Home building in the Twin Cities this fall continues at a more tempered pace than last year.
During November, home builders were issued 619 single-family permits, 12% fewer than last year, according to data compiled by the Keystone Report for Housing First Minnesota.
Apartment builders were more active. Builders were issued enough permits to build 877 units in November, mostly market-rate rentals and a 2% increase over the same time last year.
Combined, a total of 661 permits were issued to build 1,496 units, putting builders on pace to best 2020 by 1,250 units. (A single permit can be used to build more than one unit.)
Though demand for housing has been strong and house listings in the Twin Cities remain scarce, home builders have struggled with a variety of issues that have stifled construction.
The rising — and volatile — cost of land, labor and materials has made pricing a home difficult, forcing many builders to limit how far into the future they'll accept an order. And supply-chain issues have also made it difficult to deliver homes on schedule.
"With the supply-chain problems, labor shortage and roadblocks to development we are dealing with, it is no surprise to see permit numbers slow from the all-out blitz of last fall," Todd Polifka, president of Housing First Minnesota, said in a statement.
"Our housing market remains critically undersupplied, and that has home builders on their toes trying to keep up with demand."
