Twin Cities homebuilders continue to build new single-family homes at a brisk pace, but November continued to be slower than last year’s all-out surge. Area homebuilders pulled 619 permits for new single-family homes in November, a 12% drop from this time last year. Multifamily construction continued to pick up when compared to the slow start to the year with permits pulled for 877 units in November, a 2% increase from this month last year.
“Our housing market remains critically undersupplied, and that has homebuilders on their toes trying to keep up with demand,” said Todd Polifka, 2021 president of Housing First Minnesota. “With the supply chain problems, labor shortage and roadblocks to development we are dealing with, it is no surprise to see permit numbers slow from the all-out blitz of last fall.”
According to data compiled by the Keystone Report for Housing First Minnesota, there were 661 permits issued for a total of 1,496 units during four comparable weeks in the month of November.
“Even with the growth we have seen this year in new homes construction in the Twin Cities, it will still not make a dent in the shortage of homes in our region,” said David Siegel, executive director of Housing First Minnesota. “The lack of homes for sale, combined with all the cost increases for construction we’ve seen recently, will continue to push home prices up in the Twin Cities.”
For the month, Lakeville took the top spot with 53 permits issued. Maple Grove came in next with 49 permits. Cottage Grove with 34 permits, Woodbury with 32 permits and Otsego with 29 permits rounded out the top five.