Twin Cities Homebuilders Increase Townhome Production

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Roseville, Minn. (Oct. 26, 2017) – Multi-family construction spiked upwards from this time last year, with 670 permitted units, up 69 percent from October of last year. So far, this year townhome units have increased by 65 percent, but still only make up 6 percent of new residential construction. The number of single-family permits pulled in October dipped slightly .66 percent to 447 units compared to 450 in 2016.

According to data compiled by the Keystone Report for Housing First Minnesota, there were 474 permits issued for a total of 1,117 units during four comparable weeks in the month of October.

“We’re encouraged to see a continued increase in townhome construction, an important piece of the entry-level housing market,” said Bob Michels, president of Housing First Minnesota. “Legislation passed earlier this year that removed constraints on townhome development is already helping this area of the market continue to recover.”

“The labor shortage continues to impact construction, with many of our homebuilders reporting it as the most pressing issue facing the industry,” said David Siegel, executive director of Housing First Minnesota. “Following our strong Fall Parade of Homes we expect to see homebuilding close out 2017 as its strongest year in more than a decade.”

For October, Lakeville took the top spot with 40 permits issued. Blaine came in next with 37 permits, followed by Woodbury with 21 permits, rounding out the top five are Otsego and Plymouth both with 20 permits issued.

Housing First Minnesota is the leading voice of home builders and remodelers and all who are dedicated to building safe, durable homes at a price Minnesotans can afford. As a program of the Builders Association of the Twin Cities, Housing First Minnesota represents more than 1,200 builders, remodelers, developers and industry suppliers throughout the state.