Homebuilding in the Twin Cities metro showed varied signs in August, with an overall 1% decrease in activity over the same time last year. Homebuilders pulled permits for 536 single-family homes in July.
Multifamily activity, however, saw its strongest month of activity since September 2023. Builders reported 743 multifamily units under construction—accounting for nearly 60% of all construction activity for the month.
“Builders are still seeing buyers who want to make a move, even if they’re taking more time to get there,” said John Kraemer, board chair of Housing First Minnesota. “There’s no question that affordability and economic uncertainty are influencing decisions, but the underlying demand for new homes remains.”
There were 548 permits issued for a total of 1,279 housing units during the four comparable weeks in August, according to the Keystone Report.
“Minnesota remains undersupplied, and affordability will continue to be a challenge until we create an environment where more homes of all types and price points can be built,” said James Vagle, CEO of Housing First Minnesota. “Increasing housing supply is essential to expanding opportunities for homeownership and supporting strong, growing communities across our state.”
For the month in permits, Rosemount took the top spot with 68 permits. Lakeville came in second with 47 permits. Farmington was the next highest with 29 permits. Otsego ranked fourth with 28 permits, and St. Michael rounded out the top five with 27 permits.
For the month in units, Plymouth came in on top with 218 permitted units. Cambridge came next with 195 units, followed by Minneapolis with 146 units. Hudson, WI came next with 133 units. Delano rounded out the top five with 75 units.
Download the full data chart here.