State’s in­come gains fall be­low av­er­age

Ris­ing pop­u­la­tion, hous­ing costs prob­lem­atic in sub­par growth

The Denver Post - - BUSINESS - By Aldo Svaldi

Per­sonal in­comes in Colorado are ris­ing at a slower rate than the rest of the coun­try this year, ac­cord­ing to first-quar­ter num­bers from the U.S. Bureau of Eco­nomic Anal­y­sis.

Per­sonal in­come con­sists of the wages peo­ple earn from a job or the pay­ments from a busi­ness they per­son­ally own, as well as the money made from rents, div­i­dends, in­ter­est and roy­al­ties. Gov­ern­ment pay­ments such as So­cial Se­cu­rity also are counted in the mix.

In Colorado, per­sonal in­comes, not ad­just­ing for in­fla­tion, rose 0.9 per­cent in the first quar­ter from the fourth ver­sus a 1 per­cent gain na­tion­ally, which pushed Colorado down to a 38th-place rank­ing among states.

Since the start of 2010, quar­terly per­sonal in­come gains in Colorado have out­paced U.S. gains 21 times, matched twice and lagged six times. Four of those six lag­ging quar­ters have come since 2015.

Fall­ing be­hind on in­come growth is prob­lem­atic for Colorado be­cause of a pop­u­la­tion that is grow­ing at a rate twice as fast as the coun­try as a whole. Look­ing at per­sonal in­come gains on a per capita ba­sis, the U.S. saw a 0.9 per­cent quar­terly gain in the first quar­ter and Colorado saw only a 0.5 per­cent gain, which ranked 44th among states.

The other prob­lem with sub­par in­come gains is that they don’t al­low house­holds in the state, es­pe­cially along the Front Range, to keep up with the sharp rise in hous­ing costs.

Home prices ap­pre­ci­ated at an 8.2 per­cent an­nual pace in Den­ver in April, the fourth-fastest rate of any ma­jor metro, ac­cord­ing to the S&P CoreLogic Case-Shiller In­dices.

Higher home prices com­bined with higher in­ter­est rates have lifted the mort­gage pay­ments on a typ­i­cal Den­ver home by about 15 per­cent com­pared with a year ago, es­ti­mates CoreLogic.

Rent in­fla­tion hasn’t been as ex­treme the last few years. An­nual apart­ment rent gains were run­ning un­der 1 per­cent in the early part of the year, but a re­port Mon­day from Apart­men­tList found that they jumped 2.4 per­cent in Den­ver and were ris­ing 3.5 per­cent statewide in June.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.