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Despite growing concerns over COVID-19 and the impact it is having on the economy, permits for single-family construction sailed ahead. Single-family permits saw another double-digit increase in March with 409 permits pulled, a 20% increase over 2019. Multifamily activity did see a slowdown compared to the past few months, making up for less than 50% of total residential activity for the first time in seven months.
“There is a serious shortage of single-family homes in the Twin Cities,” said Gary Kraemer, president of Housing First Minnesota. “Builders clearly saw this pent-up demand as homebuyers were very active to start the year. While we expect to see a slowdown in activity from this unprecedented pandemic event, it does not change the fact that we have an undersupply of housing.”
According to data compiled by the Keystone Report for Housing First Minnesota, there were 418 permits issued for a total of 736 units during four comparable weeks in the month of March.
“We’re pleased the governor declared residential construction a critical sector as it has become even more evident during this time how important safe, quality housing is for our communities,” said David Siegel, executive director of Housing First Minnesota. “We’ve advised our builders to take additional precautions on job sites to ensure safety. Our ability to move ahead with construction will help us continue to address the area’s housing shortage and affordability crisis.”
For the month, Lakeville took the top spot with 52 permits issued. Cottage Grove came in next with 28 permits, followed by Woodbury with 24 permits, Minnetrista with 18 permits issued and Shakopee with 16 permits.