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The number of residential constructions in the Twin Cities metro declined in November, with “dips across all areas of the market,” per Housing First Minnesota, referring to data collected by the Keystone Report research firm, which tracks new residential construction permits. 

The report describes a 48% decrease in multifamily units under construction compared to last November. There was also a 2% drop in building permits obtained by homebuilders for single-family homes. A total of 525 permits were granted for 607 housing units, down from 670 permits for 856 units in November 2024. 

“November’s decline in homebuilding activity reflects the challenges buyers are weighing in today’s market,” Art Pratt, president of construction operations for Pratt Homes and board chair of Housing First Minnesota, said in a press release.

So far this year, the metro has pulled 5,832 permits. That’s about steady with this time last year (5,953), revealing overall stagnancy in permitting. After years of growth in housing permits, the metro reached a 2021 high of 7,811, followed by a drop the next year to 5,835.

In November, Lakeville led in number of permits, with 50, followed closely by Corcoran, with 48, and Shakopee, 33. As for permitted units, Minneapolis had the most, with 75, followed by Lakeville, 50, and Cottage Grove, 48. 

The interest in homeownership has not disappeared, Pratt said, “and the year ahead may provide the clarity buyers need to step back into the market.”