MINNEAPOLIS, MN - With buyers on the sidelines, residential construction in the Twin Cities area in May was about half of what it was last year, but it showed some signs of improvement from April, thanks in large part to a bump in multifamily building, according to data released Wednesday by the Builders Association of the Twin Cities. During May, home builders were issued 255 permits to build 498 units. That's a 52 percent decline in permits and a 34 percent decline in new units.
Association President KC Chermak of Pillar Homes said the monthly increase "may not spell the beginning of a sustained recovery," but he added that there's some evidence that the market has hit bottom.
In February, construction activity hit a 10-year low of 170 permits to build 217 units. (More than one unit can be built with a single permit.)
The market got a modest boost last month from an increase in multifamily construction, including condominiums and rental apartments. Minneapolis, for example, issued more permits last month than any other community, six permits to build 89 units.
Throughout the metro area so far this year, 1,073 permits were issued to build 1,637 units, a 50 percent decline in permits and a 56 percent drop in new units.
For much of last year, multifamily construction represented 40 to 60 percent of all permits, but it dropped to 29 percent in February, bottomed out at 14 percent in March and then spiked again to 53 percent last month.
Source: StarTribune.com