MARKET PROFILE BOULDER, COLORADO AUGUST 2018
TABLE OF CONTENTS DEMOGRAPHICS • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 7 POPULATION AND GROWTH ............................................ 7 AGE .................................................................................... 8 EDUCATION ....................................................................... 9 ETHNICITY ........................................................................... 9 DEMOGRAPHIC SNAPSHOT .............................................. 10
INDUSTRIES & EMPLOYMENT • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 13 LEADING SECTORS ............................................................ 13 MAJOR EMPLOYERS .......................................................... 13 KEY INDUSTRY CLUSTERS .................................................... 14 PRIMARY EMPLOYERS ........................................................ 14 EMPLOYMENT AND GROWTH ...........................................15 TOTAL EMPLOYMENT BY SECTOR ......................................16 EMPLOYER SIZE ..................................................................... 17 EMPLOYMENT BY OCCUPATION ...................................... 18 AVERAGE WAGES BY INDUSTRY AND OCCUPATION ... 18 UNEMPLOYMENT RATE ...................................................... 21
REAL ESTATE • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 23 COMMERCIAL REAL ESTATE ..............................................23 VACANCY RATES ............................................................... 23 RESIDENTIAL REAL ESTATE .................................................. 24 COST OF LIVING .................................................................25
LOCAL ECONOMY • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 27 INCOME ..............................................................................27 COMMUTING PATTERNS ....................................................28 GROSS DOMESTIC PRODUCT ........................................... 29 VENTURE CAPITAL INVESTMENT ........................................ 30 TOURISM ............................................................................. 31 RETAIL SALES .......................................................................32
ABOUT THE BOULDER ECONOMIC COUNCIL • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 35
DEMOGRAPHICS
Home to a world-class research university, major government research facilities, visionary entrepreneurs, and one of the nation’s most highly educated populations, Boulder is widely recognized as a center of innovation. Nestled at the base of the Rocky Mountains, the city is surrounded by the scenic beauty and recreational opportunities afforded by over 45,000 acres of open space and 151 miles of biking and hiking trails. Boulder offers an impressive choice of art, cultural, dining, entertainment and shopping options, as well as excellent schools, high-quality health care, and sustainable environmental policies.
Boulder has a vibrant economy representing a diverse array of industries. Those that impart a particularly broad footprint on the city’s economy include aerospace, bioscience, natural and organic products, outdoor recreation, software, and tourism.
LOCAL ECONOMY
While small businesses continue to represent the majority of employers in Boulder, several major corporations diversify employment opportunities and fuel economic growth, including AstraZeneca; Ball Aerospace & Technologies Corp.; Celestial Seasonings; CordenPharma; Qualcomm; Medtronic; Google; Lockheed Martin; Emerson, Inc.; IHS Markit and Zayo Group, among many others. The city’s world-class research institutions are another key economic driver, including the University of Colorado Boulder and more than a dozen federal research laboratories. The University Corporation for Atmospheric Research (UCAR), the National Oceanic and Atmospheric Administration (NOAA), and the National Institute of Standards and Technology (NIST) are among the federal research laboratories in the city.
REAL ESTATE
The city of Boulder is the largest municipality in Boulder County, part of the seven-county Denver metro area, and the only county in the Boulder Metropolitan Statistical Area MSA (MSA). Only 30 minutes from downtown Denver and 45 minutes from one of the nation’s largest international airports, Boulder offers the advantages of a small city with big-city convenience and amenities. Its location in the Mountain Time Zone provides same-day telephone access to major markets throughout the world.
INDUSTRIES & EMPLOYMENT
BOULDER COLORADO : A MARKET PROFILE STUDY
Boulder Economic Council • 2018 Market Profile
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DEMOGRAPHICS DEMOGRAPHICS
POPULATION AND GROWTH In 2017, the city’s total population was approximately 108,707, reflecting an annual growth rate of 1.4% from 2016. These population numbers include CU Boulder students, (both undergraduate and graduate students) who, as a whole, make up approximately 30.8% of the City of Boulder’s population. This is reflected in the city’s demographic characteristics. Population growth in the City of Boulder has been consistently rising within the last decade. From 2000 to 2010, the city’s population grew at an average annual rate of 0.3%. This compares to an average annual growth rate of 1.3% from 1990 to 2000. In the past several years, the city’s population has increased more modestly, hovering around an average growth rate of 1.55% from 2010 to 2016. According to the 2017 Boulder Community Profile, the city’s population is projected to increase to approximately 123,000 by 2040.
