Permits for new single-family homes continue to surge as the Twin Cities housing market remains in short supply of homes for sale. Twin Cities homebuilders pulled 637 permits for new single-family homes in June, a 63% increase over June of 2020. Multifamily construction remains lackluster so far in 2021 making up less than 50% of new residential units for the fifth month in a row.
“We have not seen a housing market this unbalanced before; there are simply not enough existing homes in the Twin Cities to meet the needs of our region,” said Todd Polifka, 2021 president of Housing First Minnesota. “We expect this pace of homebuilding to continue as our housing market simply needs more homes.”
According to data compiled by the Keystone Report for Housing First Minnesota, there were 679 permits issued for a total of 972 units during four comparable weeks in the month of June.
“Homebuilders are still struggling to keep up with the demand from homebuyers,” said David Siegel, executive director of Housing First Minnesota. “The barriers to bring new lots and developments to the Twin Cities, as well as the ongoing labor shortage and supply chain issues, continue to put a strain on our shortage of single-family homes in the Twin Cities.”
For the month, Blaine took the top spot with 45 permits issued. Woodbury came in next with 44 permits, followed by Lakeville with 43 permits. Otsego with 42 permits and Cottage Grove with 39 permits rounded out the top five.