2026 economic forecast favorable

2026 economic forecast favorable for housing market stability

Colorado and Boulder County’s economic outlook offers reassuring news for the residential real estate market.

The region is expected to enter 2026 on a solid economic footing, with key indicators forecast to remain stable, including employment, income and gross domestic product (GDP), according to the 61st annual Colorado Business Economic Outlook from the Business Research Division (BRD) at the Leeds School of Business.

BRD points to the diverse mix of industries across key sectors as expected to support modest growth, even amid slower population growth and ongoing uncertainty.

For Boulder County homeowners and buyers, the news is good: a healthy labor market and steady incomes support buyer confidence and long-term housing values.

A record of growth

For 15 years — from 2009 to 2024 — Colorado has been among the strongest-performing state economies in the nation. The state ranked in the top 10 nationally in growth of GDP, population, labor force, employment, and home price appreciation, writes BRD. The pace has cooled recently, in part due to slowed net migration and population growth, creating headwinds for labor force growth and job creation.

Still, ‘slower’ growth does not mean ‘slow’ growth.

Colorado continues to rank among the top 10 states for per capita income, average annual pay and labor force participation. For instance, in 2025, personal income grew 5%, and per capita personal income grew 4.3%. BRD lays out additional details:

·Statewide employment is projected to grow 0.6% in 2026, up slightly from 1.1% in 2024 and an estimated 0.4% in 2025.

·Unemployment is expected to go down to 4.1% in 2026, from an estimated 4.5% in 2025.

·Real GDP growth is projected at 2.9% in 2026, outpacing the 2% and estimated 2.1% growth rates in 2024 and 2025, respectively.

·Incomes are expected to rise, with personal income increasing 4.5% and wage and salary income up 3.6%.

Boulder County stands out

Boulder County continues to perform well in the state’s forecast, notes BRD. Sectors including life sciences, technology, and outdoor recreation continue to drive economic activity, supported by federal research institutions, CU Boulder and a strong startup culture.

Professional and Technical Services account for the largest share of employment at 17.8%, followed by health care and social assistance, manufacturing, and emerging sectors such as quantum computing. Aerospace, bioscience, clean tech, information technology, natural and organic products, and outdoor recreation and tourism also play major roles, with tourism further boosted by the Sundance Film Festival, which is set to move to Boulder in 2027.

With its forward-thinking business climate and reputation for an excellent lifestyle, the area continues to attract companies looking to locate near top-tier talent and research resources. This results in higher-income jobs and reinforces Boulder County’s position as a strong and desirable place to live and work, supporting homeownership and rental demand.

BRD says the economy is well-positioned for long-term stability as recent labor market data reflects:

·Boulder County’s unemployment rate fell 1% year-over-year in August 2025, to 3.7%, matching the statewide figure and coming in below the nation’s 4.5%.

·Employment grew 1.1% in August 2025 year-over-year, marking the first month the area’s employment rose by more than 1%.

Venture capital adds another layer of support. In the third quarter of 2025, firms raised $251.4 million—a 24% increase compared to the same period last year, reports BRD.

Headwinds persist

Despite the positive outlook, Boulder County is not immune to broader challenges. Remote work and elevated office vacancies continue to reduce foot traffic in commercial areas.

While recent employment and unemployment data are encouraging, overall job growth in the city of Boulder has been limited in 2025, with employment growth averaging flat and unemployment at 4.6%.

Population growth is expected to remain subdued in 2026, with a 0.6% statewide increase, driven equally by natural increase and net migration.

Bottom line

BRD’s 2026 Business and Economic Outlook points to a modestly growing economy, even amid economic challenges nationwide. For Boulder County homebuyers, that stable foundation reinforces the area’s enduring appeal as a place to own a home.

Read the 2026 Colorado Business Economic Outlook by the Business Research Division at the Leeds School of Business (https://www.colorado.edu/business/media/20290).