Residential construction is increasing in the Twin Cities, according to data compiled by the Keystone Report for the Builders Association of the Twin Cities.
Although multi-family permits decreased for the month, single-family construction stayed strong and helped maintain the ascending trend for the region. The recently released permit statistics showed that the 509 single-family permits issued in July constitute a higher number than in any other single month in the past six years. The most recent high level, which exceeded the number of single-family permits issued in July, was back in June 2007, when there were 537 single-family permits issued.
The slight slowdown in multi-family units brought the total number of units permitted in July 2013 down 11 percent compared to July 2012, but year-to-date, the number of units is still 24 percent higher than at this time in 2012. There were 533 permits, for a total of 698 units during July 2013, and the year-to-date numbers show that the cities issued a total of 2,912 permits, for 4,914 units.
The National Association of Home Builders reported that new home sales are at a five-year high, and builder optimism is at its highest point since 2005, according to Pamela Belz, Builders Association of the Twin Cities 2013 president and developer with Senior Housing Partners. She added: “In talking to members of our association, I’m hearing much the same story. But locally as well as nationally, there are still concerns as we see interest rates rise, inventory of lots dropping rapidly and labor shortages that may become critical in the fairly near future.”
The top five cities’ ranking was once again led by Minneapolis with 95 units permitted in July, with Maple Grove (39 units), Lakeville (38 units), Eagan (33 units) and Prior Lake (32 units) completing the ranking.
For more market data about Minneapolis, click here.
Charts courtesy of Keystone Report via The Builders Association of the Twin Cities.