Single-Family Home Construction Up 50% in March
The inventory of homes for sale is thin and interest rates remain historically low. That means Twin Cities home builders are very busy. Housing First Minnesota reported that builders pulled 631 permits for single-family homes in March, a 50 percent jump from March 2020.
As a song from the mid-1980s put it, “Welcome to the Boomtown.”
“We are seeing the impacts of having the millennial generation at peak home buying ages while boomers are also in the market for their move-down home, all while there is a historic shortage of homes for sale in the Twin Cities,” said Todd Polifka, president of Housing First Minnesota, in a statement. “Our housing market is in dire need of new single-family homes at all price points, and homebuilders are doing their best to meet that demand.”
At the same time, multifamily construction – primarily apartments – was flat for the month. Multifamily permits were pulled for 323 units in March, a drop of 1 percent compared to March 2020.
So far this year, Lakeville is topping the charts for seeing the most activity. For the month of March, Lakeville saw 58 permits for a total of 262 units, the most in both categories across the metro. For the total number of permitted units, second-place Woodbury was far behind with 57 units.
Year-to-date, Lakeville has seen 183 permits for a total of 597 units, again ranking first in the Twin Cities for both categories.
For the year so far, the next four cities with the most permitted units are:
- Minneapolis: 520 units
- Fridley: 335 units
- Eagan: 207 units
- Shakopee: 192 units
Suburbs located further from the core of the metro typically see the most building activity because they have the most available land for new building and development. As ground zero for the development of new apartment buildings, Minneapolis typically ranks high for the total number of units.