Single-family and townhome construction had another strong month in July while the number of large multifamily projects plummeted. For the month, the number of single-family units increased to 459, a 4 percent increase over July of last year. Townhome construction saw the biggest increase with a 49 percent increase in the number of units over this month last year. Altogether multifamily units fell 68 percent when compared to July 2017.
According to data compiled by the Keystone Report for Housing First Minnesota, there were 477 permits issued for a total of 659 units during four comparable weeks in the month of July.
“The shortage of single-family homes is driving demand for new construction,” said Tom Wiener, president of Housing First Minnesota. “Builders are also trying to meet the demands of first-time homebuyers and boomers alike by creating more options through townhomes and villas.”
“We know the demand is there,” said David Siegel, executive director of Housing First Minnesota. “We believe if builders were not constrained by the labor shortage and the high cost of land and regulations they could better meet this demand.”
For the month, Lakeville took the top spot with 38 permits issued. Otsego came in next with 36 permits, followed by Woodbury with 24 permits. Rounding out the top five are Plymouth and Blaine both with 22 permits issued.