BOULDER COUNTY POPULATION CHANGE 2010-2016 Area
2010
2016
Change
Annual Average % Change
Boulder County Total
295,605
321,989
26,384
1.4%
Boulder
97,928
107,789
9,861
1.6%
Erie (Part)
8,409
9,769
1,360
2.5%
Longmont (Part)
86,409
93,254
6,845
1.3%
Louisville
18,412
20,643
2,231
1.9%
Lyons
2,038
1,923
(115)
-1.0%
Superior (Part)
12,501
13,185
684
0.9%
Unincorp. Area
43,484
45,173
1,689
0.6%
Source: Colorado State Demography Office
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DEMOGRAPHICS
DEMOGRAPHIC CHARACTERISTICS The following demographic characteristics of City of Boulder residents were obtained from the U.S. Census Bureau American Community Survey (ACS) released in September 2017. This survey includes population in group quarters, such as college dormitories, sororities and fraternities, correctional facilities, skilled nursing facilities and group home shelters.
AGE The median age of City of Boulder residents is 28.5. This compares to the national median of 37.9 years. Approximately 29.3% of the adult population in Boulder is in the 18–24 age category. This number is largely a reflection of the student population at CU-Boulder, totaling more than three times the percentage for the state and national population (each 9.6%), highlighting the effect of the university on city demographics.
BOULDER COUNTY POPULATION BY GENERATION
Source: Colorado State Demography Office, Boulder County 2017
EDUCATION In comparison to peer cities, the Boulder MSA and City of Boulder both record the highest concentrations of both bachelor’s and graduate degrees. For the City of Boulder, 73% of the terminal degrees are bachelor’s or graduate, and for the Boulder MSA, 60.6%. This translates to nearly 46,000 individuals in the city and 128,000 in the MSA with bachelor’s degrees or higher based on 2016 American Community Survey data from the U.S. Census Bureau. For comparison, the next closest number of bachelor’s and graduate degrees are in the Austin-Round Rock, Texas MSA, with 585,000 degrees. So, despite the high concentration of degrees, the area’s relatively small population lends to a small critical number of these degrees. Nearly all city residents age 25 or older have a high school diploma or higher (96.4%), and just under threequarters of the population (73%) have earned a bachelor’s or advanced degree. This is more than triple the U.S. average of 31.2%.
Boulder Economic Council • 2018 Market Profile
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DEMOGRAPHICS
ETHNICITY Census data reports that 88.1% of the City of Boulder’s population is White. Approximately 11.1% of the population is of Hispanic or Latino origin (of any race).5.1% is Asian, 1.2% is Black or African American, 0.2% is American Indian or Alaska Native, and 2.3% is other races. The vast majority the city’s population (88.1%) is U.S. born – slightly lower than the Boulder County and Colorado averages, but higher than the nation as a whole. The remaining 11.9% of the population is foreign born.
BOULDER COUNTY POPULATION BY ETHNICITY Race*
City of Boulder
Boulder County
Colorado
U.S.
White
88.1%
89.6%
84.0%
72.6%
Black or African American
1.2%
1.1%
4.2%
12.7%
American Indian or Alaska Native
0.2%
0.3%
1.0%
0.8%
Asian
5.1%
4.8%
3.2%
5.4%
Other
2.3%
1.8%
4.1%
5.1%
Hispanic or Latino (of any race)
11.1%
13.8%
21.3%
17.8%
*Race alone or in combination with one or more other races. US Census, 2016 American Community Survey.
BOULDER COUNTY POPULATION BY BIRTHPLACE Place of Birth
City of Boulder
Boulder County
Colorado
U.S.
Born in United States*
88.1%
88.4%
88.6%
85.0%
Foreign born
11.9%
11.6%
9.8%
13.5%
*includes Puerto Rico, US Island areas or born abroad to American parent(s). US Census, 2016 American Community Survey.
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DEMOGRAPHICS
DEMOGRAPHIC SNAPSHOT
The table below includes select demographic data from the US Census Bureau’s American Community Survey for the City of Boulder, Boulder County (Boulder-Longmont MSA), Colorado, and the United States. More detailed information is available on the American Fact Finder website at http://factfinder.census.gov.
POPULATION CHARACTERISTICS
CITY OF BOULDER
BOULDER COUNTY
COLORADO
U.S.
Total Population
108,707
322,226
5,540,545
323,127,515
Number of Households
40,031
123,820
2,108,992
118,860,065
Average Household Size
2.43
2.51
2.57
2.65
Average Family Size
2.99
3.08
3.15
3.27
% Family Households (families)
45.5%
58.6%
63.9%
65.4%
% Households with children under 18
19.6%
27.4%
28.3%
27.6%
Male
51.2%
50.1%
50.4%
49.2%
Female
48.2%
49.8%
49.6%
50.8%
Median age
28.5
36.4
36.7
37.9
Under 5 years old
4.1%
4.8%
6.0%
6.1%
18 years or older
87.4%
80.3%
77.2%
77.2%
65 years or older
9.0%
13.3%
13.4%
15.2%
AGE
EDUCATION
(Population 25 or older ) High school graduate or higher
96.4%
95.2%
91.5%
87.4%
Bachelor’s degree or higher
73.0%
60.7%
39.8%
31.2%
Graduate or professional degree
38.5%
28.3%
14.9%
11.9%
% of population in workforce (16 or older)
66.2%
67.5%
68.0%
63.1%
Civilian labor force (16 or older)
63,364
179,621
3,004,124
162,766,905
INCOME Median household income
$70,158
$74,615
$65,685
$57,617
Median family income
$113,391
$106,908
$80,761
$71,062
Median non-family income
$40,950
$41,218
$40,936
$34,963
Per capita income
$40,037
$41,258
$34,542
$31,128
Boulder Economic Council • 2018 Market Profile
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Boulder Economic Council • 2018 Market Profile
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KEY INDUSTRIES AND EMPLOYMENT Boulder’s vibrant economy is supported by the presence of the university, major federally funded research facilities, and a large number of businesses in growing industries.
