Roseville, Minn – Despite mortgage rates beginning to increase, Twin Cities homebuilding was strong in October. Metro homebuilders pulled 664 permits for single-family homes – a 13% increase over the same time last year.
Multifamily construction, however, posted its first year-over-year increase since February. Builders pulled permits for 354 multifamily units in October which is a 6% jump in activity from last year.
“Demand for new homes remains strong as we approach the last quarter of the year,” stated Art Pratt, chair of Housing First Minnesota. “Even with mortgage rates beginning to rise again, buyers are not willing to sit on the sidelines.”
There were 675 permits issued for a total of 1,018 housing units during the four comparable weeks in October, according to the Keystone Report.
“Strong activity in both sectors of the market this month is encouraging,” said James Vagle, CEO of Housing First Minnesota. “Despite this increase, the Minnesota housing market continues to lack adequate housing supply. Unless legislative action, like zoning reform, is taken, this crisis will only continue to worsen.”
For the month in permits, Rogers took the top spot with 59 permits issued. Corcoran came in next with 50 permits. Rosemount was third highest with 49. Shakopee was fourth with 345permits and Woodbury rounded out the top five with 39.
For the month in units, Bloomington came in on top with 208 permitted units. Rogers came next with 59 units, followed by Rosemount with 49 units. Burnsville came in fourth with 48 units. Shakopee rounded out the top five with 45 permitted units.
Download the full October release here.