Twin Cities homebuilding saw a drop in activity in September despite lowering mortgage rates. Metro homebuilders pulled 524 permits for single-family homes during the month of September – a 20% decrease over last year.
Multifamily construction also experienced year-over-year declines. Builders pulled permits for just 181 multifamily units in September which is a 78% drop in activity from September 2023.
“Strong traffic on the Fall Parade of Homes confirms demand is still out there,” said Art Pratt, board chair of Housing First Minnesota. “With mortgage rates lowering, we should expect to see more activity, as previously sidelined buyers get back into the market.”
There were 533 permits issued for a total of 705 housing units during the four comparable weeks in September, according to the Keystone Report.
“The Fed’s recent decision to cut rates is a step in the right direction for homebuyers. However, the supply challenge cannot be ignored,” said Jame Vagle, CEO of Housing First Minnesota. “We urgently need new housing units of all kinds. Without a boost of supply in our market, potential homebuyers will be priced out of their dream of homeownership.”
For the month in permits, Rogers took the top spot with 47 permits issued. Maple Grove came in next with 42 permits. Woodbury was third highest with 39. St. Michael was fourth with 36 permits and Shakopee rounded out the top five with 35.
For the month in units, Lakeville came in on top with 155 permitted units. Carver came next with 66 units, followed by Rogers with 47 units. Maple Grove came in fourth with 42 units. Woodbury rounded out the top five with 39 permitted units.
Download the September chart here.