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.