Despite a nearly 50 percent drop in planned units from November 2012 to November 2013, overall, residential construction in the region remains quite stable. The reduction can be attributed to fewer multi-family units permitted, as single-family homes were up by four percent for the same period. So far this year, the region has issued permits for more units than any year since 2006 and is up by 25 percent over January through November 2012.
According to data compiled by the Keystone Report for the Builders Association of the Twin Cities (BATC), there were 419 permits issued for a total of 646 units during four comparable weeks in the month of November, 2013. Year-to-date, regional cities issued 4,941 permits for a total of 9,292 units.
“Historically, as the weather cools down, so do home buyers,” said Pamela Belz, Builders Association of the Twin Cities 2013 president and developer with Senior Housing Partners. “Most of our members had been preparing for a relatively flat fourth quarter 2013 and first quarter 2014.
“We’re optimistic that by second quarter 2014, and maybe sooner, the market will be on the rise,” Belz said.
Minneapolis once again led the top five cities in activity, permitting 212 units. Blaine came in second with 41 units, followed by Lakeville with 34 and Otsego with 33. Woodbury rounded out the top five with 26 units permitted.