Roseville, Minn – Homebuilding in the Twin Cities maintained its steady pace in August despite stubborn, high mortgage rates continuing to impact activity. Metro homebuilders pulled 586 permits for single-family homes during the month of August. This is a 3% increase over last year and a 30% increase from July.
However, activity in the multifamily sector continues to be sluggish. Builders pulled permits for just 92 multifamily units in August, a 75% drop in activity from August 2023.
“Many potential buyers are waiting for the rate environment to be right before they jump into the market,” said Art Pratt, board chair of Housing First Minnesota. “If the Federal Reserve cuts rates as anticipated this fall, the impact on all sectors of the housing market could be significant.”
According to the Keystone Report, 601 permits were issued for a total of 678 housing units during the four comparable weeks in August.
“The challenge facing our market is tight supply, especially at the lower price points,” said James Vagle, CEO of Housing First Minnesota. “There simply aren’t enough homes being built to meet demand. Even with lower rates, affordability will continue to be an issue for many potential homeowners.”
For the month in permits, Maple Grove took the top spot with 54 permits issued. Woodbury came in next with 50 permits. Ramsey was third highest with 46. Cottage Grove was fourth with 43 permits, and Lakeville rounded out the top five with 42.
For the month in units, Maple Grove came in on top with 59 permitted units. Woodbury came next with 50 units, followed by Shakopee with 49 units. Ramsey came in fourth with 46 units. Cottage rounded out the top five with 43 permitted units.
Download the August Permit Building Activity chart >>
