Twin Cities homebuyers seek new builds as inventory shrinks
Add Axios as your preferred source to
see more of our stories on Google.
The Twin Cities' market for newly built homes is thriving as fewer homeowners want to sell.
Why it matters: A lack of inventory in most markets is fueling buyers' appetite for new construction, real estate experts say.
The big picture: New metro-area home sales rose roughly 62% in July compared to a year ago, while sales of existing homes dropped 13.5%, according to Minneapolis Area Realtors.
- Sales of new homes are picking up pace in the U.S., but the Midwest is lagging behind the South and the West.
Zoom in: Twin Cities single-family home construction in July posted its first month with year-over-year growth since January 2022, per Housing First Minnesota.
- Oakdale-based Cardinal Homebuilders has seen traffic jump in recent weeks to view its model home in Cottage Grove, company vice president Tony Wiener tells Axios.
- "A lot of people are turning toward new builds just because there's more supply on that side right now," Wiener says.
Between the lines: Previously owned listings hitting the Twin Cities market are down nearly 19% compared to July 2022, per Minneapolis Area Realtors.
State of play: The new-build boost comes after rising interest rates curbed pandemic-driven home buying demand.
- Builder confidence is now at its highest level since June 2022, according to the National Association of Home Builders.
What we're watching: Some builders are offering smaller, more affordable houses to lure first-time buyers, Axios' Matt Phillips reports.
Go deeper: Old houses now cost as much as new houses