Roseville, Minn – Twin Cities homebuilders saw a small decrease in activity in March, as mortgage rate pressures and economic uncertainty continue. Metro homebuilders pulled 380 permits for single-family homes throughout the month of March, marking a 6% decline in year-over-year activity.
Multifamily construction, however, saw a healthy increase in activity this month with permits being pulled for 257 units.
“Despite continued challenges from high mortgage rates, buyer interest in new homes remains steady,” said Tim Fohr, board chair of Housing First Minnesota. “The spring season is an important time in the housing market and builders are looking ahead with optimism and are prepared to meet market needs.”
There were 383 permits issued for a total of 637 housing units during the four comparable weeks in March, according to the Keystone Report.
“A recent poll found that two-thirds of respondents believe there are not enough homes for the average person to afford,” said James Vagle, CEO of Housing First Minnesota. “Minnesota’s housing supply crisis is real. The legislature has a pivotal opportunity to step up, take bold action, and bring back starter homes.”
For the month in permits, Lakeville took the top spot with 31 permits issued. Corcoran came in second with 27 permits. Lake Elmo was the third highest with 29. Woodbury and St. Michael were tied for fourth with 24 permits each. Ramsey and Lake Elmo rounded out the top five with 20 permits each.
For the month in units, Woodbury came in on top with 149 permitted units. Waconia came next with 105 units, followed by Mahtomedi with 41 units. Lakeville came in fourth with 31 units. Corcoran rounded out the top five with 27 permitted units.
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