Twin Cities homebuilding remains strong despite interest rate woes

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Homebuilding in the Twin Cities stayed on a positive streak for the month of April with 541 single-family home permits pulled – a 40% jump over the same time last year.

However, multifamily construction activity continued to see declines. Builders pulled permits for only 115 multifamily units during the month of April. This is a 55% decrease in activity year-over-year.

“Our market continues to be impacted by high interest rates,” said Art Pratt, 2024 board chair of Housing First Minnesota. “However, with our region severely short of homes, there’s a strong resilience within the industry. Builders are not just problem solvers; they’re innovators, constantly seeking new ways to meet the ever-evolving demands of the market.”

There were 553 permits issued for a total of 656 units during four comparable weeks in April, according to the Keystone Report.

“The legislature’s lack of action to address the issues of housing supply this session is cause for concern,” said James Vagle, CEO of Housing First Minnesota. “We cannot afford to wait any longer to address these pressing issues. It is time for Minnesota to act and to allow starter homes to be built again.”

For the month in permits, Rogers took the top spot with 54 permits issued. Rosemount and Lakeville came in next with 43 permits each. Woodbury was third highest with 39. Cottage Grove was fourth with 38 permits and Blaine rounded out the top five with 35.

For the month in units, Plymouth came in on top with 75 permitted units. Rosemount came next with 67 units, followed by Rogers with 54 units. Lakeville came in fourth with 43 units. Woodbury rounded out the top five with 42 permitted units.

Download the full April release here.