Multifamily construction roared back into action in March. While single-family construction lagged last March’s permit numbers, it still recorded the second-best March in over 15 years. Permits for new single-family homes in the Twin Cities dropped by 8% in March 2022 with 574 permitted units. Multifamily construction, including townhomes, saw a 166% increase in the number of permitted units compared to last March with permits pulled for 860 units in 2022.
“We’re not surprised to see single-family permits and construction fall behind last year’s breakneck pace,” said James Julkowski, 2022 president of Housing First Minnesota. “As builders continue to face a challenging supply chain, labor market, and regulatory environment, we could see this trend continue into 2022.”
According to data compiled by the Keystone Report for Housing First Minnesota, there were 599 permits issued for a total of 1,434 units during four comparable weeks in the month of March.
“Homebuilders continue to report strong demand for new homes in the Twin Cities, many even reporting an increase in homebuyer traffic during this spring’s Parade of Homes,” said David Siegel, executive director of Housing First Minnesota. “We expect the homebuyer demand to remain, but grow more concerned about affordability as home prices have already been pushed much higher by the events of the last two years, and now rising interest rates may also price out buyers.”
For the month in permits, Lakeville took the top spot with 67 permits issued. Blaine came in next with 57 permits, followed by Otsego with 51 permits. Cottage Grove with 35 permits and Woodbury with 34 permits issued rounded out the top five.
