Twin Cities Residential Construction Continues to Grow (August, 2012)

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August permit statistics show another strong month of growth for new construction. Units permitted in August, 2012, more than doubled the rate in August, 2011; and year-to-date, units were up almost 80 percent over this time last year. Large multi-family projects added to the month’s totals, with Minneapolis permitting two buildings of 204 and 203 units respectively. But, single-family activity also continued strong, showing a 50 percent increase in August 2012, over August 2011.

According to statistics compiled by the Keystone Report for the Builders Association of the Twin Cities (BATC), there were 385 permits for a total of 901 units during four weeks in the month of August, 2012. Year-to-date, there were 2,665 permits issued for a total of 4,903 units.

“The Twin Cities continues to post solid gains in residential construction,” said Builders Association of the Twin Cities 2012 President and owner of Lee Lyn Construction, Curt Christensen. “And, we’re seeing economic indicators all pointing in the right direction.

“Unemployment, rental vacancies, home and lot inventories, as well as mortgage rates are all trending down, while sales prices, listings, and even builder stocks are up,” Christensen said.

Minneapolis led the metro area in building activity for the month with 413 units permitted. Blaine followed with 77 units. Burnsville joined the top five with 68 (including one 66 unit building), followed by Woodbury with 38 units and Plymouth with 28 units. Woodbury and Plymouth have held fourth and fifth ranking since June.

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