Homebuilding in the Twin Cities Remains Steady Despite Rate Hurdles

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Roseville, Minn (September 2023) – Twin Cities single-family home construction saw another strong month in September as mortgage rates continue to rise and supply in the existing market dwindles. Metro builders pulled permits for 656 single-family homes during the month, an 80% increase from the same time last year. Activity in the multifamily construction sector continued to slow, however, with permits pulled for 820 units. This is a 33% decrease in units compared to this same time last year.

“In the face of rising mortgage rates and shrinking existing home supply, homebuilding in the Twin Cities continues to stand strong,” said John Quinlivan, 2023 board chair of Housing First Minnesota. “Builders are working diligently to meet the needs of homebuyers in Minnesota by offering something the existing housing market cannot provide.”

There were 684 permits issued for a total of 1,476 units during four comparable weeks in September, according to the Keystone Report.

“It is apparent that in a climate of the worst housing affordability in 30 years, a change is not just needed but imperative,” said James Vagle, CEO of Housing First Minnesota. “Conditions in our housing market will only continue to worsen if the Legislature does not commit to addressing these challenges during the next legislative session.”

For the month in permits, Corcoran took the top spot with 60 permits issued. St. Michael came in next with 43 permits. Rosemount with 37 permits, Blaine with 35 permits and Cottage Grove with 31 permits rounded out the top five.

For the month in units, Eden Prairie came in on top with 237 permitted units. Shakopee came in next with 216 units, followed by Rosemount with 117 units. Burnsville with 110 units and Rogers with 76 units rounded out the top five.

Download the September chart >>