Twin Cities Homebuilding On the Rise as Inventory Levels Fall
In February, the number of homebuilding permits grew by nearly 20 percent over the same month last year. That’s according to the latest Keystone Report from Housing First Minnesota.
Builders pulled 406 permits this month compared to 393 permits in February 2019. There was an uptick in the number of permits for both single- and multi-family units, with each category growing by more than 15 percent year over year. The news comes amid a shrinking supply of available homes. Earlier this month, the Minneapolis Association of Realtors said there was a nearly 15 percent year-over-year decline in the number of homes for sale in January.
“We’re definitely seeing that reflected in the numbers,” said Housing First Minnesota spokeswoman Katie Elfstrom. “There’s not inventory out there. So more and more families are looking to build as an option.”
Housing First Minnesota, which represents the interests of home builders and remodelers in the Twin Cities, projects a “strong spring” for homebuilding activity.
Lakeville, where homebuilders received 37 permits, ranked first for the number of permits issued in February, followed by Blaine and Plymouth, where 25 permits were issued.
Last month, Housing First Minnesota reported a 3 percent uptick in the number of permits pulled.