Single-family home construction activity in the Twin Cities saw another promising month in October amid woes in the existing market. Metro builders pulled permits for 581 single-family homes during the month, a 110% increase from the same time last year. Activity in the multifamily construction sector continued to see a slowdown in activity with permits pulled for 334 units. This is a 27% decrease in units compared to this same time last year.
“Strong traffic during the Fall Parade of Homes demonstrates that demand for homeownership has not faltered, but it is being pushed to the sidelines,” said John Quinlivan, 2023 board chair of Housing First Minnesota. “As supply in the existing market continues to dwindle, buyers are turning to new construction to fill the need for homes in the Twin Cities.”
There were 595 permits issued for a total of 915 units during four comparable weeks in October, according to the Keystone Report.
“Homebuyers are still finding a way in a tough market, which shows you the value of homeownership in Minnesota,” said James Vagle, CEO of Housing First Minnesota. “We need to modernize zoning laws to legalize starter homes, to support first-time buyers, and safeguard homeownership opportunities for future generations of homebuyers.”
For the month in permits, St. Michael took the top spot with 56 permits issued. Rogers came in next with 46 permits. Corcoran, Cottage Grove, and Woodbury all issued 34 permits to round out the top five.
For the month in units, Prior Lake came in on top with 201 permitted units. Farmington came in next with 94 units, followed by St. Michael with 56 units. Rogers with 46 units and Woodbury with 40 units rounded out the top five.
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