Twin Cities Multi-Housing Construction Slows in April

MINNEAPOLIS-The growth of new residential construction is slowing, although the overall market condition remains very active, according to a new survey. The portion of multi-family housing of overall residential units fell in April, with a total of 526, or 46.1% of the total planned units, according to a survey by the Builders Association of the Twin Cities.

So far this year, there have been 1,422 multi-family units planned, or 46.7% of the total. This compares to multi-family units 52.7% annually for 2004, 48.6% in 2003, 43.7% in 2002, 41.5% in 2001, and 37.5% in 2000. “Even with a 10% to 20% dip in new construction activity from the recent highs, the Twin Cities new home market should be considered to be quite strong,” says Doug Nelson, president of the Builders Association of the Twin Cities and owner of New Spaces.

Nelson says that the Census Bureau predicts that Minnesota will surpass Wisconsin in population by 2030. “The growth of households combined with the metro area’s rich economic base should continue to drive new home sales at a rapid pace,” he says.

April had a total of 717 permits issued for 1,142 planned units at a value of $217.4 million. This is 21% behind the 903 permits, 11% behind the 1,283 planned units, and 9% behind the value of $238.6 million in April a year ago.

All top five cities in planned units were new to the list. In planned units during April, Blaine was first with 83 followed by Brooklyn Park with 68, Woodbury with 67, Shakopee with 54, and Maple Grove with 52. The top growth cities in permits were Woodbury with 49, Brooklyn Park with 45, Shakopee with 38, Blaine with 31, and Lakeville with 27. Keystone Report, a Chanhassen, MN-based research firm, compiles the information for the Builders Association of the Twin Cities.