Some people have been asking if there is a construction bubble for new homes in Colorado Springs. If you are in the market to buy a new home in Colorado Springs and surrounding areas or know someone who is you may be asking yourself this question. Is the pace of housing recovery unsustainable?
Not according to Chief Economist of Realtor.com, Jonathan Smoke who explains:
“The havoc during the last cycle was the result of building too many homes and of speculation fueled by loose credit. That’s the exact opposite of what we have today.”
We are still way below historic averages when looking at the number of housing starts over the last 30 years. Especially when comparing the numbers of housing starts during the current recovery (2012 to now) to the massive numbers built during the run up to the housing bubble (2002-2006).
A housing start is defined as the number of permits issued for new construction units and we are comparing permits issued for single family housing starts for the most applicable comparison.
Now that we have seen the National comparison what is going on in El Paso County?
- Permits Issued in 2005 for El Paso County: 6,250
- Permits Issued in 2015 for El Paso County: 2,939
- Permits Issued in July 2005 for El Paso County: 517
- Permits Issued in July 2016 for El Paso County: 299
Source: Census Bureau
New homes (permits issued) in El Paso County are going up at about half the rate they were running up to the housing bubble. Builders can’t keep up with current demand making it an extremely good market to buy new or resale housing in.
If you are looking for new homes in Colorado Springs, Monument, Fountain and surrounding areas it is important to consult with a Realtor who specializes in new home construction to look at a number of variables which will protect your investment.
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