Housing construction in the Twin Cities this month has failed to keep pace with last year, but after five months builders are on pace to match last year. That's according to a new monthly report from the Builders Association of the Twin Cities, which said that there were 421 permits issued for a total of 519 units during four comparable weeks in the month of May, 2014. That was a 7 percent decline in permits and a 33 percent decline in units.
Year-to-date, permits are down by a bit over one percentage point, while total units permitted in 2014 were just 1.2 percent higher than at this point last year. So far this year builders were issued 1,855 permits for a total of 3,332 units.
BATC officials attribute the monthly lull to a tough winter and a decline in apartment construction for the month.
“The housing recovery has not been able to get momentum yet this year,” said Shawn Nelson, Builders Association of the Twin Cities 2014 president and president of New Spaces. “The incredibly bad winter weather slowed construction, financing is still tight for consumers—particularly first time buyers—and the impact and uncertainty surrounding the Governor’s mounting regulatory proposals, such as the billion-dollar home indoor sprinkler mandate, are providing significant challenges for consumers and builders."
The most active cities for May:
- Inver Grove Heights: 72 units (66 units in one multi-family building).
- Woodbury: 41 units
- Blaine: 40
- Maple Grove: 33
- Lakeville: 28 units