The boomlet in multifamily construction continued in the Twin Cities this month, while work on new single-family homes fell for a third straight month.
In July, developers were issued permits for 987 multifamily units, a 50% increase from a year ago. They pulled permits for 383 single-family homes, a 33% drop from a year ago, according to Housing First Minnesota, a trade group of builders.
The figures represented a decline in new construction activity from June and May. While that's partly a reflection of seasonal patterns, builders and real estate agents have also been watching for signs that sharply higher mortgage rates are affecting demand.
"The desire for homeownership remains strong, but higher interest rates are pushing many buyers to press pause," James Julkowski, president of Housing First Minnesota, said in a statement.
In number of permits, Lakeville led the metro with 28, followed by St. Michael and Otsego. In number of units covered by the permits, Minneapolis led with 416, followed by Blaine and Mahtomedi.
