Permits for new Twin Cities single-family homes fell 37% in November
Uncertain economic conditions and interest rates continue to have a chilling impact on homebuilding activity. For the month of November, homebuilders pulled permits for 389 new single-family homes, a 37% drop from last year. Multifamily construction activity also fell in November, with permits pulled for 303 units, a 65% drop from November of last year.
“Homebuyers are still reeling from the sharp increase in mortgage rates earlier this year,” said James Julkowski, the 2022 board chair of Housing First Minnesota. “First-time homebuyers and even move-up homebuyers have been pushed to the sidelines of our housing market slowing down construction of new homes.”
According to data compiled by the Keystone Report for Housing First Minnesota, there were 399 permits issued for a total of 692 units during four comparable weeks in the month of November.
“As homebuilding activity slows, our concern grows for the impact it will have on our overall housing shortage in our region,” said James Vagle, the CEO of Housing First Minnesota. “Our region needs more housing at all price points or homeownership will be further pushed out of reach for many Minnesotans.”
For the month in permits, Maple Grove took the top spot with 62 permits issued. Lino Lakes came in next with 36 permits, followed by Shakopee with 26 permits. Chaska with 23 permits and Ramsey with 22 permits issued rounded out the top five.
For the month in units, Minneapolis took the top spot with 274 permitted units. Maple Grove came in next with 62 permitted units, followed by Lakeville with 37 units. Lino Lakes with 36 units and Shakopee with 26 permitted units rounded out the top five.
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