Summer homebuilding in the Twin Cities metro is continuing to feel the squeeze of economic shifts. Overall homebuilding activity in the metro was statistically flat year-over-year. Metro builders pulled 541 permits for single-family homes in June – a 1% marginal increase in year-over-year activity.
Multifamily construction, however, reported 189 units under construction during the month of June. Multifamily production made up over a quarter of all building activity for the month.
“Summer homebuilding in the Twin Cities continues to show resilience, even as economic uncertainty keeps some buyers on the sidelines,” said James Vagle, CEO of Housing First Minnesota. “The question remains how quickly market conditions will improve to allow that demand to translate into action.”
There were 546 permits issued for a total of 730 housing units during the four comparable weeks in June, according to the Keystone Report.
“Builders remain active, even as the pace has been more measured with ongoing challenges in both the single-family and multifamily markets,” said Art Pratt, board chair of Housing First Minnesota. “Still, we’re optimistic about what’s ahead — there’s strong potential for momentum to grow, and builders are well-positioned to respond when market conditions improve.”
For the month in permits, Lakeville and Woodbury tied for the top spot with 41 permits each. Otsego and Rosemount tied for second with 28 permits each. St. Michael was next highest with 24. Rochester was next with 22 permits. Lino Lakes and Victoria tied to round out the top five with 20 permits each.
For the month in units, Minneapolis came in on top with 103 permitted units. Waconia came next with 96 units, followed by Lakeville and Woodbury with 41 units each. Otsego and Rosemount tied for fourth highest with 28 units each. St. Michael rounded out the top 5 with 24 units.
A full report of June’s data can be found here.