Twin Cities homebuilders had another strong month in January with total permits for new housing hitting levels not seen since 2006. Single-family construction in the area hit double digit gains over January of last year with 541 permitted units marking a 32% increase over 2020. Twin Cities multifamily construction had one of its best months compared to the past 12 months with permits pulled for 1,213 units.
“Our housing market is drastically undersupplied. That coupled with the low mortgage rates and many still working from home has the market moving at an incredible pace.” said Todd Polifka, 2021 president of Housing First Minnesota.
According to data compiled by the Keystone Report for Housing First Minnesota, there were 572 total permits issued for a total of 1,754 units during four comparable weeks in the month of January.
“Recent reports show less than 1 month of inventory for sale in our marketplace. That unsustainably low inventory is driving up prices rapidly, adding to our affordability challenges.” said David Siegel, executive director of Housing First Minnesota. “We need to build more homes, with a particular focus on starter homes. Our state’s policy makers need to understand that we will not make a dent in the homeownership gap between whites and communities of color until we address the regulatory barriers to building affordable homes in our region.”
For the month, Lakeville took the top spot with 66 permits issued. Woodbury came in next with 39 permits, followed by Hugo with 30 permits. Cottage Grove, Plymouth and Blaine rounded out the top five all with 24 permitted units.
