The past 5 years have seen stagnate real prices and in 2006 Boulder real home prices actually fell nearly $5,000 resulting in the worst year since 1987. Despite falling real prices in 10 of the last 29 years, Boulder home prices have never fallen in nominal terms since records began in 1978. Additionally, the affordability index has become increasing positive over the past 6 years, bucking the national trend.

One of the primary reasons the housing market has been slow to resume the gains of years’ past, is that the tech recovery has been uneven in the craze of merger and acquisition. A poignant example of this trend has been the city’s sixth largest employer – Level 3 Communications – who has helped to consolidate the industry, but itself is a target of takeover rumors. Due to such mixed signals it is expected that nominal prices will likely stagnate over the next few years before returning to a long term growth phase.

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