Apartments continued to dominate housing construction in the Twin Cities this month, though plans to build single-family houses far exceeded last year’s pace despite higher a recent rise in mortgage rates.
During August, metro area home builders were issued 494 permits to build 1,114 units, according to data compiled by the Keystone Report for the Builders Association of the Twin Cities (BATC). That’s a 28-percent increase in permits, and a 24-percent increase in units over last year.
Multi-family housing, mostly luxury rental apartments, represented more than half of all new units planned for the coming months, though with rates on the rise and inventories of new and existing houses getting tighter, builders are seeing significant increases in demand for new houses.
“Because mortgage rates and prices have started to rise, our builders expect to see some additional sales from buyers trying to beat future increases,” said Pamela Belz, Builders Association of the Twin Cities 2013 president and developer with Senior Housing Partners.
Here's a link to the full report, and watch the Saturday paper for a complete story, including the latest mortgage rates.