IXI Market Insights in Action

The Denver metro area had a gross metropolitan product of $157.6 billion in 2010, making it the 18th largest metro economy in the U.S. Because Denver is the largest city within 500 miles, it has become a natural location for storage and distribution of goods and services, as well as home to a large number of technological firms and innovative energy companies.

• Income and Retail Sales: Average household income rose by an extraordinary 9% gain from $89,346 to $97,354 in 2010. These income gains have boosted the local economy positively: total retail sales were $39.7 billion in September 2011, which is roughly equivalent to pre-recession level sales from 2007.
• Assets: Total financial assets rose by $22.5 billion in 2010, an impressive 10.6% increase over 2009 assets, resulting from an $8.7 billion increase in stock equity holdings and a $10.1 billion rise in mutual fund holdings. Households in the Denver area also rebalanced their deposit assets from CDs (down 28%) to checking accounts (up 6.7%), money market accounts (up 4%), and savings accounts (up 17%).
• Home Mortgage: Serious mortgage delinquency rates (defined as loans 90 days or more past due or in foreclosure) for first mortgages declined 33.8% as of September 2011 since peaking in February 2009. As of September 2011, serious delinquency rates in the Denver metro area were just under 3%, two full percentage points lower than the national average. The average balance on home equity lines of credit in the Denver metro area increased by $432 in 2010 which is about 1% of the average home equity credit balances outstanding.
• Credit Balance: Households in Denver decreased their total average credit balance by $465 and dropped outstanding bankcard balances per account by $131 in 2010, consistent with a national trend of deleveraging in consumer credit. Serious delinquency rates in consumer finance accounts (defined as 60 days or more past due) fell steadily in mid 2011 and have reached their pre-recession level as of September 2011.

Denver’s rich mineral resources and hi-tech industries will continue to generate strong growth for the area in the near-term. With a slightly lower unemployment rate (8.5%) than the national average (9.1%) as of August 2011, Denver should see continued strengthening in its economy.