After showing signs of a major slowdown in May and June, residential construction activity bounced back in July with double-digit gains in both permits issued and units planned. Single-family home permits jumped 13% in July compared to July 2019 with 580 permits pulled. Multifamily activity also saw a boost with 559 units permitted, up 38% from this month last year.
“While COVID-19 may have put many families’ plans to purchase homes on hold, the pent-up housing demand, lack of inventory in the market and low mortgage rates are prompting many to consider building new,” said Gary Kraemer, president of Housing First Minnesota.
According to data compiled by the Keystone Report for Housing First Minnesota, there were 604 permits issued for a total of 1,139 units during four comparable weeks in the month of July.
“We’re pleased to see homebuilding pick back up as the housing shortage in the Twin Cities is dire,” said David Siegel, executive director of Housing First Minnesota. “In order to make a dent in our region’s housing availability and affordability problem, we need a surge in new housing at an affordable price. Unfortunately, until we have major changes in our state’s regulatory environment and remove roadblocks, the second piece of that solution will not be feasible.”
For the month, Lakeville took the top spot with 60 permits issued. Cottage Grove and Rosemount, both with 31 permits issued, came in second. Blaine with 29 permits and Woodbury and Corcoran both with 27 permits rounded out the top five cities in July.
