With one month left in the year, it’s looking as if 2018 will be a flat year for Twin Cities homebuilding activity. Both single-family and large project multifamily permits were down for the month of November compared to 2017. Townhome construction continues to be the bright spot this year, with a 28 percent increase in the number of permitted units over year-to-date last year.
“The rise in townhome production is a direct result of builders seeking to provide a more affordable product, reaching the highest array of buyers,” said Tom Wiener, president of Housing First Minnesota
According to data compiled by the Keystone Report for Housing First Minnesota, there were 539 permits issued for a total of 1,333 units during four comparable weeks in the month of November.
“Builders are feeling a bit of a slowdown in buyer activity right now,” said Wiener. “While this year still ranks as the second highest number of permits we’ve seen since 2006, the market requires more growth in order to balance out the housing inventory shortage in the Twin Cities.”
“High prices and rising mortgage rates are keeping many homebuyers on the sidelines,” said David Siegel, executive director of Housing First Minnesota. “Housing affordability needs to be addressed both at the capitol and at the local government level.”
For the month, Woodbury took the top spot with 37 permits issued. Cottage Grove came in next with 36 permits, followed by Plymouth with 31 permits. Rounding out the top five are Lakeville with 28 permits and Elk River with 22 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. Formerly known as the Builders Association of the Twin Cities, Housing First Minnesota represents more than 1,100 builders, remodelers, developers and industry suppliers throughout the state.
