homes, such as condos and townhomes, continue to face challenges due to rising HOA fees and insurance costs.
Migration patterns
Colorado experienced negative net domestic migration in 2025 for the first time since 2004, with 12,100 more domestic migrants leaving than arriving. However, international migration contributed a net gain of 15,356 individuals during the same period. U-Haul data for 2025 indicates that the number of people moving into Colorado slightly surpassed those leaving, with Denver ranking as the No. 20 growth metro.
Headwinds
Colorado's job growth has been subdued, with some sectors like information, professional and business services, and trade, transportation, and utilities experiencing job losses in 2025. Business leaders express ongoing uncertainty regarding the economic outlook, citing geopolitical concerns and the impact of artificial intelligence on the workforce. A recent study also indicates that Colorado is losing companies to other states, raising concerns about its economic competitiveness.
Key facts
- Colorado's real GDP is projected to rise 2.9% in 2026. (University of Colorado Boulder's Leeds School of Business, December 2025)
- The statewide minimum wage increased to $15.16 per hour as of January 1, 2026. (Colorado Department of Labor and Employment, February 2026)
- Colorado's population exceeded six million in the first half of 2025, reaching 6,012,561 by July 1, 2025. (U.S. Census Bureau, January 2026)
- The I-70 Floyd Hill Project is expected to conclude in 2029, with major construction continuing through 2026. (Colorado Department of Transportation, November 2025)
- Four Colorado cities, including Denver and Longmont, received over $13 million in Transit Oriented Community Infrastructure grants in February 2026. (Southwest Energy Efficiency Project, February 2026)