LEADING SECTORS
Professional, scientific, and technical services Manufacturing Information Management of companies and enterprises Arts, entertainment, and recreation Accommodation and food services
INDUSTRIES & EMPLOYMENT
• • • • • •
MAJOR EMPLOYERS
The City of Boulder has approximately 7,000 employers with five or more employees. The city’s 10 largest employers (listed in alphabetical order) are: • • • • •
Ball Aerospace & Technologies Boulder Community Health Boulder County Boulder Valley School District City of Boulder
• • • • •
Medtronic IBM NOAA UCAR/NCAR University of Colorado Boulder
Other major employers include: • • • • • • • • •
Array BioPharma Boulder Brands Battelle Ecology CA Technologies CordenPharma Crispin Porter + Bogusky Elevations Credit Union Emerson Google
• • • • • • • • •
Hain Celestial Group Lockheed Martin LogRhythm IHS Markit Micro Motion Naropa University NetApp/SolidFire NIST Northrop Grumman
• • • • • • •
Qualcomm Research Electro-Optics Ricoh Production Print Solutions Spectra Logic Twitter Whole Foods Zayo Group LLC
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KEY INDUSTRY CLUSTERS The key industry clusters that employ the largest employment concentration in Boulder County MSA include: Aerospace, Bioscience, Cleantech, Information Technology – Software, Natural Products, and Outdoor Recreation. Examples of Boulder-based firms that are included in some of these clusters are: Ball Aerospace & Technologies Corp. and Lockheed Martin (Aerospace), IBM Corp and Google (IT-Software), Medtronic and AstraZeneca (Biosciences), Envision Energy and Siemens Energy (Cleantech), Hain Celestial (Celestial Seasonings, Rudi’s Organic Bakery) and Pinnacle Foods (Natural Products), and La Sportiva and Exxel Outdoors (Outdoor Recreation).
INDUSTRIES & EMPLOYMENT
A cluster refers to a geographical agglomeration of industries or companies serving a particular field. The Metro Denver Economic Development Corporation profiled several industry clusters in 2017 for the Denver Metro region, examining the identified clusters in the region using the organization’s definitions of clusters for the purposes of regional comparison. Other key industry clusters include Research, Tourism, Beverages and Creative Services.
INDUSTRY CLUSTERS: BOULDER MSA INDUSTRY CLUSTER
NUMBER OF BUSINESSES
TOTAL EMPLOYMENT
LOCATION QUOTIENT
Aerospace
44
5,682
13
Biosciences
166
5,089
4
Cleantech
290
4,551
4
IT-Software
920
11,614
3
A location quotient is a useful tool for analyzing an industry’s clustering in a given geographical area. Literally, this is an industry’s relative concentration in one area compared to the same industry in another area. For the purpose of looking at industry clusters and employment in the Boulder MSA, the relative concentration is calculated in comparison to the nation. A location quotient of 1.0 indicates the study area has the same concentration of industry employment as the nation. A location quotient of >1.0 indicates the study area has a greater concentration of industry employment compared to the nation, and a location quotient of <1.0 indicates the area has a smaller industry concentration than the nation.
BOULDER PRIMARY DATA: FIRMS & EMPLOYEES Primary employers are characterized as companies that export a significant portion of the goods and services they produce, the revenues from those exports support the local economy. Primary employers have two important impacts on local economic activities: First, primary employers have a direct impact on the local community by providing jobs for area residents. Second, the income generated by those direct jobs supports a variety of goods and services providers. This second effect is often referred to as the indirect, or multiplier effect. Primary employers, are in essence, companies that serve customers outside the local area and could thus locate nearly anywhere. Other characteristics of these industries may include highly skilled labor and high wages. Segments of these industries work together in related fields, forming industry clusters like aerospace, information technology, natural products, bioscience and others. In the City of Boulder, a primary employer is defined by ordinance as “a business or organization of any number of employees that generates more than 50% of its revenues from activities outside of Boulder County, and shall include, but is not limited to those facilities of such business and organization devoted to the manufacturing, research and development, data processing, telecommunications and publishing, but shall not include hotels, motels, retailers or food service facilities.”
