Homebuilders in the Twin Cities metro continued to see a scale back in construction activity in September. For the month, homebuilders pulled 410 permits for new single-family homes, a 27% drop from last September. Multifamily construction picked up in September, with permits pulled for 1,221 units an increase of 6% from this time last year.
“The traffic on the Fall Parade of Homes has been strong, a sign that there are many homebuyers hoping to make the move to a brand-new home,” said James Julkowski, the 2022 board chair of Housing First Minnesota. “Unfortunately, rising interest rates have drastically impacted what buyers can afford and many have been forced to put their homebuying dreams on hold.”
According to data compiled by the Keystone Report for Housing First Minnesota, there were 438 permits issued for a total of 1,631 units during four comparable weeks in the month of September.
“There are opportunities in this changing market for a segment of buyers who may have equity and cash, but first-time homebuyers and even many move-up buyers are feeling the impacts of higher interest rates and high home prices,” said James Vagle, CEO of Housing First Minnesota. “Now more than ever we need to lift the roadblocks that limit the construction of new starter homes here in Minnesota”
For the month in permits, Cottage Grove took the top spot with 31 permits issued. Lakeville came in next with 29 permits, followed by Carver and Woodbury both with 26 permits. Rosemount with 17 permits rounded out the top five.
For the month in units, Minnetonka took the top spot with 285 permitted units. Eden Prairie came in next with 241 permitted units, followed by St. Louis Park with 234 units. Minneapolis with 165 units and Edina with 124 permitted units rounded out the top five.