For the second month in a row Twin Cities’ single-family construction posted double digit gains in permit numbers. With 513 permits pulled for the month, single-family activity rose 12% over July 2018. With 406 permitted units, multifamily construction had one of its slowest months of the year, dipping below 50% of construction activity for the first time since January of this year.
“With the economy steaming ahead and interest rates dropping, homebuyers are showing continued interest in building new homes,” said John Rask, president of Housing First Minnesota. “As prices of existing homes continue to climb and inventory remains tight, we expect this trend to continue.”
According to data compiled by the Keystone Report for Housing First Minnesota, there were 528 permits issued for a total of 919 units during four comparable weeks in the month of July.
“Home prices hit another all-time high last month,” said David Siegel, executive director of Housing First Minnesota. “The only way to bring down the price of all homes is to build more. Unfortunately until homebuyers get some relief on the regulation and fee side of homebuilding, we will not be able to help ease our regions ever-growing home prices.”
For the month, Lakeville took the top spot with 45 permits issued. Otsego and Woodbury came in next both with 26 permits, followed by Blaine and Elk River both with 24 permits issued.
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