Roseville, Minn – The impacts of mortgage rates are beginning to show in the new construction sector. Metro homebuilders pulled 374 permits for single-family homes throughout the month of February – a 9% decline from last year.
Multifamily construction saw a sharp decline in activity in February with permits being pulled for just 10 units.
“Although the industry is seeing a slight slowdown in the market due to stubborn mortgage rates, demand for new homes is not waning,” said Tim Fohr, board chair of Housing First Minnesota. “With the spring season approaching, homebuilders are prepared to meet the market where it is and deliver much-needed inventory.”
There were 378 permits issued for a total of 384 housing units during the four comparable weeks in February, according to the Keystone Report.
“Discussions surrounding housing are ramping up at the capitol as inventory in the housing market continues to tighten,” said James Vagle, CEO of Housing First Minnesota. We urge lawmakers to act now to reform zoning and other barriers to keep homeownership attainable for future generations. The time to act is now.”
For the month in permits, Lakeville took the top spot with 43 permits issued. Otsego came in second with 40 permits. Lake Elmo was third highest with 29. Woodbury was fourth with 22 permits. Ramsey rounded out the top five with 20 permits.
For the month in units, Lakeville came in on top with 43 permitted units. Otsego came next with 40 units, followed by Lake Elmo with 29 units. Woodbury came in fourth with 22 units. Ramsey rounded out the top five with 20 permitted units.
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