Roseville, Minn – Twin Cities homebuilders maintained positive momentum in May despite stubborn interest rates. Homebuilders in the metro area pulled 665 permits for single-family homes throughout the month—a 36% increase over May 2023.
However, multifamily construction activity continued to see declines. Builders pulled permits for just 45 multifamily units during May. This is a 91% decrease in activity year-over-year.
“Even with little change on the interest rate front, we saw a strong boost in permits for single-family homebuilding,” said Art Pratt, board chair of Housing First Minnesota. “This uptick illustrates that demand for new homes is still going strong and the industry is ready to meet the needs of future homeowners.”
There were 667 permits issued for a total of 710 units during four comparable weeks in May, according to the Keystone Report.
“Homebuilders had a strong month, but Minnesota is in desperate need of housing units at all price points,” said James Vagle, CEO of Housing First Minnesota. “To ensure the next generation can achieve the dream of homeownership, both the legislature and local governments must act to modernize zoning and legalize housing options for all Minnesotans.”
For the month in permits, Rogers took the top spot with 61 permits issued. Lakeville came next with 49 permits. Corcoran, Cottage Grove, and Woodbury tied for third highest with 42 each. Shakopee was fourth with 38 permits and Maple Grove rounded out the top five with 37.
For the month in units, Rogers came in on top with 61 permitted units. Lakeville came next with 49 units, followed by Minneapolis with 44 units. Corcoran, Cottage Grove, and Woodbury came in fourth with 42 units each. St. Michael rounded out the top five with 41 permitted units.
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