Residential Constructions Steams Ahead in October

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Residential construction saw the highest number of permitted units pulled in October since before 2003. For the month, 555 single-family permits were pulled for a nearly 20% increase over October of last year. Multifamily construction, especially in Minneapolis, had another strong month with 36 permits pulled for a total of 1,182 units.

“The low inventory in the housing market is definitely encouraging more residential construction,” said John Rask, president of Housing First Minnesota. “With the slow start to 2019 in single-family construction, it’s a strong sign to see demand really pick up at the end of the year.”

According to data compiled by the Keystone Report for Housing First Minnesota, there were 591 permits issued for a total of 1,737 units during four comparable weeks in the month of October.

“While an increase in all housing inventory helps balance our interconnected housing market, we are still not meeting the demands of the most undersupplied side of the market, affordable single-family housing,” said David Siegel, executive director of Housing First Minnesota. “In order to truly provide price relief in that section of the market we need to make substantial changes to how we regulate and prioritize new residential construction.”

For the month, Lakeville took the top spot with 48 permits issued. Woodbury came in next with 29 permits, followed by Blaine with 27 permits issued, Hugo with 24 permits issues and Rosemount with 23 permitted units.

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