New Construction tripled this month for new housing and apartments compared to just a year ago with builders being issued 377 permits this month! This is just another sign that the housing market is starting to recover.
Even though business is way up over a year ago, it is still way below the level it should be at but it could take several years to reach that level again. Normal is considered about 14,000 housing units per year and 2012 is looking at around 4000.
According to a survey by Pitney Bowes Software, they selected the Twin Cities as one of just 400 metro areas where the housing market is supposed to increase. They calculated a 2-8% increase in household growth locally over the next 5 years which is still well below normal but shows that long term growth and a demand for housing is still there.
The Twin Cities Multi Family Market is thriving right now! According to Marcus & Millichap Real Estate Investment Services, it ranks as one of the strongest in the country!
Part of the reason for this is the tremendous amount of new jobs being created in the Twin Cities. Alone in 2012 there are expected to be another 28,000 new jobs, several with Fortune 500 companies in the area. Target is doing some of the biggest amounts of hiring!
Builders are expected to finish about 1,870 new apartments in 2012, in 2011 they finished just 477. Even with the new apartments, the vacancy rate is forecast to hold steady at around 2.9% and rents are expected to rise around 3%.