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Homebuilding in the Twin Cities was up 50% last month as buyers took advantage of persistently low mortgage rates.
During March, builders were issued 631 permits to build single-family homes the most since at least 2004, according to a monthly report from Housing First Minnesota, a trade group that represents homebuilders. We are seeing the impacts of having the millennial generation at peak homebuying ages while boomers are also in the market for their move-down home, said Todd Polifka, 2021 president of Housing First Minnesota, in statement. All while there is a historic shortage of homes for sale in the Twin Cities.
Lakeville saw most permits and highest number of units in metro. Shutterstock
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.”
Single-family homebuilding surges 32% in Twin Cities Twin Cities single-family home construction rise 32% from February 2020. March 1, 2021 5:23pm Text size Copy shortlink:
Housing construction in the Twin Cities metro during February was up sharply for the second month in a row.
Builders and developers in the Twin Cities were issued 558 permits to build 946 units during February, according to data compiled by the Keystone Report for Housing First Minnesota. That included 536 permits to build single-family houses, a 32% increase over last year at the same time. Multifamily construction, mostly market-rate rentals, was down by 16% to 410 planned units.
Gains in single-family construction so far this winter have been driven by near-record low mortgage rates and a shortage of existing homes for sale at a time when many buyers are looking to trade up from their rental or starter home. The pandemic has helped fuel tha
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Minnesota’s single-family homebuilding market turned conventional wisdom about the state of the economy on its head in 2020.
While it may be a stretch to say that homebuilders are sorry to see 2020 go, residential contractors had a surprisingly strong year. Todd Polifka, owner of Custom One Homes in Woodbury and the newly installed 2021 president of Housing First Minnesota, a homebuilder association with more than 1,000 members, is optimistic that growth will continue in 2021.
Minnesota’s single-family homebuilding market turned conventional wisdom about the state of the economy on its head in 2020.
While it may be a stretch to say that homebuilders are sorry to see 2020 go, residential contractors had a surprisingly strong year. The numbers don’t lie: In 2020, permits for new single-family homes in the 13-county metro area closed out the year roughly 5% ahead of 2019, according to the Keystone Report.
Todd Polifka, owner of Custom One Homes in Woodbury and the newly installed 2021 president of Housing First Minnesota, a homebuilder association with more than 1,000 members, is optimistic that growth will continue in 2021.