Boulder Economic Council • 2018 Market Profile
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EMPLOYMENT AND GROWTH The city of Boulder is an important employment center for Boulder County and the entire metro Denver region, representing approximately 52.8% of the county’s total employment (excluding self-employed). Colorado Department of Labor estimates for May 2018 indicate 192,700 individuals are employed in Boulder County. After falling in 2001–2003, total employment in the county steadily rose from 2004–2007 before dropping nearly 1.8% in 2008 and 3.5% in 2009. Employment growth has remained steady since 2010, increasing by 2.9% (2011), 2.6% (2012) 2.3% (2013), 2.5% (2014), 2.3% (2015), and 2.6% (2016). From May 2017 to May 2018, employment grew 2.0%, or increased by 3,700 jobs.
INDUSTRIES & EMPLOYMENT Employment growth in the city has followed a pattern similar to that of the county. Additionally, the city of Boulder and Boulder County have a higher concentration of proprietors than the state and the nation. According to data from the Bureau of Economic Analysis, 22.6% of national employment is in the form of proprietor employment, compared to 25.2% for the state and 27.8% for Boulder County.
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TOTAL EMPLOYMENT BY SECTOR Excluding self-employed individuals, the largest percentage (16.6%) of workers in the City of Boulder remains those who are employed by government entities, including the University of Colorado Boulder, Boulder County, the City of Boulder, Boulder Valley School District, and federal research laboratories. The Professional, Scientific and Technical Services industry represents 16.3% of employment.
EMPLOYERS AND EMPLOYMENT BY SECTOR IN BOULDER, COLORADO Firms
Employees
INDUSTRIES & EMPLOYMENT
Government (includes public universities and schools)
42
0.6%
15,468
16.6%
Professional, Scientific and Technical Services
2,070
28.9%
15,222
16.3
Manufacturing
248
4.0%
9,956
10.7%
Accommodation and Food Services
423
5.9%
9,375
10.1%
Health Care and Social Assistance
693
9.7%
8,644
9.3%
Retail Trade
559
7.8%
8,265
8.9%
Information
232
3.2%
5,452
5.8%
Finance and Insurance
371
5.2%
3,402
3.7%
Administrative and Support Services
324
4.5%
2,933
3.1%
Wholesale Trade
467
6.5%
3,122
3.3%
Other Services
571
8.0%
2,690
3.2%
Arts, Entertainment and Recreation
159
2.2%
1,971
2.1%
Construction
284
4.0%
1,644
1.8%
Educational Services
171
2.4%
1,643
1.8%
Real Estate and Rental and Leasing
374
5.2%
1,323
1.4%
Transportation and Warehousing
44
0.6%
841
0.9%
Management of Companies and Enterprises
58
0.8%
670
0.7%
Other
28.6
0.4%
280
0.3%
Total
7,158
100.0%
93,201
100.0%
Source: Colorado Department of Labor and Employment (QCEW 2017), Business Research Division, University of Colorado
Boulder has high concentrations of workers in two high-tech sectors: Information (over 3 times the national average) and Professional, Scientific and Technical Services (2.8 times the average).
Boulder Economic Council • 2018 Market Profile
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EMPLOYER SIZE (PRIVATE) Most of the estimated 7,000 private employers in the City of Boulder are small businesses; approximately 96% have fewer than 50 employees. It is important to note, however, that employers with 100 or more employees (1.6% of total) employ 34.9% of the workers.
INDUSTRIES & EMPLOYMENT The distribution of employers in Boulder County resembles the distribution in the City of Boulder, though Boulder County tends to have a slightly greater concentration of small businesses.
