Permits for new single-family homes fell by 50% in February
Homebuilding activity remained lackluster in February as mortgage rates continue to hold back the housing market. Twin Cities builders pulled permits for 217 single-family homes in February, a 50% drop from this time last year. Multifamily construction in the Twin Cities pickled up the slack with permits pulled for a 939 units, pushing multifamily construction to 80% of all homebuilding activity in the metro for the year.
“Homebuilders are innovators and are working to meet the market, but that is challenging with our state’s roadblocks to building new homes and high interest rates impacting affordability,” said John Quinlivan, 2023 board chair of Housing First Minnesota.
All together, there were 227 permits issued for a total of 1,156 units during four comparable weeks in the month of February, according to the Keystone Report.
“We must address our housing affordability issues in the region or our market will continue to be in short supply of the most desired housing, entry level single-family homes,” said James Vagle, chief executive of Housing First Minnesota. “Consumer research show the vast majority of the population still wants that single-family home, if we do not build more of them, homeownership will become out of reach for future generations of Minnesotans.”
For the month in permits, Lakeville took the top spot with 36 permits issued. Maple Grove came in next with 29 permits. Woodbury with 25 permits, Victoria with 13 permits and Rosemount with 11 permits rounded out the top five.
For the month in units, Minneapolis came in on top with 626 permitted units. White Bear Lake came in next with 244 units. Followed by Lakeville with 101 units. Maple Grove with 29 units and Woodbury with 25 units rounded out the top five.
