What's makes the Denver Metro Area different from other large urban areas in the United States? In most of America's large urban areas, residents know that it's almost always cheaper to live out in the suburbs than inside the city. For example, it costs an average of $6,000 more a month to live inside New York City, or San Francisco than it costs to move further out into suburban residential areas, according to Denver's 7NEWS.
Obviously, these cities are famously expensive; however, Denver's housing market is also quite hot. It just doesn't follow the same pattern as most major cities. It's important for employers to understand the market in order to help potential employees overcome some of their objections to moving to this great city.
How Employees in Denver Prefer to Spend Their Housing Dollars
On average, Americans have to spend about $9,000 more each year to enjoy a more urban lifestyle vs. a suburban one. This truism about the city vs. the suburbs doesn't hold up in Denver. Residents of the Mile High City actually pay an average of $3,600 more annually to spread out in the burbs.
People from other urban areas might wonder why Denver residents pay a premium to suffer from longer commutes. Of course, families in the suburbs typically enjoy larger homes and yards and access to recreational areas and highly rated suburban schools. All over the United States, families may chose suburban living with their kids in mind; it's just that in Denver, this choice actually tends to cost more.
In addition, the gap is likely to widen. The Denver Post published an article that discussed how overvalued Denver Metro housing prices have grown. This doesn't mean that homes in Denver cost more than they do in all other cities; it just means that the price is high in relation to average incomes. A combination of popularity, expected job growth, and slow building mean that real estate experts expect this trend to continue.
Can Relocation Benefits Help Attract Employees to Denver?
While current homeowners may enjoy increases in their home's value, new Denver home buyers can face affordability challenges when they look for housing in order to relocate. Obviously, many recruits also face some complications when they need to juggle selling their current home in order to purchase a new one. In the past, many companies offered mortgage assistance as part of a relocation package that could help attract top employees in a competitive job market.
These corporations had relationships with brokers and lenders, and they could direct their recruits to these services. The services understood relocation and would benefit the sponsoring companies and the new employees by simplifying the mortgage process. Sometimes these relocation packages even included an offer to purchase the existing home in order to facilitate the purchase of the new one. In other cases, they might find suitable rental housing until they could sell the current house.
According to the Wall Street Journal, these types of relocation packages have been seriously cut over the last decade. Perks like mortgage and down payment assistance may help relieve the stress over a move to a new city, especially an expensive one, but they've become much more rare. At the same time, employers who are struggling to compete to attract talent may find that offerings like this could help sweeten the pot more even more than the highest starting salaries or other kinds of benefits.
Top recruits may decline great offers because the companies just don't make relocation practical in light of economics and the current housing market. Developing the right relocation package can help your business get the best applicants to say yes to your offer because you've relieved most of the stress of moving.
Count on ICS to Deliver Talent to Denver
At ICS in Denver, we are proud to work with great businesses in a fantastic metro area. We want to work with you to hire the best people to help you exceed your goals and turn your corporate vision to reality. Visit our Denver staffing page to contact us. We're eager to learn about your recruitment needs, so we can help you meet them.