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EMPLOYMENT BY OCCUPATION While the largest percentage of employees in the Boulder MSA are employed in Office and Administrative Support (12.8%), Food Services (10.2%), and Sales (10.1%) occupations, the area has a very high concentration of employment in science, computer, and engineering occupations, including: LIFE, PHYSICAL AND SOCIAL SCIENCE OCCUPATIONS (4.3 TIMES NATIONAL AVERAGE) • Physicists (39.2 times national average) • Biochemists and biophysicists (7.9 times national average) • Chemists (3.2 times national average) • Environmental scientists and specialists, including health (9.8 times national average)
INDUSTRIES & EMPLOYMENT
COMPUTER AND MATHEMATICAL OCCUPATIONS (2.6 TIMES THE NATIONAL AVERAGE) • Software developers, applications (4.7 times national average) • Computer user support specialists (2.4 times national average) • Software developers, systems software (3.4 times national average) ARCHITECTURE AND ENGINEERING OCCUPATIONS (2.6 TIMES THE NATIONAL AVERAGE) • Aerospace engineering and operations technicians (10.2 times national average) • Architects, except landscape and naval (3.2 times national average) • Computer hardware engineers (11.2 times national average) • Cartographers and photogrammetrists (5.6 times national average)
EMPLOYMENT BY OCCUPATION: BOULDER MSA All Occupations (000000)
178,460
100.0%
1.00
Office and Administrative Support Occupations (430000)
22,880
12.8%
0.83
Food Preparation and Serving Related Occupations (350000)
18,170
10.2%
1.10
Sales and Related Occupations (410000)
18,100
10.1%
1.00
Computer and Mathematical Occupations (150000)
13,740
7.7%
2.58
Business and Financial Operations Occupations (130000)
13,530
7.6%
1.45
Education, Training, and Library Occupations (250000)
12,170
6.8%
1.11
Management Occupations (110000)
9,520
5.3%
1.04
Healthcare Practitioners and Technical Occupations (290000)
9,480
5.3%
0.89
Production Occupations (510000)
8,360
4.7%
0.74
Architecture and Engineering Occupations (170000)
8,180
4.6%
2.60
Transportation and Material Moving Occupations (530000)
6,290
3.5%
0.50
Life, Physical, and Social Science Occupations (190000)
6,170
3.5%
4.29
Personal Care and Service Occupations (390000)
5,360
3.0%
0.83
Installation, Maintenance, and Repair Occupations (490000)
4,550
2.5%
0.66
Construction and Extraction Occupations (470000)
4,390
2.5%
0.61
Building and Grounds Cleaning and Maintenance Occupations (370000)
4,130
2.3%
0.75
Healthcare Support Occupations (310000)
3,670
2.1%
0.71
Arts, Design, Entertainment, Sports, and Media Occupations (270000)
3,570
2.0%
1.48
Protective Service Occupations (330000)
2,250
1.3%
0.53
Community and Social Service Occupations (210000)
2,240
1.3%
0.85
Legal Occupations (230000)
1,310
0.7%
0.95
Farming, Fishing, and Forestry Occupations (450000)
390
0.2%
0.66
Farming Fishing and Forestry Occupations (450000)
390
0.2%
0.67
Source: Bureau of Labor Statistics, Occupational Employment Statistics, May 2017. LQ (Location Quotient) is an indicator of concentration of employment in select industries based on comparison of local and national percentages. Boulder Economic Council • 2018 Market Profile
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AVERAGE WAGES BY INDUSTRY AND OCCUPATION According to Colorado Department of Labor and Employment data, the average annual wages for employees in the City of Boulder (excluding self-employed and contract labor) is $62,522 compared to an average of $62,820 for Boulder County and $56,916 for Colorado.
AVERAGE ANNUAL WAGES BY INDUSTRY: CITY OF BOULDER, BOULDER COUNTY AND COLORADO (INCLUDING FULL-TIME, PART-TIME, AND SEASONAL WORKERS)
City of Boulder Boulder County Average Wage Average Wage
Colorado Average Wage
Management of Companies and Enterprises
$98,738
$107,234
$148,776
Information
$109,115
$124,818
$100,782
Finance and Insurance
$102,201
$112,460
$92,577
Professional, Scientific, and Tech Services
$93,393
$107,524
$93,611
Manufacturing
$83,763
$79,752
$69,452
Wholesale Trade
$78,220
$93,191
$83,003
Government (includes public universities and schools)
$59,780
$59,557
$54,897
Construction
$51,830
$54,759
$59,446
Real Estate and Rental and Leasing
$48,223
$57,147
$57,232
Health Care and Social Assistance
$46,722
$50,812
$49,770
Transportation and Warehousing
$41,703
$42,130
$55,885
Other Services
$39,652
$39,714
$39,555
Administrative and Waste Mgmt Services
$42,443
$43,787
$41,066
Educational Services
$34,012
$36,268
$40,324
Retail Trade
$29,847
$33,553
$31,568
Arts, Entertainment, and Recreation
$22,601
$27,206
$36,117
Accommodation and Food Services
$20,203
$21,446
$22,137
Mining (includes oil and gas extraction)
NA
$67,469
$117,032
Utilities
NA
$108,806
$99,728
Agriculture, Forestry, Fishing and Hunting
NA
$37,389
$36,457
Total Industries
$62,522
$64,820
$56,916
Source: Colorado Department of Labor and Employment (QCEW 2017), Business Research Division, University of Colorado . Notes: Location Quotient is an indicator of concentration in select industries based on comparison of local and national percentages. Agricultural, Forestry, Fishing and Hunting, Mining, and Utilities industries data not reported for the city of Boulder due to small population size. Self-employed and contract labor excluded.
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INDUSTRIES & EMPLOYMENT
Average wages (including both full- and part-time workers) in Boulder vary widely by industry, ranging from a low of $20,203 for the Accommodation and Food Services industry to a high of $109,115 for the Information industry. Industries that pay higher than average wages include: • Finance and Insurance • Information • Management of Companies and Enterprises • Manufacturing • Mining • Professional, Scientific, and Technical Services
Data from the Bureau of Labor Statistics for the Boulder MSA (Boulder County) indicate the median annual wage for all occupations is $48,050 compared to $40,880 for Colorado and $37,690 for the United States. Management occupations earn the highest annual average.
