Denver is the only county in the metropolitan area that has seen an increase in the number of building permits issued in the first four months of the year, compared with last year, according to data from the U.S. Census Bureau.
Permits were issued for 1,649 residential units in Denver through April, up more than 20 percent compared with the same period last year.
“There’s still fairly strong demand for that higher-priced, higher-density product downtown,” said Jeff Willis, president of the Home Builders Association of Metro Denver.
Homebuilders are continuing to build in close-in communities like Stapleton and Parkfield, a master- planned community at 56th Avenue and Peña Boulevard. Downtown projects such as the Nichols Partnership’s 50-unit Spire condominium tower also helped propel Denver’s increase in permits.
“People are not wanting to commute way out,” said Rusty Crandall, president of KB Home Colorado, which is building in Stapleton and Parkfield. “Anything closer to town seems to do better. With gas prices going up, people don’t want to commute more than 30 minutes in general.”
Jefferson and Adams counties saw the sharpest declines in permits issued but for different reasons.
Jefferson County’s limited land supply is the main reason the number of building permits plummeted nearly 70 percent to 323 in the period through April.
But in Adams County, where land is abundant, the residential market is overbuilt and foreclosures are rampant. The number of permits issued declined nearly 60 percent to 431, compared with last year.
“Foreclosures are having a psychological impact,” Willis said. “Potential buyers are nervous about selling their homes, so they’re not buying.”
In Weld County, where homes are cheaper and foreclosures are high, the number of permits issued dropped almost 31 percent.
“Those low price points are real ly getting hurt with the foreclosures,” said Mike Rinner, senior analyst with the Genesis Group. “There’s either too much competitive supply or people are having a tough time selling their houses.”
Building hasn’t slowed nearly as much in Arapahoe County, which saw a 2.5 percent decline in the number of building permits issued.
The difference there, Rinner said, is that over the last year, builders have created a variety of housing products that appeal to buyers.
“If somebody went out there a year ago and looked at the product that was offered in the Smoky Hill corridor, they had three or four products,” he said. “Now, they have a dozen.”
New floor plans, materials that are easy to maintain and warranties of one to two years are attracting buyers.
“Builders are getting very good at creating ways to distinguish the new house from the resale house,” Rinner said.
Staff writer Margaret Jackson can be reached at 303-954-1473 or mjackson@denverpost.com.
