Friday, October 28, 2011

September permits: multifamily permits up 88 percent in 2011

During the first nine months of 2011 in Colorado, building permits issued for multifamily construction are up 88 percent, year over year, while permits issued for single-family construction are up 0.8 percent for the same period.

This year, through September, there have been 2,721 multifamily permits issued in Colorado, and 7,268 single-family permits issued. For the same period during 2010, there were 1444 multi-family permits issued, and 7,207 single-family permits.



For the month of September alone, single-family permits are up, year-over-year, by 8.4 percent, and multi-family permits are down by 39.9 percent. There were 821 single-family permits and 337 multi-family permits issued during September 2011. There were 757 single-family permits and 561 multi-family permits issued during September 2010.

The second graph shows that overall, both multi-family and single-family permits in August are at levels below what was typical over the past decade, but that both are increasing. In the case of single-family permits, seasonal factors are contributing to the uptick in permits issued.



During September, the number of new multi-family permits issued was down from August 2011, and was the third-lowest September total for multi-family permits in ten years. 2011 overall has shown some significant growth in multi-family activity, but September activity was not particularly robust.



Growth in single-family permit activity suggests there is some hope among single-family homebuilders, but that demand is restrained. September's permit total for single-family units was at a 3-year high, although it remains well below typical September totals reported over the past decade.



Conclusions: This data further reinforces the notion that interest in new multifamily construction continues to increase at a much faster rate than interest in single-family construction.