The survey tracks about 35 counties and communities in the Denver area.

But Mike Rinner of Denver-based Genesis Group, which tracks the local housing market, says the HBA undercounted permits in 2000 by not including 728 permits in Parker last year. That brings the 2000 total to 9,844 units, 7.66% over 2001 figures.

''Developers still pulled too many multifamily permits last year,'' Rinner tells GlobeSt.com. ''I would like to see that number come down. Too many apartment complexes are being built.''

Jeff Hawks, an apartment broker with Grubb &Ellis, says developers built about 20% too many units last year. And the overbuilding could continue this year, although whenever possible developers will delay the start of construction until the market shows signs of improving.

In many cases, however, it's not possible, he says.

But it is less expensive to carry the cost of the land on the books for an extra six months or so, rather than carry an empty building on the books, Hawks notes.

Gordon Von Stroh, a business professor at the University of Denver who has authored quarterly reports on apartment vacancies for more than 20 years, tells GlobeSt.com he thinks developers will show more restraint this year.

''But it's not always easy to stop construction on the second phase of an apartment community,'' Von Stroh tells GlobeSt.com ''It's like trying to turn a large ship. It takes time.''

Von Stroh notes that sometimes a developer may have built a large clubhouse that was meant to serve three phases and it would be expensive to maintain and operate if only the first phase of a community is completed.

Instant Insights /

Developers Pull Fewer Multifamily Permits

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