Jul 11, 2023 - Real Estate
Twin Cities homebuilding falls, but still hotter than the U.S.
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Homebuilders in the Twin Cities have slowed down from their peak pace in 2021 and 2022, but they continue to build more here than in the U.S. overall.
By the numbers: In the Twin Cities metro area, 54.9 permits per 100,000 residents were issued in May 2023, which is above the national rate of 42.3, according to a new analysis of Census Bureau data from Axios' Kavya Beheraj and Alex Fitzpatrick.
Why it matters: A post-pandemic nationwide housing shortage is keeping prices high, even with rising interest rates.
- Recent estimates from Freddie Mac indicate that the U.S. is short about 3.8 million units of housing, either for rent or purchase, Axios' Emily Peck reports.
- A bump in new home construction, however, could bring prices down. But the Twin Cities has not been keeping up with demand, even during the frothy market of 2021-22.
Zoom in: Of the 2,000 total permits issued this May in the Twin Cities, 1,212 were for buildings with five or more units, while 768 were for single-family homes.
- The Twin Cities continues to buck national trends as we're seeing more multifamily than single-family construction.