COLORADO SPRINGS, Colo. (KOAA) — Colorado Springs has experienced a dramatic slowdown in apartment construction permits, with zero permits issued in July and August 2025 after hundreds were approved earlier in the year. So far, 28 permits have been approved in September.
The city, known for continuous growth, saw a significant drop in apartment permits over recent years.
In 2022, approximately 5,000 permits were issued for apartment complexes. That number dropped to roughly 2,500 in 2023 and dropped again to 838 in 2024.
So far in 2025, 892 permits have been issued, already outpacing 2024 by 54 permits despite the summer lull.
"Interest rates do remain high, so it's not the best climate right now to develop, however, interest rates have been high for a while and we were seeing significant permits for apartments," said local housing expert, Jill Gaebler, with Pikes Peak Housing Network.
Pikes Peak Regional Building Development said two straight months with no apartment permits isn't too out of the ordinary for the market.
Legal challenges may deter developers
The falling permit numbers could result from recent legal action taken by anti-housing groups against developers.
"We've seen litigation, a lot of litigation over the last year. And that's really having a chilling effect from our out of state developers who see that increased risk means increased costs, and further delays," said Gaebler.
The slowdown could also be due to backfilling vacancies from the recent construction boom.
Many residents have expressed satisfaction with the drop in permits, citing concerns over rising costs and vacant units.
One viewer took to our Facebook page to write: "Outrageous rental prices even with buildings standing full of empty units. We need a moratorium on building until it benefits Springs residents as much as it benefits the developers."
However, Gaebler says such a moratorium isn’t realistic.
"In America we don't have moratoriums like that. We let the market determine when is the best time to build.”
According to the Colorado Housing & Finance Authority, about 7% of apartments in Colorado Springs are vacant, a number considered "market healthy" by industry professionals.
"There's always units that are being repaired. There's units that are awaiting occupancy," says Gaebler.
Market cycles expected to continue
The housing market follows predictable patterns of growth and decline.
An estimated 6,167 units per year are needed with current growth projections in Colorado Springs, meaning the current lapse probably won't last forever.
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