Multifamily activity plummets; single-family shows signs of improvement
Roseville, Minn – Single-family home construction in the Twin Cities remains behind last year’s pace but continues to pick up speed. Multifamily construction activity in the metro continues to slow. Twin Cities builders pulled permits for 524 single-family homes this month, a 9% drop from June 2022. The 9% drop-in single-family activity is the smallest decrease in year-over-year permit activity seen in 2023. Multifamily construction saw even steeper drops with permits pulled for only 201 units, a staggering 165% plunge in units compared to last year.
“As seen with the strong turnout during the Spring Parade of Homes, demand from buyers is not waning,” said John Quinlivan, 2023 board chair of Housing First Minnesota. “While higher mortgage rates continue to put a damper on the housing market, the lack of existing housing inventory is encouraging many homebuyers to build new.”
There were 540 permits issued for a total of 725 units during four comparable weeks in the month of June, according to the Keystone Report.
“There is a severe undersupply in our market right now, which is completely pricing out first-time homebuyers and move-up buyers,” said James Vagle, CEO of Housing First Minnesota. “There has never been a more critical time for our state to find ways to build affordable homes for all Minnesotans.”
For the month in permits, Woodbury took the top spot with 47 permits issued. Blaine came in next with 37 permits. Lakeville was next with 36 permits. Cottage Grove and Rogers rounded out the top five with 29 permits each.
For the month in units, Lakeville came in on top with 129 permitted units. Cambridge came in next with 66 units, followed by Woodbury with 47 units. Blaine with 37 units and Cottage Grove with 34 units rounded out the top five.