MEDIAN ANNUAL WAGE BY OCCUPATION
INDUSTRIES & EMPLOYMENT
Occupation (SOC code)
Boulder MSA
Colorado
U.S.
All Occupations (000000)
$48,050
$40,880
$37,690
Management Occupations (110000)
$127,490
$113,520
$102,590
Architecture and Engineering Occupations (170000)
$92,150
$81,460
$79,180
Computer and Mathematical Occupations (150000)
$92,440
$92,520
$84,560
Healthcare Practitioners and Technical Occupations (290000)
$73,910
$70,060
$64,770
Life, Physical, and Social Science Occupations (190000)
$76,200
$66,680
$64,510
Business and Financial Operations Occupations (130000)
$72,190
$$69,920
$67,710
Education, Training, and Library Occupations (250000)
$54,740
$46,730
$48,740
Arts, Design, Entertainment, Sports, and Media Occupations (270000)
$50,330
$44,500
$48,230
Protective Service Occupations (330000)
$55,420
$41,530
$39,550
Sales and Related Occupations (410000)
$36,270
$30,800
$27,020
Community and Social Service Occupations (210000)
$48,510
$$46,560
$43,840
Installation, Maintenance, and Repair Occupations (490000)
$47,680
$47,250
$44,520
Construction and Extraction Occupations (470000)
$46,180
$44,950
$44,730
Office and Administrative Support Occupations (430000)
$38,070
$36,690
$34,740
Production Occupations (510000)
$35,710
$35,030
$33,990
Transportation and Material Moving Occupations (530000)
$30,620
$34,150
$31,600
Healthcare Support Occupations (310000)
$34,440
$32,320
$28,710
Personal Care and Service Occupations (390000)
$30,130
$24,350
$23,610
Building and Grounds Cleaning and Maintenance Occupations (370000)
$30,080
$27,300
$25,620
Farming, Fishing, and Forestry Occupations (450000)
$28,800
$26,450
$24,390
Food Preparation and Serving Related Occupations (350000)
$24,200
$21,940
$21,910
Legal Occupations (230000)
N/A
$83,710
$80,080
Bureau of Labor Statistics, Occupational Employment Statistics, May 2017.
UNEMPLOYMENT RATE In 2017, the unemployment rate in the Boulder area was lower than the previous three years, showing continued recovery from the recession. The annual unemployment rate was 5.5% in 2013, 4.1% in 2014, 3.2% in 2015, 2.7% in 2016, and 2.4% in 2017 (not seasonally adjusted). As of May, 2018, the unemployment rate stands at 2.1%.
INDUSTRIES & EMPLOYMENT
Bureau of Labor Statistics (not seasonally adjusted)
Boulder’s unemployment rate has remained consistently below state and national rates.
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Boulder Economic Council • 2018 Market Profile
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REAL ESTATE COMMERCIAL REAL ESTATE In Q1 2018, the Boulder office market posted negative absorption, no change in vacancy, stable rental rates and an increase in sales in comparison to Q4 2017. Q1 reported 819,852 square feet of vacant office space; 361,124 square feet of vacant warehouse space; 214, 692 square feet of vacant flex space and 162,071 square feet of vacant retail space.
Office Vacancy Rate Warehouse Vacancy Rate
R&D Flex Vacancy Rate
Retail Vacancy Rate
Q1 16
8.2
4.4
5.9
1.9
Q2 16
10.3
3.4
5.6
2.2
Q3 16
10.8
3.9
4.8
2.0
Q4 16
11.0
4.0
4.0
2.7
Q1 17
11.5
6.6
4.7
2.4
Q2 17
11.3
3.8
11.4
6.1
Q3 17
11.6
5.7
11.7
7.0
Q4 17
11.5
5.6
12.6
6.9
Q1 18
11.5
5.8
5.0
3.5
Source: Newmark Grubb Knight Frank
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REAL ESTATE
Quarter
RESIDENTIAL REAL ESTATE Agencies continue to report higher than average home values for the City of Boulder, with the median home price at $927,200 to date in 2018. This compares to $525,700 for the county and $279,500 for the nation. The city’s tranquil location at the base of the Rocky Mountains, along with the presence of the university and research facilities, contributes to this large differential. The median sales prices for single-family homes sold in the Boulder area in 2017 ranged from $405,000 in Longmont to $902,000 in Niwot. Median prices for multifamily units sold ranged from $299,000 in Longmont to $413,225 in Louisville. Year-to-date through June 2018 ranged from $440,000 in Longmont to $689,000 in Louisville. Median prices for multifamily units sold ranged from $330,600 in Erie to $458,812 in Louisville. The City of Boulder has a lower percentage of owner-occupied units than average compared to the rest of the state, reflecting the demand for rental housing among university students. About 53.2% of the housing units in the city are owner-occupied compared to 66% of housing units in Boulder County, 66.4% of housing units in Colorado and the national rate of 64.7%. Average rent in the City of Boulder currently stands at $2,009 compared to the City of Denver at $1,653.
