SOUTHERN COLORADO — Some builders in Southern Colorado saw their best years ever in 2020 and 2021, right in the middle of the pandemic.
"People were staying home more and they realized that, 'You know, I really don't like my house as much as I used to when I have to live in it 24 hours a day or things have shut down'," said Lain Chappell, a builder in the area.
Now, in 2022, there seems to be a "bump in the road" in the building boom, according to Chappell.
Recently released numbers by the Pikes Peak Regional Building Department (PPRB) show the number of permits issued for single-family homes in October of 2022 were 59% lower than in October of 2021.
"That is a very substantial number... Just keep in mind, last year's numbers on the single-family side of things was unprecedented. It was at a very, very high level for the year," said a spokesperson for PPRB.
Interest rates have continued hiking since March as the Feds try to curb inflation.
"We did have two clients put their projects on hold due to interest rates recently. It's only on hold for now. We still have the signs in their yards and their vacant lots, but they will hopefully be picking things back up once interest rates come down," said Chappell.
While people might have slim pickings when it comes to house hunting, there should be plenty of apartments available, according to data.
"We're well over 4000 apartments (permits) for this year alone, that's already topped last year's total, particularly in the downtown area of Colorado Springs," said the spokesperson with PPRB.
Related coverage:
- Why interest rates keep rising and what needs be done to stop the rate increases
- Fed raises interest rates again to combat inflation, borrowing more expensive
- Another interest rate increase? Expert weighs in on whether the Fed will continue hikes
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