Roseville, Minn – The demand for new single-family homes continues to push strong homebuilding activity. Homebuilders in the metro area pulled 542 permits for single-family homes throughout the month — a 15% increase over June 2023.
However, multifamily construction was nearly nonexistent in June. Builders pulled permits for just 24 multifamily units in June. This is an 88% decrease in year-over-year activity.
“As homebuyers adapt to current interest rates, more and more buyers are drawn to new construction where many builders are offering incentives,” said Art Pratt, board chair of Housing First Minnesota. “Builders are adapting to the current housing market as the demand for homeownership has not waivered, even as rates and home prices have made it challenging for many.”
There were 548 permits issued for a total of 566 units during four comparable weeks in June, according to the Keystone Report.
“The complete drop off of multifamily construction is concerning, as Minnesota needs housing of all types,” said James Vagle, CEO of Housing First Minnesota. “Now more than ever we need local governments and the Legislature to prioritize housing affordability and modernize zoning.”
For the month in permits, Maple Grove took the top spot with 41 permits issued. Farmington came next with 38 permits. Woodbury with 35 permits, Rogers with 30 permits and Cottage Grove with 29 permits rounded out the top five.
For the month in units, Maple Grove came in on top with 41 permitted units. Farmington came next with 38 units, followed by Rosemount with 26 units. Woodbury with 35 units and Rogers with 30 units rounded out the top five.
Download the full June 2024 Permits Release >>
