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					 Economic Contribution of
Real Estate to the State and
    Regional Economy
  Quality of Life Program


 Colorado Association of REALTORS®
Overview
 Colorado Association of REALTORS®
   Issues Mobilization Committee
      Quality of Life Program

 Initially created in 2001

 Re-branded in 2007 to create a new system of
 distribution and to provide relevant materials to all CAR
 members
QoL Goals
 Favorable political climate for REALTORS® and the real
 estate industry
 Informing REALTORS® members, legislators,
 regulators, and the general public about the positive
 impact that REALTORS® QOL Principles, REALTORS®
 and the real estate industry have on our quality of life.
 Will strengthen REALTOR® ’s impact on policy
 decisions at all levels of government
 Ensure that REALTORS® members are at the table for
 local decision making, and providing reinforcement to
 the statewide government affairs efforts of CAR.
QoL Mission Statement
 Colorado Association of REALTORS® is committed to
 supporting and/or opposing public policy issues
 throughout the state which impact the real estate
 industry, including land use, property ownership,
 environmental and economic issues. To this end, the
 Colorado Association of REALTORS® is committed to
 making tools, resources, and suggested strategies
 available to our membership through the Quality of Life
 Program.
        Economic Impact Study


Created in
June 2007

Data from
2005 Study
Overall Findings
 Real estate critical to Colorado’s economy
   Just under 68,000 Coloradoans DIRECTLY
   employed in real estate sector INDIRECTLY,
   additional 242,000 workers build and furnish homes
   and work spaces
   Real estate related employment sectors represent
   11.2% of total state employment
   Real estate related employment sectors represent
   11.5% of total state earnings and profits


                          Source: Colorado Demographer’s Office;
                                                     2005 data
Just Over 1 in 9 of State’s
Workers Real Estate Related
    Distribution of Real Estate Employment: Colorado,
                           2005
                                     15,830 28,340

          146,711                                    51,576



                                             67,993


           Construction of buildings - Nonresidential
           Construction of buildings - Residential
           Furniture, electronics, appliances, and building materials
           Real estate
           Specialty trade contractors
Just over $16.5B in Earnings
and Profits in 2005
     Distribution of Real Estate Related Earnings and
            Proprietor's Profits: Colorado, 2005
                                           10%
                                                     16%
               40%

                                                      10%
                                       24%


          Construction of buildings - nonresidential
          Construction of buildings - residential
          Furniture, electronics, appliances, and building materials
          Real estate
          Specialty trade contractors
Tax Base Contributions
 In 2005, just under $5.3 Billion in property tax was paid
 by Colorado taxpayers

 Just under 79% ($4.176 Billion) of property tax
 associated with residential, commercial, and industrial
 properties

 Largest portion to K-12 (51%)
    $2.703 Billion to K-12 in 2005


                              Source: Colorado Division of Property Taxation 35th
                                                            Annual Report, 2005
Uses of Property Tax
         Property Tax Revenue by Use: Colorado, 2005
                 (Total Revenue: $5.3 Billion)

                           16%


                                                               51%
                   27%
                                 5% 1%


   K-12                                      Junior Colleges
   Cities and Tow ns                         Counties
   Local Improvement and Service Districts
Home Ownership Correlated with
Support for Local Tax Base
                                Selected Taxable Expenditures by Housing
                                              Tenure, 2003
                     $12,000
Household Spending




                     $10,000
                      $8,000
                      $6,000
                      $4,000
                      $2,000
                        $-
                               Food Away From   Household       Entertainment   Apparel and           TOTAL
                                    Home      Furnishings and                    Services
                                                Equipment

                                   Homeowner w/ Mortgage           Homeowner w/o Mortgage             Renter



                                                                                     Source: US Bureau of Labor Statistics
Other Tax Base Contributions
 Real estate professionals pay income tax to the state

