As the seasons change and autumn rolls in, the demand for new homes in the Twin Cities is not slowing down. Metro builders pulled 628 permits for single-family homes in September, a 22% increase in activity year-over-year.
Multifamily construction also saw another month with positive activity. In September, builders reported 291 multifamily units under construction, reflecting a 61% rise in activity compared to September 2024. Multifamily activity accounted for nearly a third of all construction activity for the month.
“The Federal Reserve’s recent decision to cut rates is good news for homebuyers,” said James Vagle, CEO of Housing First Minnesota. “That said, Minnesota’s housing supply challenges haven’t gone away. Encouraging months like this help, but we’re still in urgent need of more homes of every kind across the state.”
There were 634 permits issued for a total of 919 housing units during the four comparable weeks in September, according to the Keystone Report.
“Strong turnout at the Fall Parade of Homes confirms the solid demand among homebuyers,” said Art Pratt, board chair of Housing First Minnesota. “That demand could become even greater if mortgage rates continue to trend downward through the end of the year.”
For the month in permits, Lakeville took the top spot with 83 permits. Corcoran came in second with 53 permits. St. Michael was next highest with 51. Rosemount was next with 41 permits. Maple Grove rounded out the top five with 36 permits.
For the month in units, Eden Prairie came in on top with 196 permitted units. Minneapolis came next with 102 units, followed by Lakeville with 83 units. Corcoran came fourth highest with 53 units. St. Michael rounded out the top five with 51 units.
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