Metro homebuilding activity in May was mixed, as broader macroeconomic forces continued to weigh on overall homebuying activity. Homebuilders pulled permits for 519 single-family homes in May, a reduction of 12% compared to the same time last year.
Multifamily activity, however, saw strong activity in May. Builders reported 231 multifamily units under construction—accounting for over 30% of all construction activity for the month.
“While May was a slower month for permits, we’re still seeing strong interest from buyers who are ready to move when the timing is right,” said John Kraemer, board chair of Housing First Minnesota. “Builders remain optimistic about the market ahead, especially as buyers adjust to today’s conditions and look for opportunities to re-enter the market.”
There were 528 permits issued for a total of 750 housing units during the four comparable weeks in May, according to the Keystone Report.
“Minnesota’s housing market continues to face a long-term supply challenge that won’t be solved overnight,” said James Vagle, CEO of Housing First Minnesota. “Unfortunately, this year’s legislative session ended without meaningful housing reforms that could have brought back starter homes and unlocked homeownership opportunities. Without meaningful legislative action, affordability challenges will continue to keep homeownership out of reach for too many Minnesotans.”
For the month in permits, Rosemount took the top spot with 61 permits. Cottage Grove came in second with 38 permits. Shakopee and Woodbury were the next highest with 31 permits each. Lakeville ranked fourth with 26 permits, and St. Michael rounded out the top five with 25 permits.
For the month in units, Plymouth came in on top with 176 permitted units. Rosemount came next with 61 units, followed by Hudson, Wisconsin, with 41 units. Cottage Grove came fourth-highest with 38 units. Shakopee and Woodbury rounded out the top five with 31 units each.
Download the full data chart here.