Tuesday, January 17, 2012

Multifamily permits in Colorado up 110 percent through November 2011

During the first eleven months of 2011 in Colorado, building permits issued for multifamily construction are up 110 percent, year over year, while permits issued for single-family construction are up 2.4 percent for the same period.

This year, through November, there have been 3,521 multifamily permits issued in Colorado, and 8,687 single-family permits issued. For the same period during 2010, there were 1,671 multi-family permits issued, and 8,477 single-family permits.

For the month of November alone, single-family permits are up, year-over-year, by 14.3 percent, and multi-family permits are up by 66 percent. There were 724 single-family permits and 186 multi-family permits issued during November 2011. There were 633 single-family permits and 112 multi-family permits issued during November 2010.

The second graph shows that overall, both multi-family and single-family permits in November were at levels below what were typical over the past decade, but that both are increasing.

During November, the number of new multi-family permits issued was up from November 2011, and was the highest November total reported in three years. 2011 overall has shown some significant growth in multi-family activity.

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