2016 Marks The Best Year For Twin Cities Housing Construction In A Decade
Strong growth in the number of building permits for single-family homes pushed 2016 to be the busiest year in Twin Cities residential construction since 2006, the Builders Association of the Twin Cities (BATC) reported on Thursday.
Total permits rose 11 percent year-over-year, from 4,811 in 2015 to 5,345 this year.
As the inventory level of pre-owned homes shrunk in 2016 to its lowest level in 14 years, construction companies began to focus more on the demand for single-family homes. Approximately 12 percent more permits for single-family homes were issued this year over last year.
Meanwhile, fewer multifamily units are being built — permit rates were down 9 percent year-over-year.
“Owning a home is still very much a part of the American Dream and the 2016 permit numbers show it’s becoming a reality for more families,” said Meg Jaeger, president of the BATC, in a statement.
Across the 7-county metropolitan area, more permits were pulled in Lakeville (401) than any other city this year. Rounding out the top five was Blaine (309), Plymouth (286), Woodbury (270) and Otsego (214).
However, despite the high level of residential construction activity this year, BATC executive director David Siegel believes more can be done.
“While the growth we’ve seen in 2016 is promising,” he said, “we also know that we are still below what’s considered normal levels for residential construction. Our efforts at the capitol in 2017 will feature incentives for first time homebuyers and regulatory reform that will help Minnesotans afford a secure future.”
Yet, the need for more houses isn’t an issue isolated to the Twin Cities. In the September issue of Twin Cities Business, we looked into how a lack of housing options throughout Greater Minnesota has stifled the ability of certain employers to bring in talent and grow their businesses.