Permits for new single-family homes continued to climb in July, despite the numerous challenges in the homebuilding process right now. Twin Cities homebuilders pulled 640 permits for new single-family homes in July, a 10% increase over last July. After several months of lackluster numbers, multifamily construction had one of its stronger months of the year with permits pulled for 667 units.
“The demand for new homes in the Twin Cities continues to surge, despite the numerous headwinds that are delaying the entire homebuilding process,” said Todd Polifka, 2021 president of Housing First Minnesota. “With the supply chain disruptions, labor shortage and development delays, we simply cannot build homes fast enough for the number of homebuyers that are out there.”
According to data compiled by the Keystone Report for Housing First Minnesota, there were 679 permits issued for a total of 1,307 units during four comparable weeks in the month of July.
“The home price increases stemming from the lack of existing homes available combined with sky-high material prices on the new construction side are very concerning,” said David Siegel, executive director of Housing First Minnesota. “Lumber prices have come down, but it will be a while before homebuilders are able to purchase lumber at lower prices. That still leaves us with higher labor costs, higher material costs, our already high development and regulatory costs, and more and more homebuyers priced out of homeownership in the Twin Cities.”
For the month, Lakeville took the top spot with 73 permits issued. Cottage Grove came in next with 68 permits, followed by Woodbury with 55 permits. Otsego with 36 permits and Blaine with 27 permits rounded out the top five.
