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DENVER-In the first eight months of the year, multifamily developers pulled permits for 1,933 units in the metro Denver area, 112% more than the 912 permits pulled during the same time period in 2003, according to the most recent report by the Home Builders Association of Metropolitan Denver. And in August, permit activity that includes Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Elbert, and Jefferson counties, soared by 248% compared with August 2003, although the numbers are relatively small.

There were 306 permits pulled in August, compared with 88 in August2003. In August 2003, all of the permits were pulled in one city,Westminster. This August, 168 permits were pulled in Thornton, north ofDenver, and 138 permits were pulled in Denver.

Permits for attached product, including townhomes, condos and duplexes, rose by 26.5% in the first eight months of the year, comparedwith the same time period last year. There were 3,264 permits pulled though August, compared with 2,581 during the same period in 2003. Attached permit activity in August over August 2003, rose by 62.3%, with 539 permits pulled this August, compared with 331 in August 2003.

Gordon Von Stroh, a professor at the Daniels School of Business at theUniversity of Denver, says he is not worried about overbuilding in theapartment market. Von Stroh releases his own quarterly report on apartments. He tells GlobeSt.com that if developers had pulled 6,000 permits in the first eight months of the year, and not 1,933, he would be worried. Von Stroh says developers are pulling permits for “niche” developments that are special enough to be able to finance. That would include urban, infill products in geographic areas that can handle the demand, transit-oriented developments around light rail stops, and tax-credit projects aimed at low-and moderate-income renters, Von Stroh says.

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