Home Building Activity Ticks Up in the Twin Cities
As consumer confidence and incomes rise, home building activity in the Twin Cities metro area continues to rebound. According to the Builders Association of the Twin Cities (BATC), housing construction so far this year is up 23 percent from the same period in 2012, putting builders on a track for their best year since 2007.
During June alone, 496 permits were issued to build 912 units. Minneapolis led the top five cities permitting 380 units. Brooklyn Park and Woodbury were in the second position with 31 units, followed by Ramsey with 29. Construction of new homes in Blaine MN, Chanhassen MN and Lakeville MN tied for fifth place with 23 units permitted each.
So far this year, builders were issued 2,379 permits to build 4,204 units, a dramatic change from this time four years ago when there were only 1,633 units.
In the south metro, Lakeville continues as the busiest homebuilding market in Dakota County and one of the metro area’s most active. The city has recorded 172 permits since the beginning of the year through the end of June, up from 107 for the same period a year ago.
In the north metro, Blaine is closing in on Coon Rapids for the title of largest city in Anoka County. It was the fastest growing Twin Cities suburb from 2010 to 2012. The only cities that grew more during that time period were Minneapolis and St. Paul themselves, but the difference is in who has been moving in: The Twin Cities have been building more rental units, while much of the new home construction in Blaine has been single-family homes.
Single-family construction is on the rebound across the metro. Over the past year, sales of new homes have been up nearly 30%, according to the Minneapolis Area Association of Realtors. That doesn’t include custom homes that weren’t listed through the Regional MLS.
Most of that single-family construction has happened in Woodbury, which issued 176 individual permits so far this year. Lakeville and Blaine were next in line. Many of the permits Brooklyn Park issued were for units in a subdivision called Oxbow Creek.
Increased consumer confidence and higher incomes are impacting the homes that are being built, too. In June, the value of building permits grew 33 percent to $857 million. Twin Cities area residents have shown a willingness to spend on luxurious homes and upscale rentals, including a sprawling luxury apartment building along the Midtown Greenway in south Minneapolis.
Much of the construction recovery has been the swell of upscale rental apartments and other kinds of multifamily housing, though. That includes small townhouse projects and senior living facilities, which represented nearly half of all planned units to be built in the metro this year.
Are you ready to buy a home in one of the communities listed above or another Twin Cities suburb? Contact us to talk to an expert Twin Cities Realtor.