Metro homebuilding continued to feel the impacts of economic uncertainty in June. Homebuilders pulled permits for 511 single-family homes in June, down 6% from the same time last year.
Multifamily activity, however, saw another robust month of activity in June. Builders reported 394 multifamily units under construction—accounting for over 40% of all construction activity for the month and the highest rate of activity since December 2024.
“Homebuyers in today’s market are taking more time to make decisions,” said John Kraemer, board chair of Housing First Minnesota. “While single-family activity was softer in June, builders are continuing to adapt to these changing conditions. We’re still seeing steady interest from buyers who are ready to move when the timing is right, and builders remain focused on meeting that demand as the market evolves.”
There were 521 permits issued for a total of 905 housing units during the four comparable weeks in June, according to the Keystone Report.
“While monthly housing activity will continue to fluctuate, Minnesota’s long-term challenge remains the same: We aren’t building enough homes,” said James Vagle, CEO of Housing First Minnesota. “Limited housing supply, elevated construction costs, and affordability challenges continue to put homeownership out of reach for too many Minnesotans. Creating more housing opportunities will require meaningful policies that support new construction and increase housing supply at every price point.”
For the month in permits, Otsego took the top spot with 54 permits. Lakeville came in second with 41 permits. Rosemount and Shakopee were the next highest with 38 permits each. Dayton ranked fourth with 33 permits, and St. Michael rounded out the top five with 30 permits.
For the month in units, Apply Valley came in on top with 149 permitted units. Burnsville came next with 120 units, followed by Lakeville with 115 units. Otsego came fourth highest with 54 units. Minnetonka rounded out the top five with 46 units.