Growth Trend for Twin Cities Residential Construction Continues in August 2013

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According to statistics released by the Builders Association of the Twin Cities, regional residential construction continues to grow. Single-family homes continue to lead the growth, up by 31 percent over totals at this time in 2012.

Fall 2013 Parade of Homes Entry #115 by Charles Cudd De Novo

Our builders expect to see some additional sales from buyers trying to beat future increases [in price and mortgage rates].

Both single family and multi-family home permitting was up for the month of August 2013, showing continued strength in the new construction market. A total of 3,315 single family homes were permitted so far in 2013, up 31 percent over January through August 2012. Year-to-date, multi-family construction is also up this year, showing a 17 percent increase over 2012 (2,761 units in 2013; 2,358 units in 2012).

According to data compiled by the Keystone Report for the Builders Association of the Twin Cities (BATC), there were 494 permits issued for a total of 1,114 units during four comparable weeks in the month of August, 2013. Year-to-date, cities issued 3,465 permits for a total of 6,088 units.

“Our members are preparing for a strong showing during the Fall Parade of Homes,” said Pamela Belz, Builders Association of the Twin Cities 2013 president and developer with Senior Housing Partners. “Because mortgage rates and prices have started to rise, our builders expect to see some additional sales from buyers trying to beat future increases.

“But those rising rates and prices show that as an industry we still have plenty of concerns that could negatively impact our recovery, including a possible requirement to install unnecessary indoor home sprinkler systems in some homes,” Belz said.

Minneapolis once again led the top five cities, permitting 332 units in July. Maple Grove was a close second, issuing 288 units. Coming in third was Lakeville with 46 units, followed by Plymouth with 40 and Blaine with 28 units permitted.

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