 Real estate professionals and their families pay local
 and state sales taxes

 The home as a store of wealth facilitates spending on
 goods in the tax base
   Homeowners spend more on taxable goods
Regions in report
 Denver Counties    North Front Range

 Easter Plains      Mountain Rural

 Colorado Springs   Mountain Resort

 Pueblo             Grand Junction
Average Real Estate
Earnings and Profits
 Denver Counties $59,267
 Easter Plains $38,702
 Colorado Springs $47,397
 Pueblo $37,163
 North Front Range $51,580
 Mountain Rural $38,240
 Mountain Resort $54,233
 Grand Junction $41,075
 Statewide $53,388
Per Capita
Property Tax Revenue
 Denver Counties $1,216
 Easter Plains $837
 Colorado Springs $674
 Pueblo $661
 North Front Range $1,158
 Mountain Rural $971
 Mountain Resort $2,448
 Grand Junction $682
 Statewide $1,122
The Metro Denver Counties
 The Metro Denver Counties includes the counties of Denver, Arapahoe,
 Adams, Broomfield, Douglas, and Jefferson. This region covers slightly
 less than 4% of total land area in the state, yet is home to approximately
 50% of all real estate related employment in the state and almost 50% of
 the state’s population.

 In 2005, over $9.1 billion of earnings and profits in the Denver region were
 associated with real estate related professionals. Additionally, 55.4% of the
 state’s real estate related earnings happen in the Metro Denver Counties.

 Around 41% of the earnings and profits are brought in by specialty trade
 contractors with 27% due to real estate, 10% in furniture/ electronics/
 appliance/ building materials, 13% in residential construction, and 9% in
 nonresidential construction.
The Eastern Plains Counties
 The Eastern Plains Counties are comprised of Baca, Bent, Cheyenne,
 Crowley, Elbert, Huerfano, Kiowa, Kit Carson, Las Animas, Lincoln, Logan,
 Morgan, Otero, Phillips, Prowers, Sedgwick, Washington, and Yuma
 counties. Together, these counties comprise of 32.54% of the land in
 Colorado yet only contain 3.95% of the population.

 In this large yet sparsely populated and largely agricultural region, less
 than 2% of the state’s real estate employment and incomes are generated.
 This has just under 3.56% of total assessed value in the state and due to
 the largely agricultural nature of the region, less than 3% of total property
 tax in the state is generated in this region.

 Real estate related employment is just over 6.5% of total employment in
 this region, yet these jobs generate 7.8% of total earnings and profits. Real
 estate is one of the highest paying industries in the Eastern Plains.
The Colorado Springs Counties
 The Colorado Springs Counties consist of El Paso and Teller counties
 which is a total of 2.33% area of the state. Even with the small area, the
 counties contain 12.44% of the state’s population with 9.54% of the state’s
 real estate related earnings and profits earning in the Colorado Springs
 region.

 In total, 8.32% of the total assessed value of property statewide is located
 in the Colorado Springs region. However, due to lower than average mill
 levies, the region generates only 7.48% of total property tax revenue.

 Over 1 in 10 jobs in this region are real estate related and slightly over $1
 out of every $10 in earnings and profits are real estate related. In 2005, the
 real estate related industries accounted for greater than $1.5 billion in
 direct earnings and profits in this region.
Pueblo County
 Pueblo County consists of 2.29% total area of the state and 3.20% of the
 population. However, within the region, real estate accounts for 10.57%
 and 10.8% of regional employment and incomes respectively. In this
 manner, Pueblo is slightly lower, yet relatively consistent with the overall
 averages for the state.

 Property in the Pueblo region is largely classified as residential,
 commercial or industrial. These classes of improved real estate account for
 just over 81% of total valuations in the region. Due to the relatively heavy
 concentration of industrial property in the region, Pueblo’s share of state
 property tax revenue is 1.89% and exceeds its share of assessed values at
 1.48%.

