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Steady as she goes for housing construction in the Twin Cities this month

Housing construction in the Twin Cities this month has been relatively flat. During the past four-weeks builders were issued 359 permits to build 516 units, according to a monthly report from the Builders Association of the Twin Cities. That was a 14 percent decline in permits and three units short of last year, and the third month in a row during which construction activity failed to beat last year. (A single permit can be issued to build more than one unit).

“While we are pleased to see construction clipping along at a relatively steady pace, we remain concerned after seeing three months of disappointing numbers,” said Chris Contreras, BATC president.

In contrast to last year, housing construction this spring has outpaced apartments. Only about one-third of all planned units so far this year were multifamily buildings, mostly luxury rental apartments, compared with an average of about 50 percent last year.

  1. Here are the communities with the highest number of planned new units last month:
  2. Champlin: 72
  3. Edina: 65
  4. Lakeville: 34
  5. Blaine: 27
  6. Maple Grove: 23

The report comes after a glowing national report from the U.S. Census Bureau showing that new single-family home sales during April exceeded expectations, rising 6.8 percent compared with the revised March estimate of 484,000

The Builders Association of the Twin Cities has contracted with Keystone Report, a local research firm, to maintain a database with information about new residential construction permits around the metropolitan area. After a builder has picked up the permit from a city, Keystone Report compiles and updates weekly residential housing permits by city for 70 percent of the metropolitan-area municipalities in the greater 13-county region. Planned units are the total number of housing units planned to be built under the permits issued (one permits is issued per building which may include more than one housing unit). Permit value does not include the land/lot costs.

The Builders Association of the Twin Cities has contracted with Keystone Report, a local research firm, to maintain a database with information about new residential construction permits around the metropolitan area. After a builder has picked up the permit from a city, Keystone Report compiles and updates weekly residential housing permits by city for 70 percent of the metropolitan-area municipalities in the greater 13-county region. Planned units are the total number of housing units planned to be built under the permits issued (one permits is issued per building which may include more than one housing unit). Permit value does not include the land/lot costs.

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Mortgage delinquencies in the Twin Cities declining rapidly

In yet another sign of improving fortunes for the housing market and broader economy, fewer Twin Citians are falling behind on their mortgage payment. CoreLogic said this morning that during March, only 1.96 percent of mortgage loans were 90 days or more delinquent compared to 2.49 percent for the same period last year.

The foreclosure rate is on the decline, as well, falling to 0.48 percent during March compared with 0.55 percent last year. Nationwide, the foreclosure was down, as well, slipping to 1.39 percent.

This map shows foreclosure rates by zip code. Note that the highest rates are still in the most exurban counties.

This map shows foreclosure rates by zip code. Note that the highest rates are still in the most exurban counties.