Thursday, June 21, 2012

April multifamily permits hit 10-year high

Through April 2012 in Colorado this year, building permits issued for multifamily construction were up 125 percent, year over year, while permits issued for single-family construction were up 31 percent for the same period.

During April 2012, 884 multifamily permits were issued in Colorado, and 1070 single-family permits were issued. During April 2011, there were 202 multi-family permits issued, and 857 single-family permits issued. The first graph shows permit activity for the first four months of the year since 1998. Through April of this year, there have been 3389 single-family permits and 1992 multifamily permits issued.

The second graph shows that overall, both multi-family and single-family permits in April were at levels well below what were typical over the past decade. During recent months, however, both multi-family and single-family permits have shown a slow upward trend.

During April 2012, the number of new multi-family permits issued was up from April 2011, and was at a ten-year high for April. April 2002, when 1,223 mf permits were issued, was the last time there were more multifamily permits issued during the month.

Single-family permits for April were at a four-year high. April 2008 was the last time there were more single-family permits during April.

Once again, multi-family growth trends outpaced single-family growth, and April 2012 was one of the strongest months for multifamily activity in recent years. We must look back to October 2008 to find any month with more multifamily permits issued.

Summary: As can be seen in the second graph, overall permit activity is building although it remains well below peak levels. Both single-family and multi-family permits were at multi-year highs during April.