Single-family home construction enters positive territory for first time since last year
Roseville, Minn – Twin Cities single-family home construction in July recorded its first month of positive activity since January of 2022. Metro builders pulled permits for 446 single-family homes during the month, a 38% increase from last year. Multifamily construction, however, continued to stumble with permits pulled for 605 units, a 38% drop in units compared to last year.
“The dynamics in our housing market are shifting,” said John Quinlivan, 2023 board chair of Housing First Minnesota. “The existing market just can’t keep up with Minnesotans looking to buy homes. Minnesota’s homebuilders are problem solvers and are offering homebuyers incentives to help them overcome the impacts of higher interest rates.”
There were 479 permits issued for a total of 1,051 units during four comparable weeks in the month of July, according to the Keystone Report.
“Our current housing market has left many first-time homebuyers and move-up buyers completely priced out of the market,” said James Vagle, CEO of Housing First Minnesota. “As the housing market in Minnesota shows signs of recovery, it is now more crucial than ever to allow the industry to build affordable starter homes and bring down the cost of housing.”
For the month in permits, Lakeville took the top spot with 43 permits issued. Blaine came in next with 28 permits. Woodbury with 23 permits, Lake Elmo with 22 permits, and St. Michael with 21 permits rounded out the top five.
For the month in units, Rosemount came in on top with 185 permitted units. Minneapolis came in next with 154 units, followed by Monticello with 107 units. Lakeville with 85 units and Maple Grove and Stillwater both with 53 units rounded out the top five.