May Residential Permits Rebound From April
More local residential construction permits were issued in May than in any other month over the past year, according to figures released Friday by the Builders Association of the Twin Cities (BATC).
The BATC reported that 259 residential building permits were issued in the Twin Cities metro area in May, up 27.6 percent from April when 203 permits were issued but down 20 percent from May 2010 when 324 permits were issued.
The number of permitted units in May nearly tripled from April to 639 units, which represented a 32.6 percent increase from May 2010.
BATC records growth by units because projects like condos and townhomes often include multiple units but require only one building permit.
Year-to-date, 1,017 permits have been issued, down slightly from last year when 1,249 permits had been issued by the end of May. The number of permitted units so far this year-1,490-represented a 31 percent decrease from last year when there were 2,159 permitted units by the end of May.
“While 2011 still lags 2010 in year-to-date production, May's permit numbers are welcome news,” Rich Riemersma, BATC president, said in a statement.
“Today's incredibly low interest rates, resale inventory on a downward trend, a slowly improving economy, and pent-up demand from years of household formation well under historic averages are all positive signs for new construction,” Riemersma continued.
Bloomington led the metro in building with 234 permitted units during the month. Minneapolis followed with 68 units, and Blaine had 40 units. Maple Grove had 31 permitted units in May, and Vadnais Heights rounded out the top five with 29 units.
Data released by Roseville-based BATC is compiled by local research firm Keystone Report.
BATC is an association that includes builders, remodelers, subcontractors, suppliers, and other professionals who support the building industry. Members subscribe to a defined code of ethics, and all builders agree to meet minimum performance standards for construction and business practices.