Single-family permits fall by 13% year-over-year in May
Homebuilding is starting to show some signs of improvement as the demand for new homes in the Twin Cities remains strong. Twin Cities builders pulled permits for 487 single-family homes in May, a 13% decrease from this time last year. While still down from last year, the 13% drop in activity is a vast improvement from the 40% or more drop seen in all previous months of 2023. Multifamily construction, however, continued to see steep declines with permits pulled for 514 units, an 197% plunge in units compared to April 2022.
“Rising mortgage rates continue to be a hurdle for homebuyers. But strong demand remains for new homes throughout the metro as the existing market largely fails to provide options for buyers at all price points,” said John Quinlivan, 2023 board chair of Housing First Minnesota. “After a slow spring, homebuilders are ready to build the homes that the Twin Cities desperately needs.”
There were 498 permits issued for a total of 1,001 units during four comparable weeks in the month of May, according to the Keystone Report.
“Minnesotans want to own homes, but the current existing market is failing to meet them where they are,” said James Vagle, CEO of Housing First Minnesota. “Minnesota’s homebuilders are ready to fill that gap and provide safe and durable homes for our state.”
For the month in permits, Maple Grove took the top spot with 47 permits issued. Woodbury came in next with 41 permits. Lakeville with 35 permits, Blaine with 34 permits and Rogers with 24 permits rounded out the top five.
For the month in units, Maple Grove came in on top with 294 permitted units. Rosemount came in next with 230 units, followed by Lakeville with 48 units. Woodbury with 41 units and Blaine and Minneapolis each with 34 units rounded out the top five.