Mounting economic stressors are creating pressure on homebuilding activity in the Twin Cities. Metro builders pulled 590 permits for single-family homes in May – an 11% reduction in year-over-year activity.
Multifamily construction also recorded an extremely low month of activity with just 22 units on record for May.
“We’re generally on pace for the year, with single-family construction even outpacing 2024 so far, but May brought a noticeable dip in activity compared to last year.,” said James Vagle, CEO of Housing First Minnesota. “The demand from buyers remains strong – the challenge remains the broader economic headwinds. Elevated interest rates, affordability concerns, and uncertainty around consumer confidence are still holding many potential buyers back.”
There were 593 permits issued for a total of 612 housing units during the four comparable weeks in April, according to the Keystone Report.
For the month in permits, Shakopee took the top spot with 43 permits issued. Rosemount came in second with 39 permits. Cottage Grove was third highest with 38. Woodbury came in fourth with 34 permits each. Lake Elmo and St. Michael rounded out the top five with 30 permits each.
For the month in units, Shakopee came in on top with 43 permitted units. Rosemount came next with 39 units, followed by Cottage Grove with 38 units. Woodbury came in fourth with 34 units. Lake Elmo and St. Michael rounded out the top five with 30 permitted units each.
Download the full data chart here.