Permits for New Housing Fall by 44% in March
No relief in sight for the Twin Cities housing shortage as homebuilding activity continues to slow in March. Twin Cities builders pulled permits for 324 single-family homes in March, a 43% drop from this time last year. Multifamily construction saw an even steeper drop with permits pulled for 82 units, a 90% drop in multifamily units compared to March of 2022.
“Interest rates continue to impact the housing market, but we are seeing continued interest from homebuyers,” said John Quinlivan, 2023 board chair of Housing First Minnesota. “Area homebuilders have reported increased traffic during this spring’s Parade of Homes, which signals that an uptick in homebuilding activity may be ahead in 2023.”
All together, there were 335 permits issued for a total of 406 units during four comparable weeks in the month of March, according to the Keystone Report.
“At a time when we have a shortage of all types of housing in our region, it is very concerning to see a further slowdown in homebuilding activity,” said James Vagle, CEO of Housing First Minnesota. “Local leaders and lawmakers must take action to remove the barriers to building housing in our region or our housing shortage will worsen.”
For the month in permits, Woodbury took the top spot with 46 permits issued. Lakeville came in next with 43 permits. Blaine with 35 permits, Lake Elmo with 23 permits and Plymouth with 17 permits rounded out the top five.
For the month in units, Woodbury and Lakeville came in on top with 46 permitted units. Blaine came in next with 42 units, followed by Champlin with 40 units. Lake Elmo with 30 units rounded out the top five.
Download the March Data Chart >>
