Roseville, Minn – Summer homebuilding in the Twin Cities saw slower momentum in July as interest rates and affordability challenges continue to impact the housing market. Metro homebuilders pulled 452 permits for single-family homes during the month of July. This is a 1% increase over last year.
Additionally, multifamily construction activity has yet to show signs of recovery. Builders pulled permits for 150 multifamily units in July. Although this is an increase over the previous month, overall units were still down 303% over July 2023.
“The demand for new homes hasn’t disappeared; it’s simply on the sidelines waiting for the right moment,” said Art Pratt, board chair of Housing First Minnesota. “Despite the challenges, builders are committed to providing safe and durable homes for Minnesotans when they’re ready and able to buy.”
There were 461 permits issued for a total of 602 housing units during the four comparable weeks in July, according to the Keystone Report.
“Now more than ever, we need to focus on building housing of all types, especially starter homes at lower price points, to reduce the overall cost of housing,” said James Vagle, CEO of Housing First Minnesota. “Without action from the legislature on zoning modernization, the dream of homeownership in Minnesota is at risk for future generations.”
For the month in permits, Woodbury took the top spot with 38 permits issued. Lakeville came in next with 29 permits. Blaine was third highest with 25. Shakopee was fourth with 24 permits and Rosemount rounded out the top five with 23.
For the month in units, Bloomington came in on top with 99 permitted units. Woodbury came next with 38 units, followed by Lakeville with 32 units. Otsego and Rosemount came in fourth with 31 units each. Blaine rounded out the top five with 25 permitted units.
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