Homebuilding in the Twin Cities resulted in another mixed bag of movement in August, with multi-family posting significant gains while single-family saw a slight dip compared to last year. Overall, new construction permits decreased by 6% compared to last year.
“Although permits are slightly below last year’s pace, homebuilding activity has remained consistent this summer,” said Art Pratt, board chair of Housing First Minnesota. “We anticipate that any dip in lower mortgage rates will help unlock demand and bring more buyers into the market.”
Metro builders pulled 552 permits for single-family homes in August – a 4% decrease in year-over-year activity. Multifamily construction, however, reported its best month in six months with 350 units permitted throughout the month.
“Our market continues to face a shortage of homes, especially at more affordable price points,” said James Vagle, CEO of Housing First Minnesota. “If mortgage rates ease, that may help ease affordability concerns, but supply remains a top issue.”
For the month in permits, Rosemount took the top spot with 54 permits. Rogers came in second with 46 permits. Maple Grove was the next highest with 45. Otsego was next with 35 permits. Lakeville rounded out the top five with 33 permits.
For the month in units, Plymouth came in on top with 210 permitted units. Woodbury came next with 143 units, followed by Rosemount with 54 units. Rogers was the fourth highest with 46 units. Maple Grove rounded out the top five with 45 units.
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