The number of permits pulled in the Twin Cities for new single-family homes in August fell as measured against the same period last year for the first time in 2021. The slowdown reflects the growing number of market and regulatory challenges that continue to hinder builders’ ability to bring new homes to the region. Twin Cities homebuilders pulled 576 permits for new single-family homes in August, a 4% drop from last August. Multifamily construction also had a lackluster month with builders pulling permits for 425 units in August, an 18% drop from this month last year.
“With the lack of existing homes for sale, the labor shortage, supply chain problems and the state’s existing regulatory roadblocks, constructing new homes in our market has never been more difficult,” said Todd Polifka, 2021 president of Housing First Minnesota. “The demand for new homes remains, but our ability to build those homes at a price Twin Cities families can afford grows more challenging by the day.”
According to data compiled by the Keystone Report for Housing First Minnesota, 608 permits were issued for a total of 1,001 units during four comparable weeks in the month of August.
“After months of surging demand and permits, we are now seeing the impact of the headwinds on housing production,” said David Siegel, executive director of Housing First Minnesota. “We must remove barriers to homebuilding as our housing market remains vastly undersupplied leaving many homebuyers on the sidelines.”
For the month, Woodbury took the top spot with 59 permits issued. Lakeville came in next with 46 permits, followed by Otsego with 41 permits. Cottage Grove with 36 permits and Carver and Blaine both with 28 permits rounded out the top five.
