Proposition 110 better serves Boulder Valley

Since Boulder’s anti-growth sentiments seem not to be going anywhere anytime soon, the condition of our roadways has become increasingly important to our economy in general and to commuters in particular.  The worse the condition of our roads, the longer commutes take and the more money commuters have to spend on auto maintenance — and the less attractive Boulder Valley becomes to workers (and employers). If you have spent any time traveling around Boulder and Broomfield counties, you know our roads are in a sad state of disrepair.  As much as I cast a skeptical eye at many of the proposed tax increases we are asked to consider, something must be done to fix our roads and support the continued vitality of our region.

There are two transportation funding propositions on the ballot this fall, and one of them — Let’s Go, Colorado (Proposition 110) — deserves your vote.

If Proposition 110 passes, there would be a 0.62 percent sales tax over 20 years to provide money for both state and local transportation priorities.  Projected revenue from the tax is $767 million for the first year, and while that sounds like a lot of money, it pales in comparison to the $9 billion transportation funding shortfall that we are facing.

If you have lived in Boulder for a considerable time, you may well remember with consternation how we were taxed with the promise of light rail connections from Boulder Valley to Denver, only to see that money spent on building out the South Metro area’s light rail system, while we were left with nothing.  You would be forgiven for responding with an expletive the first time you heard about these new funding proposals.  However, since the light rail tax debacle, a new advocate — Commuting Solutions — has risen to champion transportation causes in our area and has worked in this case to ensure that money will be allocated to address our most important needs.  In fact, if Proposition 110 passes, Commuting Solutions (and its coalition partners) has ensured that our key local needs are included on the CDOT approved project list, with up to $915 million for the following projects:

• Colorado Highway 119 (Boulder – Longmont)

• Colorado Highway 7 (Boulder – Brighton)

• U.S. 287; Colorado Highway 66 (Longmont – Broomfield)

• 28th Street/Broadway (Boulder)

• Colorado Highway 95/Sheridan (Westminster)

• Colorado Highway 7/I-25 Interchange (Broomfield/Adams)

While I understand and appreciate the sentiment behind “Fix Our Dam Roads” (Proposition 109), our local needs are not guaranteed to be addressed and this $3.5 billion bond measure is not paid for; that is, the legislature would likely be forced to cut the state budget in other areas, causing trade-offs that many citizens might not want to make.

Our roads are in a dire state, which will negatively affect our economy, housing values, and quality of life, if not addressed. I support Let’s Go, Colorado (Proposition 110) because the time has come to repair our roads and Commuting Solutions and its partners have succeeded in ensuring that money will be allocated to projects critical to Boulder Valley if it passes.

Jay Kalinski is broker/owner of Re/Max of Boulder.

Originally posted by BizWest on Wednesday, June 1st, 2018. Original found here.

Posted on October 18, 2018 at 3:29 pm
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Boulder Performs Well Among Top Innovation Cities

Boulder stands tall when compared with much larger metropolitan areas that excel in innovation and entrepreneurship.

A report produced by the Boulder Economic Council compares Boulder with leading innovation centers including Silicon Valley, San Francisco, Austin, Boston, Seattle, Portland, Denver and Raleigh.  Though these metropolitan areas have a much larger population than Boulder, they were selected as peer communities following input from local focus groups and ranking reviews published by Inc., Forbes, and others.

To get a meaningful comparison, data was normalized for population size and other measures in analysis by CU-Boulder’s Leeds School of Business Research Division.

And the news is good, according to findings published in the Boulder Innovation Venture Report. Boulder compares favorably in key success metrics from education and jobs to quality of life. The area is challenged, however, by a lack of affordable housing to supply its workforce with a place to live.

The Boulder metro area ranks first among the peer communities for the percentage of population 25 and up who hold a bachelor’s degree or higher. Over 60 percent of residents have a bachelor’s degree, which is among the highest in the United States.

In the jobs ranking, the City of Boulder has about 100,000 jobs, a number two or three times larger than almost any other U.S. city comparable in population size. Among those jobs, Boulder has the second highest concentration of science, technology, engineering and math (STEM) occupations among all the peer regions.

Boulder has the second-highest per capita venture capital investment in comparison to the peer communities.

In fact, Boulder is ranked number one nationally in the “Bloomberg Brain Concentration Index,” which tracks business formation as well as employment and education in the sciences, technology, engineering and mathematics.

Drilling down into the creative services industry – advertising agencies and web and app developers – outdoor recreation and food manufacturing, Boulder’s concentration of local businesses was significantly higher than peer communities.

Even in coffee shops the Boulder area percolates, achieving a tie with the Seattle-Tacoma-Bellevue metro for the highest concentration of coffee shops among peer communities. Boulder outranked all the peer cities on restaurants per 1,000 residents.

