Pace of home construction slows

The pace of local home construction last month plunged to its lowest level in nearly 16 years, more evidence the area remains in the midst of a housing slump.

Just 118 single-family home building permits — a key measure of new home construction activity — were issued during September in Colorado Springs and El Paso County, according to figures released today by the Pikes Peak Regional Building Department.

That’s the lowest one-month total since 92 permits were issued in November 1991 — a time when the Pikes Peak region was starting to awaken from a real estate collapse in the late 1980s.

For the first nine months of this year, 1,826 single-family permits have been issued in the Springs and El Paso County, down nearly 62 percent from the 2,957 permits issued during the same period in 2006.

The weakness of the local new home market parallels a nationwide housing slowdown. The local resale market also has slumped; homes listed for sale have increased over the past several months, while home sales have fallen sharply.

The housing slowdown has the potential to ripple through the local economy.

The new home industry employs thousands and some builders already have laid off workers.

Also, Colorado Springs and other local governments rely on sales tax revenue from the purchase of lumber, nails, drywall and other building materials and a construction slowdown could hurt tax collections.

For a complete report, see Tuesday's Gazette.