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