What will happen in 2022? The market in Colorado was on fire in 2021. High demand and limited inventory seem to keep prices sky rocketing in the first quarter of 2022. And inflation caused by too many dollars circulating throughout the economy partially due to covid relief packages but also coupled with too few goods available from covid supply chain shortages are causing materials prices to rise. This in turn also pushes up real estate prices. Rental prices are continuing to rise while at the same time retail businesses are having trouble maintaining property staffed operations. I believe that "service job" wages are so low now compared to out of control housing prices that many retail and service people have simply given up on the current economy since these jobs seldom support the cost of rent and bills in today’s environment. Normal renters have lowered their life style expectations and moved back in with family, while our traditional first time homebuyers are now making up the population of those who continue and continue to rent homes. Owning a modest home used to be the default definition of the solid middle class and the American Dream. At times it now seems like even this is reserved for the very upper middles class and the lower range of wealthy individuals. Will anything change in 2022? What are your thoughts?
-Joshua Mischke
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