Twin Cities single-family homebuilding held onto its positive trend as 2024 ended. Metro homebuilders pulled 471 permits for single-family homes during the month of December – a 17% increase over the same time last year.
Multifamily construction saw an increase in activity from the previous month. Builders pulled permits for 490 multifamily units in December. However, year-to-date, multifamily units were down nearly 55% compared to 2023.
“The steady growth in single-family homebuilding is a positive sign for residential construction,” said Art Pratt, 2024 board chair of Housing First Minnesota. “While the housing market has faced challenges this year, the recent uptick in construction of all types of housing shows there’s still momentum in the market as we head into 2025.”
There were 484 permits issued for a total of 961 housing units during the four comparable weeks in December, according to the Keystone Report.
For the year there were 6,387 permits pulled for 8,611 housing units in the Twin Cities.
“Our state is facing a critical housing shortage, and it’s clear that we need to accelerate residential construction to meet the growing demand,” said James Vagle, CEO of Housing First Minnesota. “From single-family homes to multifamily developments, every type of housing is essential to ensure our communities have the homes they need to thrive. Builders are ready to step up, but it’s going to take collaboration with policymakers to reduce barriers and keep construction moving forward.”
For the month in permits, Lakeville took the top spot with 42 permits issued. Maple Grove came in second with 38 permits. Blaine was third highest with 32. Minnetrista was fourth with 23 permits. Corcoran rounded out the top five with 22 permits.
For the month in units, Minnetonka came in on top with 393 permitted units. Wayzata came next with 70 units, followed by Lakeville with 42 units. Maple Grove came in fourth with 38 units. Shakopee rounded out the top five with 35 permitted units.