Homebuilding Boom Slides Slightly in August
Homebuilding has been going great guns of late. But for the month of August, Housing First Minnesota reported a 4 percent decline in single-family homebuilding permits compared to last year, the first decline seen so far this year. Overall, home builders pulled 576 permits for single-family homes in August.
Woodbury led the pack with the 59 permits pulled in August, the highest for any city. Other cities at the top of the list included Lakeville, Otsego, Cottage Grove, Blaine, and Carver.
Housing industry leadership blamed several factors outside of the control of builders for the latest numbers.
“With the lack of existing homes for sale, the labor shortage, supply chain problems, and the state’s existing regulatory roadblocks, constructing new homes in our market has never been more difficult,” said Todd Polifka, president of Housing First Minnesota, in a statement. “The demand for new homes remains, but our ability to build those homes at a price Twin Cities families can afford grows more challenging by the day.”
At the same time, builders also pulled permits for 425 units of multifamily housing, a drop of 18 percent compared to a year ago.
Minneapolis typically leads the multifamily category, but for August the top spot went to Maple Grove with 259 permitted units.
Notably, the total value for all permits – single-family and multifamily combined – pulled for August totaled $225.8 million which marks a 2.4 percent dip compared to last year.