REAL ESTATE * YTD through June 2018
Boulder Economic Council • 2018 Market Profile
Boulder Area Realtors
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According to the Federal Housing Finance Agency’s House Price Index (based on repeat sales or refinancing of the same single-family properties), in the first quarter of 2018, home prices in the Boulder MSA increased by 8.2% compared to Q1 2017.
COST OF LIVING REAL ESTATE
Overall prices in the Denver-Boulder-Greeley metropolitan area surpassed those in the nation in 2017. Prices have outpaced the nation in four of the past five years. In 2017, housing costs in the Denver MSA was a large component of the price differential.
CONSUMER PRICE INDEX Denver-Boulder-Greeley United States Year Index % Change Index % Change 2010 212.4 1.9% 218.1 1.6% 2011 220.3 3.7% 224.9 3.2% 2012 224.6 1.9% 229.6 2.1% 2013 230.8 2.8% 233.0 1.5% 2014 237.2 2.8% 236.7 1.6% 2015 240.0 1.2% 237.0 0.1% 2016 246.6 2.8% 240.0 1.3% 2017 255.0 3.4% 245.1 2.1% Source: Bureau of Labor Statistics. All items, not seasonally adjusted, 100=1982-1984.
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Boulder Economic Council • 2018 Market Profile
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LOCAL ECONOMY INCOME Within the City of Boulder, the median household income is significantly higher in comparison to the state and nation. This large differential is mostly attributed to the high percentage of city residents who possess a bachelor’s or advanced degree increases resident incomes. More than one-third (35.9%) of city residents have an income above $100,000 compared to 38.1% for the county, 30.1% for the state, and 26.2% for the nation. However, it is important to note that the student population in the City of Boulder increases the percentage of households with incomes near the poverty line.
INCOME Annual Income Median Household Median Family Per Capita Income
City of Boulder
Boulder County
Colorado
U.S.
$70,158
$74,615
$65,685
$57,617
$113,391
$106,908
$80,761
$71,062
$40,037
$41,258
$34,542
$31,128
US Census, 2016 American Community Survey.
LOCAL ECONOMY 27
COMMUTING PATTERNS Boulder residents on average spend less time traveling to work in comparison other workers across both the state and nation. According to Census data, 87.7% of employed City of Boulder residents work within Boulder County. This compares to 66.9% of Coloradans who work and live in the same county and 72.4% of U.S. residents. The number of city residents who typically drive alone to work has remained around 50% compared to the national average of 76.3%.
COMMUTING TO WORK City of Boulder Residents
Boulder County Residents
Colorado Residents
U.S.
Work in county of residence
87.7%
82.2%
66.9%
72.4%
Mean travel time to work
19.1 minutes
22.1 minutes
25.0 minutes
26.6 minutes
Drive alone to work (car, truck, van)
50.3%
65.2%
75.0%
76.3%
Public transportation (excluding taxicab)
7.3%
4.6%
2.9%
5.1%
Carpool
4.8%
7.2%
9.0%
9.0%
Walk, bicycle, or other means
22.9%
10.9%
5.2%
4.5%
Work at home
14.9%
12.1%
7.9%
5.0%
2016 American Community Survey, US Census Bureau.
LOCAL ECONOMY Boulder Economic Council • 2018 Market Profile
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GROSS DOMESTIC PRODUCT The nominal gross domestic product (GDP) for Boulder County is an estimated $23.9 billion in 2016. GDP declined by $272 million from 2008 to 2009 during the recession, but quickly rebounded within Boulder County. In real terms however, Boulder GDP actually grew slightly by 0.4% during the recession, and grew 4.1%, 2.5%, and 2.7% for the years following (2010–2012). In 2016, Boulder Country’s real GDP grew by 1.6%.
LOCAL ECONOMY 29
VENTURE CAPITAL INVESTMENT A high concentration of advanced technology industries has helped fuel venture capital investment in Boulder firms. According to data from CB Insights, from 2013–2018 (year-to-date through Q2 2018), over $1.5 billion was invested in firms in the city of Boulder, representing 32.2% of the total VC investment in Colorado companies. In 2017, Boulder recorded $403.9 million in VC funding, or 42% of the total in Colorado. In Q1 and Q2 2018, firms located in the city of Boulder received $243.9 million in VC funding (48% of the total for Colorado companies).
