With housing inventory at a 14-year record low, Twin Cities residential construction continues to gather steam. February total units rose a remarkable 93 percent over this month last year, while permits were up 18 percent over February 2016. The increase in activity in home construction matches the increase in the number of homes in the Builders Association of the Twin Cities’ 2017 spring Parade of Homes. With 481 homes, it is the largest spring tour in nearly a decade.
According to data compiled by the Keystone Report for the Builders Association of the Twin Cities (BATC), there were 339 permits issued for a total of 717 units during four comparable weeks in the month of February.
“With a strong start to the year, our builders are very optimistic for a strong spring Parade of Homes Tour,” said Bob Michels, the Builders Association of the Twin Cities 2017 President. “For the homebuyers that have been struggling to find their dream home in the community they love in this tight housing market, this year’s event features the the most new homes for Twin Cities’ families to tour.”
“While there is an increasing demand for housing inventory, our builders are facing serious roadblocks trying to construct more entry-level homes,” said BATC Executive Director, David Siegel. “We are working with the MN REALTORS this year at the Capitol to support a package of common-sense legislative proposals that aim to protect the dream of homeownership for all by creating opportunities for first-time homebuyers and addressing the cost-drivers that are negatively impacting housing affordability.”
For February, Plymouth took the top spot with 30 permits pulled. Lakeville came in next with 29 permits, followed by Lake Elmo with 24 permits, Woodbury with 18 permits, and Apple Valley with 14 permits pulled.