Twin Cities single-family construction continued the trend of double-digit gains in February with permits pulled for 536 new homes, a 32% increase over February of 2020. Multifamily construction in the metro area fell by 16% when compared to this month last year, with permits pulled for 410 units.
“The dream of homeownership remains strong and millennials are now entering their prime home purchasing years. This combined with low interest rates and COVID-19 has buyers taking action,” said Todd Polifka, 2021 president of Housing First Minnesota. “Building a new home has an increased appeal to individuals and families who have been looking to get into the market for the first time, or are finding their current home no longer fits their needs.”
According to data compiled by the Keystone Report for Housing First Minnesota, there were 558 permits issued for a total of 946 units during four comparable weeks in the month of February.
“One year after this pandemic started few would have thought new home construction would be in the position it is in today,” said David Siegel, executive director of Housing First Minnesota. “Despite the tough supply chain issues and skilled labor shortage, homebuilders are trying to make a dent in our housing markets’ dire shortage of homes for sale.”
For the month, Lakeville took the top spot with 59 permits issued. Woodbury came in next with 45 permits, followed by Otsego with 42 permits. Cottage Grove with 39 permits and Dayton with 30 permits rounded out the top five.
