Residential construction activity in the Pikes Peak region saw a rebound in 2024, even as the number of building permits issued for new apartment units dropped by a staggering 63% compared to the previous year.

According to a recent report from the Pikes Peak Regional Building Department, which oversees permits in El Paso County, Colorado Springs, Fountain, Manitou Springs, Green Mountain Falls, Monument, Palmer Lake, and Woodland Park, the steep decline in apartment permits has led to a “dramatic cooling off” in the region’s commercial construction sector.

Only 838 apartment units were permitted in 2024, marking the second consecutive year of decline and the lowest number in a decade.

Despite the slowdown in permitting, thousands of new apartments remain in the pipeline. Nearly 3,800 units were completed and became available for renters in 2024, up from more than 3,000 in 2023. The agency anticipates similar numbers this year, with more than 6,000 units still under construction.

Meanwhile, permits for single-family homes, duplexes, and townhomes saw an increase last year, reversing a two-year decline. The region also permitted a few dozen new residential condominiums, the first since 2021.

The building department issued over 16,000 reroofing permits, many related to hail damage from storms in 2023.

The total construction value in the Pikes Peak region for 2024, including commercial projects, reached approximately $3.4 billion.