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Permits to build single-family townhomes and rentals increased markedly in Minnesota's Twin Cities in September, while permits to build single-family homes decreased.
In total permits, the Twin Cities' saw a 15 percent decline. Only 444 of the 1,277 permits issued were for single-family homes, down 19 percent annually, while townhome permits grew by 60 percent. The Star Tribune reports that six permits were issued to build 674 rental units that were generally on the higher end of the market. Tom Wiener, president of Housing First Minnesota, said in a statement, "The rise in townhouse construction undoubtedly reflects builders' efforts to reach the largest share of the market," adding, "Even as we saw more homes hit the market these past few months, we are still far below the levels of housing inventory we need."
The biggest planned projects for the month were in Minneapolis where Frana was issued two permits to build 192 units; in Ramsey, Eagle Builders was issued one permit to build 174 units. David Siegel, executive director of Housing First Minnesota, said in a statement that a combination of an increase in interest rates and tariffs, and workforce shortage are an ongoing challenge for the industry. "The drop in single-family housing is concerning as we know builders are facing increasing headwinds," he said.
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