Building permits nosedive in 2005

By Cherry Sokoloski and Dan MacArthur
North Forty News

Building permits in the area rode the "down" elevator in 2005 in Fort Collins and unincorporated Larimer County, but Wellington maintained its pace.

In Fort Collins, permits for single-family detached units plunged 25 percent, down from 892 in 2004 to 677 in 2005. In unincorporated Larimer County, the decline was 13 percent in the same category, down to 304 permits.

In Wellington, which has seen a housing boom in the last few years, building activity for single-family homes was about even with 2004, at 275 permits. Timnath permits in that category declined from 19 to 9. It's expected to be a temporary downturn in Timnath, however, since several developers are breaking ground in the town.

The construction declines are "just part of a long-term trend," according to Felix Lee, neighborhood and building services director for Fort Collins. He noted that home building reached a peak four or five years ago, and numbers are now declining. Part of the reason, he said, is that land in Fort Collins is becoming scarce and more expensive. That creates competition from outlying communities where property is cheaper.

Larimer County has also seen a steady decline in home building. Construction of single-family homes in the county peaked in 2001, with 501 permits granted that year.

In January, building permits for single-family homes were up in both Fort Collins and the county, but Lee said he's unsure if the trend will continue. Some have attributed the busy January to unusually mild weather. Lee anticipates flattening demand and higher costs of construction over the next four to five years.

Overall valuation of Fort Collins single-family building projects declined 17.1 percent in 2005, from $193,989,569 to $160,854,720. In the unincorporated part of the county, valuation of new single-family units was down 7 percent, to $102,341,108. Valuation for new single-family homes rose slightly in Wellington last year, reaching $42,792,503.

In Larimer County, permits were up for manufactured and modular units as well as multi-family units in 2005, but all other categories were down for the year.

Karlin Mueller, office supervisor for Larimer County's building department, said she would be happy if 2006 stays flat instead of declining further. She said contractors coming into her office are staying busy, but many are working in areas outside Larimer County.