The pace of home construction in the Colorado Springs area rose to a 15-year high last month as housing demand remained strong and a shortage of existing homes available for sale helped keep buyers looking for the new Bring home market.
A report from Pikes Peak's regional construction division showed the agency issued 450 building permits for construction of single-family homes in El Paso County in September. This is an increase of almost a third over the previous year and the highest total since 482 permits issued in August 2005.
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In the first eight months of 2020, the regional construction department issued 3,282 single-family home permits, almost 22% more than in the same period last year, the agency's report shows.
The Pikes Peak region has seen strong employment growth in the past. Despite the COVID-19 pandemic, more and more people are moving to the area and have fueled demand for new homes, said Brian Bahr, founder of Challenger Homes in Colorado Springs.
The Colorado Springs real estate market remains hot in late summer
Low mortgage rates have also helped attract home buyers to the market, he said.
While the real estate market generally remains strong in the face of the pandemic, the supply of homes on the new and resale side of the market is "likely lower than ever in Colorado Springs compared to demand," Bahr said.
The Pikes Peak Association of Realtors has reported historically low inventory levels of homes for sale in the past few months. At the same time, builders are trying to keep up with demand, but some have encountered difficulties due to the shortage of labor and building materials, Bahr said.
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Housing shortage isn't just a problem in Colorado Springs, however, Bahr said.
"While we are seeing high demand and very little supply here, the trend can be seen in almost every community across the country," he said.