Twin Cities homebuilding saw a jump in activity in the first month of the year, with upticks in construction in all areas of the market. Homebuilders pulled permits for 453 single-family homes in January – a 9% rise in activity from last year.
Additionally, builders reported 313 multifamily units under construction, a 47% jump from January 2025. Multifamily activity accounted for 41% of all construction activity in January.
“The increase in new construction activity in January reflects strength on the demand side of the market,” said John Kraemer, 2026 board chair of Housing First Minnesota. “Even amid broader economic headwinds, buyers are remaining active and engaged.”
There were 459 permits issued for a total of 766 housing units during the four comparable weeks in January, according to the Keystone Report.
“January marked the strongest start for new construction since 2022,” said James Vagle, CEO of Housing First Minnesota. “An increase in activity is encouraging, but Minnesota remains significantly undersupplied—particularly at lower price points. Maintaining this momentum will be critical as we move into the spring housing market.”
For the month in permits, Lakeville took the top spot with 54 permits. Rosemount came in second with 39 permits. Otsego was next highest with 30. Lino Lakes was next with 28 permits. St. Michael rounded out the top five with 21 permits.
For the month in units, Edina came in on top with 292 permitted units. Lakeville came next with 75 units, followed by Rosemount with 39 units. Otsego came fourth highest with 30 units. Lino Lakes rounded out the top five with 29 units.