Denver Real Estate Blog

Permits for single-family homes dropped 34 percent to 10,986 in 2007, down from 16,263 in 2006, the Home Builders Association of Metro Denver said. New home construction in the Denver area last year fell to its lowest level in 16 years, as builders cranked down on construction because of a sluggish and overbuilt market.

Economist Patty Silverstein said that an estimate of 10,000 lost jobs seems too high, but she said no good data exists that tracks the home-construction market. Silverstein, president of Development Research Partners in Littleton, said she could see a potential drop of 5,000 direct and indirect jobs in the industry. She said a drop in home construction spreads to related businesses ranging from furniture to granite countertop and tile and carpet companies.