Twin Cities Homebuilding Surges Ahead in December

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A surge in single-family construction in December brought the 2018 year-end permit numbers slightly higher than the 2017 year-end permit numbers. Single-family construction saw a 36 percent increase in the number of permits pulled over December 2017, and ended the year with less than 1 percent increase in total permits pulled in 2018 compared to 2017. Multifamily construction surged ahead in December with a 33 percent increase in permitted units, but for the year multifamily construction activity fell by 9 percent compared to 2017.

“Despite slower growth than expected in 2018 it was a very strong year for new home construction,” said Tom Wiener, president Housing First Minnesota. “There’s high demand for new housing in the Twin Cities and builders are innovating to meet homebuyers needs and budgets.”

According to data compiled by the Keystone Report for Housing First Minnesota, there were 523 permits issued for a total of 1,363 units during four comparable weeks in the month of December. For the year, there were 6,198 permits issued for a total of 12,749 units.

“Rising construction and regulatory costs combined with increasing mortgage rates is only adding to the housing affordability problem in the Twin Cities,” said David Siegel, executive director of Housing First Minnesota. “We need to address this issue so we can bring down the cost of housing for Minnesota families.”

For the year, Lakeville took the top spot with 506 permits issued. Plymouth came in next with 338 permits, followed by Woodbury with 320 permits. Rounding out the top five are Otsego with 272 permits and Lake Elmo with 265 permits issued.

Housing First Minnesota is the leading voice of home builders and remodelers and all who are dedicated to building safe, durable homes at a price Minnesotans can afford. Formerly known as the Builders Association of the Twin Cities, Housing First Minnesota represents more than 1,100 builders, remodelers, developers and industry suppliers throughout the state.

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