New Homebuilding Rose Sharply in Twin Cities in November

Homebuilding in the Twin Cities metro posted a healthy gain in the Twin Cities metro during November, clocking the ninth year-over-year increase in a row.

During November, 465 permits to build 1,099 houses and apartments were issued in the 13-county metro area, the Builders Association of the Twin Cities said Tuesday. That was an 15.3 percent increase in permits, but a 3.7 percent decline in the total units compared with the same four-week period last year.

Though there were more apartment units than single-family houses permitted during the month, housing construction has been increasing dramatically in recent months as buyers hurry to take advantage or recent increases in mortgage interest rates and to beat higher prices.

During the month, 452 single-family houses were permitted, 20 percent more than last year. At the same time, 647 attached units, mostly upscale rental apartments, were permitted. That was a 15 percent decline over last year.

With more houses being built than apartments, the total value of those permits has increased dramatically. The combined value all units permitted during the month was $227.5 million, a19 percent increase over last year.

Minneapolis was the busiest city for total construction with 16 permits to build 466 units, mostly apartments including a 144-unit apartment building at 315 Seventh Ave. N. in the North Loop neighborhood that's being developed by a partnership between the Opus Group and Greco. Those figures also included a 198-unit, six-story apartment building that's being developed by a Kansas-based developer near the University of Minnesota campus at 117 27th Ave. SE.

Prior Lake was the next with 11 permits to build 54 units, followed by Blaine (28 permits to build 53 units) and Norwood Young America (3 permits to build 51 units).

The report comes in the midst of growing concerns about affordability. The average 30-year fixed-rate mortgage topped 4 percent for the first time since 2015, according to the latest weekly survey from Freddie Mac. And on Tuesday, the S&P CoreLogic Case-Shiller U.S. National Home Price Index hit an all-time high, breaking the previous peak set in July 2006, suggesting a complete recovery of U.S. home prices.

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