It was another slow month for Twin Cities homebuilders as permits for new single-family homes continue to fall. For the month, builders pulled 344 permits for new single-family homes, a 28% drop from last August. Multifamily construction slowed from the high pace of the previous months this year, but it was still up from last August. Builders pulled permits for 428 units, a slight 2% increase from August 2021.
“High interest rates and rising home prices continue to force many homebuyers to press pause on their plans to purchase a new home,” said James Julkowski, the 2022 board chair of Housing First Minnesota. “A bright spot, as the market comes down from the competitive high we saw for the past two years with the historically low inventory of homes for sale, is that many homebuyers will find opportunities in this market.”
According to data compiled by the Keystone Report for Housing First Minnesota, there were 364 permits issued for a total of 772 units during four comparable weeks in the month of August.
“We continue to grow concerned about how the current slowdown in homebuilding will impact our overall long-term market,” said James Vagle, CEO of Housing First Minnesota. “The demographics remain the same: we have a large population in their peak homebuying age and a shortage of homes in our region. It’s more important than ever that lawmakers and leaders look at innovative ways to bring starter homes back in Minnesota.”
For the month in permits, Lakeville took the top spot with 37 permits issued. Woodbury came in next with 32 permits, followed by Elk River with 29 permits. Plymouth with 19 permits and Blaine and Hugo both with 18 permits issued rounded out the top five.
For the month in units, Minneapolis took the top spot with 302 permitted units. Lakeville came in next with 94 permitted units, followed by Otsego with 43 units. Woodbury with 32 units and Elk River with 29 permitted units rounded out the top five.
Download the August Permit Data >>
