New home construction accelerated sharply in June in Twin Cities

Twin Cities homebuilders are having their very best summer in at least a decade. During June, 571 permits have been issued to build 610 houses and apartments throughout the 13-county metro area, according to data compiled by the Keystone Report for the Builders Association of the Twin Cities. Of those permits, 557 were for single-family homes, a 24 percent increase and the biggest number in recent memory. “We’re definitely starting to see the low inventory of existing single-family housing impact new construction,” said Meg Jaeger, president of the builders association. The industry is getting a boost from persistently low mortgage rates and a shortage of house listings that’s prompting buyers who can’t find a suitable existing home to build instead. And the report provides more evidence that homebuilders, who had a slow comeback from the 2008-09 recession, are now finally catching up to the apartment developers who led the housing recovery. With about 11,000 new apartments having been built over the past three years in the metro, according to Marquette Advisors, supply and demand for rental apartments has moved closer into balance.


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