Homebuilding continues to lag in the Twin Cities even as the metro faces a stark shortage of homes. Twin Cities builders pulled permits for 386 single-family homes in April, a 38% drop from this time last year. Multifamily construction continued its downward trend with permits pulled for 240 units, an 83% drop in multifamily units compared to April 2022.
“Homebuilders saw a renewed interest in new homes during this spring’s Parade of Homes, but market conditions continue to hold back homebuyers,” said John Quinlivan, 2023 board chair of Housing First Minnesota. “While the existing market remains drastically undersupplied there are opportunities out there for homebuyers in new construction.”
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.
“We need homes of all types and all price points in the Twin Cities,” said James Vagle, CEO of Housing First Minnesota. “A slowdown in any type of new home construction should be of great concern to all our leaders, as our housing shortage continues to impact our community.”
For the month in permits, Woodbury took the top spot with 48 permits issued. Cottage Grove came in next with 34 permits. Rosemount with 25 permits, Victoria with 22 permits, and Blaine, Lakeville, and Rogers all with 18 permits rounded out the top five.
For the month in units, Plymouth came in on top with 186 permitted units. Woodbury came in next with 48 units, followed by Minneapolis with 41 units. Cottage Grove with 39 units and Rosemount with 25 units rounded out the top five.