Roseville, Minn. (Dec. 27, 2017) – Single-family construction ended the year on a high note, with a 36 percent increase in production over December 2016. Multi-family activity also had a very strong month with a 1,100 percent increase in units. Twin Cities residential construction ended 2017 with 6,113 permits pulled for 13,436 units, the highest number of permits since 2006 and the highest number of units since 2005.
According to data compiled by the Keystone Report for Housing First Minnesota, there were 392 permits issued for a total of 1,015 units during four comparable weeks in the month of December.
“After years of slow growth the housing industry is finally seeing an increase in production that is necessary for the market,” said Bob Michels, president of Housing First Minnesota. “Housing inventory is at an all-time low, we expect to see new home construction pick up in 2018 as demand continues to rise.”
“While we expect to see residential construction pick up the pace, there are several factors that will slow the growth that is needed in the market,” said David Siegel, executive director of Housing First Minnesota. “Our industry is facing a serious labor shortage along with high regulatory costs. Both will continue to constrain the homebuilding industry and have an impact on housing affordability in 2018.”
For 2017, Lakeville took the top spot with 502 permits issued. Plymouth came in next with 380 permits, followed by Blaine with 327 permits. Rounding out the top five are Lake Elmo with 261 permitted units and Woodbury with 258 permits issued.
DEC2017 Permits Data Chart