May 10, 2024 - News

Denver's single-family home construction climbs 7%

Line chart showing that the year-over-year change in single-family housing units in the Denver metro area was 2.5% in January 2004, -51.2% in January 2009, 50.7% in February 2024 and 7.2% in March 2024.
Data: Census Bureau via FRED, Federal Reserve Bank of St. Louis; Chart: Axios Visuals

Single-family home construction in metro Denver is up 7% compared to last year, per fresh figures from Federal Reserve Economic Data.

Why it matters: New construction could mean more flexibility and affordability for homebuyers in our tight and pricey market.

State of play: Mayor Mike Johnston is attempting to overhaul the city's building department — which has struggled for years to improve its lengthy permit-approval process — and shorten permitting time by 30% this year.

  • Johnston says a lack of affordable housing is "maybe the most important issue Denver is facing."

The big picture: Nationwide, single-family home construction is down year-over-year, but it's grown 30% from March 2020 to March 2024, per FRED data.

  • Yes, but: Construction isn't evenly spread. Salt Lake saw a bigger increase than most of the country. But in New Orleans, for example, activity is down by nearly half.

The intrigue: Some new-build communities are offering lower mortgage rates, an enticing deal as rates touched 7.5% in April.

What they're saying: New developments in Denver have numerous benefits in the current market, with developers offering permanent rate buy-downs, closing cost incentives, home warranties and more, Milehimodern marketing director Ray Quenneville tells us.

Zoom in: For buyers on the hunt, here are four new developments on the Denver market right now:

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