Homebuilding activity in the metro area was mixed for the month of July as single-family saw a healthy uptick while multifamily projects dropped significantly. Overall, homebuilding activity improved 13% over July of last year.
Metro builders pulled 503 permits for single-family homes in June – a 15% increase in year-over-year activity.
“We are still seeing steady interest from buyers,” said Art Pratt, board chair of Housing First Minnesota. “Even with economic headwinds — like stubborn interest rates and supply costs — families are looking for new options, and we are building to meet that need.”
Multifamily construction, however, reported just six permitted units during the month of July. This is the lowest level of activity in the multifamily sector since April 2024. Year-to-date, multifamily activity is only down 2% compared to the same time period last year.
“While an uptick in single-family home construction is encouraging, the near inactivity in the multifamily sector remains a concern,” stated James Vagle, CEO of Housing First Minnesota. “Our housing market operates as an ecosystem; we need to be building all types of homes to attain a balanced housing market that works for all Minnesotans.”
For the month in permits and units, Lakeville took the top spot with 44 permits. Ramsey came in second with 33 permits. Cottage Grove was next highest with 31. Maple Grove was next with 23 permits. Lake Elmo, Rosemount, and Rogers tied to round out the top five with 20 permits each.
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