The pace of construction of single-family homes in the Twin Cities continues to slow, especially when compared to last year’s second-half surge. Area homebuilders pulled 594 permits for new single-family homes in October, a 5% drop from October of last year. Multifamily construction had another strong month with 1,178 permitted units, a 90% increase from October of last year.
“Homebuilders are seeing a slight slowdown in homebuyer activity, especially compared to what we saw last fall,” said Todd Polifka, 2021 president of Housing First Minnesota. “As prices have gone up due to supply chain issues, permit delays and overall regulatory costs, more and more potential homebuyers are forced to sit on the sidelines.”
According to data compiled by the Keystone Report for Housing First Minnesota, there were 646 permits issued for a total of 1,772 units during four comparable weeks in the month of October.
“The shortage of housing in the Twin Cities remains dire, and unfortunately in the current market conditions it is difficult for builders to supply the market with homes at the most needed prices,” said David Siegel, executive director of Housing First Minnesota. “Until we can build more homes at the entry-level price points we will continue to see more and more Minnesotans left of homeownership and the many benefits that come with it.”
For the month, Lakeville took the top spot with 68 permits issued. Cottage Grove came in next with 41 permits. Blaine with 39 permits, St. Michael with 35 permits and Otsego with 32 permits rounded out the top five.
