The construction landscape in the Pikes Peak region has undergone significant changes, particularly in the issuance of building permits. A recent report from the regional building department highlights a substantial decline in new apartment units, marking a dramatic slowdown in commercial construction. Conversely, there has been an increase in permits for single-family homes and other residential structures. Despite fewer new permits, thousands of apartments are still coming online due to ongoing and recently completed projects. The total value of all construction activities, including commercial projects, reached approximately $3.4 billion in 2024.
Apartments Face Construction Slowdown
The number of permits issued for new apartment units experienced a sharp decline, dropping by 63 percent compared to the previous year. This marks the second consecutive year of decrease, with only 838 units permitted in 2024—the lowest in a decade. Despite this downturn, nearly 3,800 new apartment units became available last year, up from over 3,000 in 2023. The agency anticipates similar numbers this year as around 6,000 apartments remain under construction.
The reduction in apartment permits can be attributed to various factors, including market saturation and economic uncertainties. However, the influx of new units from already initiated projects ensures that the rental market continues to expand. Notable projects like Patriot Park Apartments and Fiona Apartments, with 294 and 321 units respectively, have contributed significantly to the housing stock. Additionally, the Epicenter Apartments complex is set to add another 408 units to the area. These developments highlight the ongoing efforts to meet housing demands despite the permit slowdown.
Residential and Commercial Sectors Show Mixed Results
In contrast to the decline in apartment permits, the issuance of permits for single-family homes, duplexes, and townhomes saw a notable increase. The Pikes Peak Regional Building Department issued 2,854 permits for single-family homes, representing a 7 percent rise compared to 2023. This upward trend follows two years of declines and signals renewed interest in residential development. Furthermore, the first residential condominium units since 2021 were also permitted, adding diversity to the housing market.
The commercial sector also showed mixed results. While the total plan submittals decreased by 6 percent, the number of inspections increased by 3 percent. Significant commercial projects, such as Abrams Elementary School and King Soopers stores in Fountain and Flying Horse, underscore the continued investment in infrastructure. The CSFD Fire Station #24 and Bentley Commons, an affordable housing project with 168 units, further exemplify the diverse nature of construction activities. The overall construction value of $3.4 billion reflects the robust economic activity in the region, despite the challenges faced by the apartment sector.