Homebuilding activity in the Twin Cities metro slowed in October as stubborn mortgage rates and broader economic uncertainty continued to weigh on the housing market.
There were 562 permits issued for a total of 603 housing units during the four comparable weeks in October, according to the Keystone Report. Single-family homebuilding activity fell 15% from the same period last year. Homebuilders pulled permits for 521 single-family homes in October.
“While activity slightly slowed this month, homebuilders continue to see encouraging signs that buyers are interested in making a move,” said John Kraemer, board chair of Housing First Minnesota. “Builders recognize the challenges buyers are facing and are making efforts to build homes that meet their needs and budgets.
Multifamily activity also dropped. Developers reported just 82 multifamily units under construction in October—a drop of 52% in activity from last year.
“As Minnesota prepares for a new chapter in state leadership, there is an opportunity to bring renewed attention to the challenges facing our housing market,” said James Vagle, CEO of Housing First Minnesota. “We look forward to working in collaboration with policymakers to advance solutions that expand housing options, improve affordability, and create more opportunities for homeownership.”
For the month in permits and units, Lakeville took the top spot with 44 permits. Rosemount came in second with 41 permits. Cottage Grove was the next highest with 38 permits. Elk River and Woodbury ranked fourth with 31 permits each, and Otsego rounded out the top five with 26 permits.
Download the full data chart here.