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Overall the 2018 residential construction permit numbers show that it was a good year, but with little growth. December was a strong month for residential permits, but not strong enough to make up for the slower than expected year. Single-family permits ended the year with a one percent increase compared to 2017. Multifamily construction fell by 9 percent in 2018 when compared to 2017. Town home construction was the bright spot for the year with a nearly 30 percent increase in the number of permitted units compared to 2017.
“Despite slower growth than expected in 2018 it was a very strong year for new home construction,” said Tom Wiener, president Housing First Minnesota. “There’s high demand for new housing in the Twin Cities and builders are innovating to meet homebuyers needs and budgets.”
According to data compiled by the Keystone Report for Housing First Minnesota, there were 523 permits issued for a total of 1,363 units during four comparable weeks in the month of December. For the year, there were 6,198 permits issued for a total of 12,749 units.
“Rising construction and regulatory costs combined with increasing mortgage rates is only adding to the housing affordability problem in the Twin Cities,” said David Siegel, executive director of Housing First Minnesota. “We need to address this issue so we can bring down the cost of housing for Minnesota families.”
For the year, Lakeville took the top spot with 506 permits issued. Plymouth came in next with 338 permits, followed by Woodbury with 320 permits. Rounding out the top five are Otsego with 272 permits and Lake Elmo with 265 permits issued.