Twin Cities Residential Construction Continues to Show Strength in New Year

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Roseville, Minn – Homebuilders in the Twin Cities started 2025 on a high note. Metro homebuilders pulled 461 permits for single-family homes during January – a 28% increase over the same time last year.

Multifamily construction remained largely unchanged year-over-year with 213 units for the month. However, activity was down month-over-month with a 57% decrease compared to December.

“The steady growth in homebuilding across the Twin Cities shows just how much a diverse housing stock is needed and wanted, especially for first-time buyers and those looking to downsize,” said Tim Fohr, board chair of Housing First Minnesota. “Minnesota homebuilders are eager to keep building homes that fit the needs of Minnesotans and their families.”

There were 465 permits issued for a total of 674 housing units during the four comparable weeks in January, according to the Keystone Report.

“Our housing market is in dire need of housing units of all types at a price Minnesotans can afford,” said James Vagle, CEO of Housing First Minnesota. “Metro homebuilders are prepared to help meet this demand, but that’s only part of the solution. The legislature must step up and address restrictive land use and zoning policies during the 2025 session.”

For the month in permits, Rosemount took the top spot with 59 permits issued. Dayton came in second with 37 permits. Shakopee was third highest with 36. Lakeville and Ramsey were fourth with 35 permits each. St. Michael rounded out the top five with 23 permits.

For the month in units, Minnetonka came in on top with 123 permitted units. Shakopee came next with 77 units, followed by Rosemount with 59 units. Minneapolis came in fourth with 57 units. Dayton rounded out the top five with 37 permitted units.

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