Tuesday, July 3, 2012

Multifamily permits up 159 percent in 2012 through May

Through May 2012 in Colorado this year, building permits issued for multifamily construction were up 159 percent, year over year, while permits issued for single-family construction were up 33 percent for the same period.

During May 2012, 636 multifamily permits were issued in Colorado, and 1,262 single-family permits were issued. During May 2011, there were 131 multi-family permits issued, and 909 single-family permits issued. The first graph shows permit activity for the first five months of the year since 1998. Through May of this year, there have been 4,651 single-family permits and 2,628 multifamily permits issued.

The second graph shows that overall, both multi-family and single-family permits in May 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 May 2012, the number of new multi-family permits issued was up from May 2011, and was at a four-year high for April, and was the second-highest month for multifamily permit activity in ten years. 

Single-family permits for May were also at a four-year high. May 2008 was the last time there were more single-family permits during May which was before the financial crisis. 

Once again, multi-family growth trends outpaced single-family growth, and May 2012 was one of the strongest months for multifamily activity in recent years.

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 May suggesting that overall demand for new housing construction continues to heat up, although at a very moderate pace for single-family units.