While any amount of time stuck in traffic is too much, Boulder drivers spend less than all but one of the peer communities with 10 percent of total driving time in congestion. Boston drivers spend the most time driving in congestion.

The challenge for Boulder is housing affordability, according to the report. Measured by median metro area home values, Boulder has the third highest housing costs among its peer communities, behind the San Jose and San Francisco regions and just ahead of Seattle and Boston. But the city is not alone – its peer communities face the same challenge. All but one of the metro areas studied for this report ranked among the 25 most expensive housing markets in the U.S.

For the full Boulder Innovation Venture Report, visit: http://issuu.com/boulderchamber/docs/innovation_venture_report_v26?e=33607933/61913820

 

Originally posted here by Tom Kalinski Founder RE/MAX of Boulder on Tuesday, September 11th, 2018 at 3:05pm.
Posted on September 17, 2018 at 6:58 pm
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3 trends that could ruin your home sale plans this summer

Sellers in the Front Range housing market enjoyed a blistering spring season.  Everything seemed to be breaking in favor of sellers — brisk appreciation, multiple offers, favorable terms, and generally quick sales.  However, several trends are emerging that could derail (or at least diminish) a seller’s summer home sale plans.  Here are three of the biggest trends likely to affect our summer market:

1. Rising Interest Rates. For the past several years, economists have been predicting that interest rates will rise from their historic lows (in the 3.5 percent range for a 30-year conventional fixed mortgage).  It turns out that  the eggheads finally got it right. Compared to this time two years ago, interest rates are at least a percent higher — and with the Fed raising their Funds Rate again at their last meeting (and with more raises on the horizon), it seems that even higher rates are coming. It seems now is an appropriate time to refer back to my article discussing the 1 percent Equals 10 Percent Rule, which is a rule of thumb that for each 1 percent increase in mortgage rates, your buying power decreases about 10 percent.  When you consider this with the fact that average home prices in Boulder County have risen about 21 percent in the past two years, it means that the same buyers from two years ago can now afford 31 percent less than they could have back then. 

If you’re thinking, “but I’m a seller, it doesn’t affect me.”  Think of it in these terms: that pool of buyers who would have bought your 2,000 square-foot, three-bedroom house two years ago? They can now only afford a 1,380 square-foot, two-bedroom condo.  That is, the pool of buyers for your home is significantly smaller today.

2. The market hates uncertainty.  To say this has been the least conventional presidency of the modern era is an understatement.  Setting aside the human side of the geopolitical uncertainty caused by the Trump administration (alienating the G7, backing out of the UN Human Rights Council, separating families at the border, etc.), the president has decided to wage trade wars on multiple fronts. And while these acts might be appeasing his base, they are starting to have a negative effect on the economy.  As of mid-June, the stock market has given back all of the gains it made in 2018, due in large part to the trade wars started with China and other countries.  Speaking of China, its investments in the United States have dropped 92 percent this year, and less foreign cash means less money to invest in the housing market.

The effect of this is straightforward — when people feel uncertain and less wealthy (i.e., watching their  world turn topsy-turvy and stock portfolios drop), they are less willing to take risks and make changes. And while home ownership might be the best investment you’ll make, it still represents a risk, especially if you’re a first time home buyer. Thus, the uncertainties in the economy will produce fewer buyers than a steadily rising market.

3. What the frac? The fracking industry in Colorado has flourished since a Colorado Supreme Court ruling in 2016 held that state laws trumped local bans and regulations limiting fracking.  In Weld County alone, there are approximately 23,000 fracking wells, and fights are currently raging over applications to drill near highly populated parts of Boulder and Broomfield counties.  Wells are being placed within 1,000 feet of schools, and this encroaching boom has generated growing health and safety related concerns, from a Colorado School of Public Health study reporting that living near fracking wells may increase the risk of cancer, to a home in Firestone that literally exploded from a leaky underground pipeline.

As the concerns grow, so will buyers’ reservations about buying homes near fracking, which could slow demand in these areas.  Longmont took the extraordinary step of paying two oil and gas companies $3 million to leave town and prevent future drilling.  To be sure, there are competing property rights at issue, but if compromises are not reached that make people feel safe, then homeowners could see their home values fall.

In sum, our market has been red hot this spring, but there are issues on the horizon that could dampen summer sales prospects.  Some of these are likely beyond our direct control, but I encourage you to make your voice heard where you feel you can make a difference.  Your home’s equity (and your conscience) will thank you.

 

Jay Kalinski is broker/owner of Re/Max of Boulder.

Originally posted by BizWest on Wednesday, June 1st, 2018. Original found here.

Posted on June 28, 2018 at 5:15 pm
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