Roseville, Minn – Single-family home construction activity in the Twin Cities saw strong activity in December. Metro builders pulled permits for 401 single-family homes during the month, a 51% increase from the same time last year.
Activity in the multifamily construction sector, however, saw a decrease in activity with permits pulled for only 214 units. This is a 59% decrease in units compared to this same time last year.
“Homebuilding went for a ride this year as interest rates impacted all areas of the market,” said John Quinlivan, 2023 board chair of Housing First Minnesota. “Yet, buyer demand remains high, and conditions in the existing market continue to steer more buyers to purchasing newly built homes.”
There were 412 permits issued for a total of 615 units during four comparable weeks in December, according to the Keystone Report.
“As interest rates begin to come down from their two-decade high, we may see a pick up in buyer activity,” said James Vagle, CEO of Housing First Minnesota. “However, Minnesota’s housing market is severely lacking inventory. The time to modernize our state’s zoning practices and allow for homes of all price points to be built is now.”
For the month in permits, Woodbury took the top spot with 50 permits issued. Rosemount came in next with 27 permits. Blaine was third highest with 24. Victoria with 22 permits and Lakeville with 21 permits rounded out the top five.
For the month in units, Minneapolis came in on top with 174 permitted units. Woodbury came in next with 50 units, followed by Rosemount with 32 units. Lakeville with 25 units and Blaine with 24 units rounded out the top five.