This month, Twin Cities single-family construction had its best October since 2005. There were 712 permits pulled for single-family homes this month, an increase of 28% over October of last year. Multifamily construction continues to slow its pace in the Twin Cities, with permits pulled for 675 units, a drop of 43% from this month last year.
“The combination of more time spent at home and low interest rates has many deciding now is the time to buy a new home to fit their new lifestyle,” said Gary Kraemer, president of Housing First Minnesota. “We expect the drive for new homes to continue as the resale housing market simply does not have enough inventory to meet the demands from homebuyers.”
According to data compiled by the Keystone Report for Housing First Minnesota, there were 756 permits issued for a total of 1,387 units during four comparable weeks in the month of October.
“Our market has been under building for over a decade. This increase in demand during a global pandemic is proof of that,” said David Siegel, executive director of Housing First Minnesota. “Supply chain roadblocks due to COVID-19 have added new costs to our already expensive housing market. The need to remove roadblocks so our builders can provide starter homes at lower price points has never been greater.”
For the month, Lakeville took the top spot with 104 permits issued. Otsego came in next with 64 permits issued. Rosemount with 41 permits, Woodbury with 32 permits and Cottage Grove with 30 permits rounded out the top five cities in October.
