Housing Construction Permits Up In June
It’s all good news in the Twin Cities construction market these days.
A report by the Builders Association of the Twin Cities found 571 permits pulled in June for 610 units valued at over $188 million. That’s an increase of 19 percent over the same time last year. Total permits for the year so far—currently just over 2,500—are stronger than any year since before the Great Recession.
The growth was particularly pronounced for single-family homes, which saw a rise in building permits pulled by 24 percent, in part due to tight inventory.
“We’re definitely starting to see the low inventory of existing single-family housing impact new construction,” BATC president Meg Jaeger said in a statement. “We’re hopeful that this trend will continue as more home buyers see the benefits of building new.”
The surge in single-family homes has been particularly beneficial to second- and third-ring suburbs: Lakeville lead the way with 56 permitted units, followed by Plymouth with 40, Blaine with 34 and Woodbury and Apple Valley with 29.
The report matches another put out by Dodge Data & Analytics in New York. It cited a 16 percent jump in year-over-year residential construction starts in June that exceeded $290 million (over $1.1 billion for the year so far). Dodge also reported non-residential construction starts during June of almost $500 million. When combined, total construction starts for 2016 sit at about $2.3 billion, a 31 percent increase from the same time last year.
Both reports pulled from the 13-county metro area (the seven core counties plus Chisago, Isanti, Pierce, Sherburne, St. Croix and Wright).