Homebuilding activity in the Twin Cities metro area eased slightly in April as broader macroeconomic pressures—including slower job growth and market uncertainty tied to geopolitical instability in the Middle East—began to weigh on consumer confidence and homebuying decisions. Homebuilders pulled permits for 559 single-family homes in April, a contraction of 8% compared to the same time last year.
Multifamily activity in the metro slowed substantially in April. Builders reported 18 multifamily units under construction. Multifamily activity accounted for just 3% of all construction activity in April.
“April’s numbers show a bit of a pause, but we’re still seeing steady interest from buyers who are ready to move when the timing is right,” said John Kraemer, board chair of Housing First Minnesota. “Builders here are staying focused on delivering the kind of homes people need, and we’re confident in the months ahead.”
There were 561 permits issued for a total of 577 housing units during the four comparable weeks in April, according to the Keystone Report.
“As we head into the final stretch of the legislative session, there’s a real opportunity to make meaningful progress on the challenges facing our housing market,” said James Vagle, CEO of Housing First Minnesota. “Lawmakers should be focused on practical, pro-housing solutions that reduce barriers to building and help increase supply, so more Minnesotans have a fair shot at homeownership.”
For the month in permits, Lakeville took the top spot with 75 permits. Rosemount came in second with 73 permits. Shakopee was next highest with 38. Cottage Grove ranked fourth with 33 permits and Rogers rounded out the top five with 26 permits.
For the month in units, Lakeville came in on top with 90 permitted units. Rosemount came next with 73 units, followed by Shakopee with 38 units. Cottage Grove came fourth highest with 33 units. Rogers rounded out the top five with 26 units.
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