Multifamily construction continues to boost residential homebuilding activity, while single-family construction activity continues to fall flat. Several permits pulled for large projects in Minneapolis and Minnetonka pushed the number of multifamily units up to 1,306 for the month of May, a significant increase over this month last year. With 637 permitted units in May, single-family construction is down 3% compared to May of last year. That’s four consecutive months of downward trending permit numbers in single-family construction.
“The recent weather has certainly not helped our spring selling season, but we also believe our region’s affordability problem is having an impact,” said John Rask, president of Housing First Minnesota. “The housing market is extremely under supplied at the lower price points and we cannot build at a price to relieve that pressure, which is keeping many homebuyers on the sidelines.”
According to data compiled by the Keystone Report for Housing First Minnesota, there were 670 permits issued for a total of 1,943 units during four comparable weeks in the month of May.
“We are hopeful that with the recent passing of the Legislative Commission on Housing Affordability we will be able tackle some of the issues that are driving up the cost of housing in Minnesota,” said David Siegel, executive director of Housing First Minnesota. “With approval from Gov. Walz the multiyear commission will analyze issues relating to housing affordability and ultimately recommend housing policies that balance safety, durability and affordability.”
For the month, Lakeville took the top spot with 63 permits issued. Woodbury came in next with 57 permits, followed by Blaine with 38 permits and Cottage Grove with 38 permits issued. Rounding out the top five was Plymouth with 34 permits issued.