 Pueblo County also distributes the earnings and profits with 47% coming
 from specialty trade contractors, 10% in real estate, 14% in furniture/
 electronics/ appliances/ and building materials, 13% in residential
 construction and 16% in nonresidential construction. This is the only region
 that has a larger percentage of nonresidential construction than residential.
The North Front Range Counties
 The North Front Range Counties contain Boulder, Weld, and Larimer
 Counties which accounts for 7.08% of the state and 16.66% of the
 population. Real estate related employment jobs generated just over $2.5
 billion in earnings and profits in 2005, 11.3% of the region’s income
 generation.

 The North Front Range region is home to a quite diversified economy. The
 state’s two largest universities are located in this region as is nearly one
 third of all industrial property valuation. Just over $717 million in property
 tax revenue is generated by all property classes in the region. Of that,
 almost 79% comes from residential, commercial and industrial property.

 This region generates just over 17% of total state property tax revenues
 and the share of improved real estate represented by the residential,
 industrial, and commercial classes of property in the North Front Range are
 nearly identical to the share for the state overall.
The Mountain Rural Counties
 The Mountain Rural Counties consist of a few non-connecting counties and
 was crated due to the high percentage of protected public land and agriculture.
 The counties included are Alamosa, Archuleta, Chaffee, Clear Creek, Conejos,
 Costilla, Custer, Delta, Dolores, Fremont, Gilpin, Gunnison, Hinsdale, Jackson,
 La Plata, Lake, Mineral, Moffat, Montezuma, Montrose, Ouray, park, Rio
 Blanco, Rio Grande, Saguache, and San Juan.

 The Mountain Rural region claims almost 38% of the total square miles in the
 state yet only 10.38% of total valuations. From the taxable land in the region,
 just under 6.5% of total statewide property taxes are generated. For both
 values and share of property taxes, this region’s contribution has increase from
 the previous year, largely due to increases in property classes such as oil and
 gas and natural resources.

 The Mountain Rural region is second only to the mountain resort region in the
 share of total employment from real estate. In the mountain rural counties, real
 estate related employment represented 12.73% of total employment in 2005
 and generated 14.4% of total regional earnings and profits. In total, this industry
 directly contributed just under $872 million in economic activity in 2005.
The Mountain Resort Counties
 The Mountain Resort Counties contain Eagle, Pitkin, Routt, San Miguel,
 Summit, Garfield, and Grand counties. This region, while claiming 3.96% of
 the state’s population, supports 9.54% of the state’s real estate related
 employment and 9.7% of the state’s real estate related earnings and
 profits.

 In 2005, just over $458 million in property tax revenue was generated in the
 mountain communities. This represents 8.64% of total property tax
 collections in the state. Of that, 70.42% was associated with residential,
 commercial, and industrial properties.

 Just over 13% of total assessed values in the state are in the mountain
 resort regions. But, due to the largely residential nature of the property
 base, only 8.64% of the state’s property tax revenue is collected in this
 region. On a per capita basis, this region has the highest property tax
 burden of $2,448 due to the large percentage of second and vacation
 homes in this region.
The Grand Junction Region
 Grand Junction Region includes only Mesa County and accounts for 3.19%
 area of the state and 2.77% of the population. Overall, the Grand Junction
 region is quite balanced with respect to its relative contribution to the
 state’s economy.

 This region contributes 2.7% and 2.07% respectively of the state’s
 employment and earnings and profits. Real estate related employment
 represents 11.8% of the employment in the Grand Junction region. This
 exceeds the state average by over half a percentage point.

 The Grand Junction region is a relatively low burden property tax region.
 However, in 2005 just over 82% of total assessed valuations and property
 tax revenues were generated from residential, commercial and industrial
 classes of property, those classes most aided by real estate professionals.
Questions?
 Contact

                      Wes Parham
              Government Affairs Coordinator
           Colorado Association of REALTORS®
     309 Inverness Way South, Englewood, CO 80112
     303.790.7099 / 800.944.6550 / fax 303.832.3390
              www.ColoradoREALTORS.com

				
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