It is a fact that a city’s ability to create jobs directly affects the housing market. The United States alone is known for the ability of its residents to move to where the jobs are, and this has helped the nation maintain its position as the world’s top economy.

This is no different with Greeley as most of Greeley real estate owners are residents employed in multinational and local companies within the city. In general though, households’ decisions to move depend not only on job prospects but also on the relative cost of housing.

Current Job Market. In recent years, Greeley and Weld County have seen a volatile economy, accompanied by reductions in governmental services, the closure of public schools, and the downsizing or elimination of businesses. These factors are not controllable by the city, but it directly affected the ratio of job growth to population.

Future Job Market. It's a good news though that future prospects are much more favorable. According to the U.S. Board of Labor Statistics, Weld County led the State of Colorado in new job growth by percentage in 2010. Especially encouraging are corporate additions and relocations, including three Vestas factories (one in Greeley), announced new factory openings by Leprino Foods (Greeley), Hexel, Bach Composites, and Abound Solar.

Moreover, the Niobrara shale formation is driving corporate expansion in the energy industries with two new expansions in Greeley in 2010 (Schneider Oil and Noble). This influx of job opportunities is accountable by Greeley’s qualified workforce, low property taxes, natural resources, and strategic location.

Average Wages Paid. In addition to the number of jobs available, average wages paid are strongly correlated with the ability to afford housing. When inflation outpaces wage growth, residents’ standard of living decreases. Weld County, along with surrounding counties, was negatively affected by the post-2007 recession with job losses concentrated in the construction, banking, and mortgage finance industries.

While there is sufficient multi-family housing to accommodate Greeley’s population in the near-term, those family incomes which are derived from the retail or service sectors of the economy will have difficulty maintaining adequate housing given the steadily increasing costs of living. A wide range of incentives and partnerships may need to be explored to address this growing need.

However, there is a counteractive positive effect of the recession. Although average wages in Weld County have lagged behind the adjacent counties, Greeley still has successfully attracted new businesses and currently leads the state in new job growth. This situation underscores Greeley’s need to continue to seek new business investment that will employ local residents in higher paying jobs.

Now, For The Real Deal. With the facts provided in this article, it is undeniable that Greeley needs not just more jobs, but higher paying jobs. Unless wages go up, the gap between what workers pay for a Greeley real estate and what they earn will continue to grow.

Moreover, the current situation precludes renters from achieving home ownership. Because workers in the service and retail industries currently may pay more than 30% of their wages for rent, they are unable to amass sufficient savings for the down payment on a home. As a result, they are caught in a high-rent cycle from which it is difficult to escape.