Twin Cities homebuilding experienced a second consecutive month of declines in December, with dips across all areas of the market. Homebuilders pulled permits for 369 single-family homes in December – a 15% drop in activity from last year.
Additionally, builders reported just 13 multifamily units under construction, a 63% decline from December 2024. Multifamily activity accounted for less than a quarter of all construction activity for the month.
“December’s slowdown in homebuilding activity aligns with typical seasonal trends in Minnesota, even as some buyers remain cautious,” said Art Pratt, 2025 board chair of Housing First Minnesota. “Even so, interest in homeownership has remained steadfast, and the year ahead may provide the clarity buyers need to re-engage.”
A total of 375 permits were issued for 382 housing units during the four comparable weeks in December, according to the Keystone Report.
For the year, overall new construction was down 2% with 6,207 permits reported for 8,052 units. Single-family construction was down 2% compared to 2024.
“This year, economic conditions affected homebuyers, but the fundamental need for housing persists,” said James Vagle, CEO of Housing First Minnesota. “Life milestones continue to drive demand, and in an already undersupplied market, adding housing capacity is essential.’
For the month in permits, Lakeville took the top spot with 51 permits. Rosemount came in second with 39 permits. Shakopee was the next highest with 25. Corcoran was next with 20 permits. Cottage Grove rounded out the top five with 19 permits.
For the month in units, Lakeville came in on top with 51 permitted units. Rosemount came next with 39 units, followed by Shakopee with 27 units. Corcoran came fourth highest with 20 units. Cottage Grove and Minneapolis rounded out the top five with 19 units each.
Download the full data chart here.