CB Insights
LOCAL ECONOMIY
QUARTER
COLORADO
BOULDER
Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18
$106,300,000 $96,700,000 $256,400,000 $115,300,000 $419,900,000 $170,400,000 $174,500,000 $178,200,000 $267,000,000 $243,100,000
$68,600,000 $25,600,000 $69,500,000 $3,900,000 $253,500,000 $64,000,000 $23,600,000 $62,800,000 $192,500,000 $51,400,000
Source: CB Insights
Boulder Economic Council • 2018 Market Profile
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TOURISM Tourism in Boulder is supported by the presence of the University of Colorado as well as the city’s surroundings and amenities. Boulder is surrounded by over 43,000 acres of open space and has over 200 miles of public hiking and biking trails including the Boulder Creek Path, a trail featuring pedestrian and bicycle lanes that runs through the middle of town. Boulder Canyon is only a 10-minute drive from downtown Boulder; Eldora Mountain Resort, Eldorado Canyon State Park, and Rocky Mountain National Park are less than an hour away. Each year, the city hosts one of the nation’s largest 10k races, the Bolder Boulder. The Boulder Convention and Visitors Bureau (CVB) is the premier resource for tourism in Boulder. The mission of the Boulder Convention and Visitors Bureau (CVB) is to provide leadership promoting Boulder’s natural environment, arts, culture, innovation, and the visitor experience to support economic vitality and our quality of life.
RETAIL SALES Retail sales activity in the Boulder area follows a typical seasonal pattern, peaking in the fourth quarter. Retail sales tax collections increased by 0.2% in 2018.
LOCAL ECONOMY 31
Accommodations taxes, admissions taxes, and sales taxes indicate robust tourism activity in the City of Boulder.
NET SALES TAX RECEIPTS: CITY OF BOULDER Year
Accommodations
Admissions
Eating Places
Downtown Boulder
Twenty Ninth Street
2010
$3,269,618
$564,432
$10,930,482
$5,876,454
$6,497,161
2011
$4,797,280
$586,303
$11,838,300
$6,281,046
$6,809,744
2012
$5,048,277
$622,444
$12,937,276
$6,451,278
$7,721,419
2013
$4,905,937
$530,427
$13,002,411
$5,999,753
$7,927,165
2014
$5,897,602
$545,592
$14,270,670
$6,966,168
$8,274,732
2015
$6,385,073
$634,318
$16,462,342
$7,961,633
$9,243,257
2016
$6,944,033
$758,807
$16,948,821
$9,040,211
$9,170,268
2017
$7,056,993
$80,950
$17,433,097
$8,908,035
$8,550,783
2018
$7,056,993
$80,950
$17,433,097
$8,908,035
$8,550,783
City of Boulder Sales & Use Tax Revenue Report (Sales and use Tax increased from 3.56% to 3.86% on 1/1/15)
LOCAL ECONOMIY Boulder Economic Council • 2018 Market Profile
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ABOUT THE BOULDER ECONOMIC COUNCIL The Boulder Economic Council, the economic development arm of the Boulder Chamber, is a group of prominent business and community leaders committed to Boulder and its economic well-being. The council supports the healthy business sector necessary to sustain the cultural amenities, education, transit, open space and other facets of Boulder’s outstanding quality of life. The group helps lead the community in creating an economic vision and strategy that fosters primary employer retention and growth. Boulder Economic Council members are uniquely positioned to help formulate major economic initiatives that shape Boulder’s future by virtue of their individual standings in the community, knowledge of the market, familiarity with available resources and the collaborative relationships they have established. Council members and staff work to promote Boulder’s economic vitality through work with both emerging and established enterprises. Boulder Economic Council activities include working to retain Boulder’s home-grown businesses that have helped to create the character of our community; providing information and support for local businesses and companies interested in Boulder; supporting organizations that provide entrepreneurs with training, networking, mentoring, and access to funding sources; creating a unified voice for a strong local economy through private/public partnerships; and participating in regional and statewide economic initiatives.
2018 BOULDER ECONOMIC COUNCIL MEMBERS AstraZeneca Ball Aerospace Berg Hill Greenleaf & Ruscitti BizWest Boulder Area Realtors Association Boulder Community Health Foundation Boulder Convention & Visitors Bureau Boulder County Boulder Medical Center Boulder Valley School District Bryan Cave Leighton Paisner LLP Celestial Seasonings City of Boulder CliftonLarsonAllen Colorado Business Bank Colorado Enterprise Fund The Colorado Group, Inc. Crescent Real Estate LLC Daily Camera
Dean Callan & Company, Inc. Eide Bailly EKS&H Elevations Credit Union Emerson Envision Energy First National Bank First Western Trust Front Range Community College Gibbons-White, Inc. Google The Hiltons on Canyon Hotel Boulderado IBM JPMorgan Chase Justin’s KPMG Land Title Guarantee Company Lexmark International
Lockheed Martin Macerich/29th Street MidFirst Bank Northrop Grumman Pinnacle Foods Premier Members Credit Union Qualcomm Snell & Wilmer LLP Tebo Properties Terrapin Care Station Twitter University of Colorado Boulder Wells Fargo Bank Western Disposal The WW Reynolds Companies Xcel Energy Zayo Group
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2440 PEARL ST. ◆ BOULDER, CO 80302 ◆ WWW.BOULDERECONOMICCOUNCIL.ORG