Twin Cities Residential Construction During October 2014 Remained Lackluster

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While year-to-date residential permit statistics remain behind 2013, an 18 percent increase in planned units in October (over October 2013) helped reduce the year-to-date decline. Total year-to-date units permitted at the end of October are down 4.4 percent over the same time period in 2013, an improvement over year-to-date numbers at the end of September (down by eight percent).

According to data compiled by the Keystone Report for the Builders Association of the Twin Cities (BATC), there were 397 permits issued for a total of 1,210 units during four comparable weeks in the month of October, 2014.  Year-to-date, there were 4,153 permits issued for a total of 8,241 units.

“The home building industry remains concerned about the lack of activity since spring of 2014,” said Shawn Nelson, Builders Association of the Twin Cities 2014 president and president of New Spaces. “Interest in our Fall Parade of Homes remained relatively consistent with last Fall, but our builders reported that families just weren’t ready to sign contracts.”

“We’re very disappointed to see the Twin Cities lag other parts of the nation in home buying, and worried that 2015 code changes and resultant price increases will only exacerbate the problem,” Nelson said.

Multi-family construction pushed October numbers up as Savage took the top spot for permit activity with 292 units. Minneapolis ranked second with 279 units permitted, followed by Fridley with 102 units. Blaine with 90 and Lakeville with 35 units completed the top five.

See the full Data Chart below.