Single-family home construction activity in the Twin Cities saw another positive month in November as interest rates faltered slightly and activity in the existing market continues to slow. Metro builders pulled permits for 573 single-family homes during the month, a 47% increase from the same time last year.
Activity in the multifamily construction sector also saw an increase in activity with permits pulled for 407 units. This is a 34% increase in units compared to this same time last year.
“Conditions in the existing market are leaving motivated buyers frustrated,” said John Quinlivan, 2023 board chair of Housing First Minnesota. “As interest rates begin to descend, builders want to have homes ready for those buyers who have been waiting for their right time to buy.”
There were 586 permits issued for a total of 980 units during four comparable weeks in November, according to the Keystone Report.
“Despite strong and consistent buyer demand, various market dynamics have all but sidelined it,” said James Vagle, CEO of Housing First Minnesota. “Our housing market is in desperate need of supply. It’s time Minnesota modernizes our zoning laws to allow for starter homes to be built in order to foster homeownership opportunities for all Minnesotans.”
For the month in permits, Woodbury took the top spot with 69 permits issued. Lakeville came in next with 46 permits. Ramsey was third highest with 38 followed by Rosemount with 34 permits. Minnetrista and Blaine both issued 26 permits to round out the top five.
For the month in units, Minneapolis came in on top with 327 permitted units. Woodbury came in next with 69 units, followed by St. Louis Park with 60 units. Lakeville with 53 units and Rosemount with 42 units rounded out the top five.
Download the full report here.