Just as the industry was catching up from the slow year, the government shutdown will halt some projects.
Residential construction permits jumped 13 percent in June from a year earlier but were largely flat from May, the Builders Association of the Twin Cities reported Friday.
The 260 permits issued during the month were the most in the last year. Single-family construction edged out apartment building, which accounted for 63 percent of activity last month. June's permits covered 385 units, compared with May's 259 permits for 639 units.
"We're happy with this month's numbers, but we're not out of the woods yet," said Rich Riemersma, president of the association.
Indeed, the monthly totals were less than half of what they were five years ago, before the recession took hold. And so far this year, new construction is down about 23 percent from last year.
The association blamed lousy weather, economic uncertainty and a foreclosure crisis that has yet to ease in the Twin Cities.
"Just as we're beginning to catch up, the government shutdown is something we just don't need," Riemersma said. "While a lot of construction work can continue, any new home or remodeling project that has not yet had their electrical inspection will be stopped in its tracks, leaving many homeowners in the lurch."
Travis Parman, a spokesman for Pulte Group, said the firm is seeing a rebound from relocation markets.
"It's a combination of an increasing number of jobs, pent-up demand where they've been waiting on the sidelines to see if the economy will improve and they've gotten tired of waiting, or grown to a point where they can't put off the move anymore," Parman said.
Marissa Evans • 612-673-4211