According to the Builders Association of the Twin Cities, building permits and planned projects are at their highest level since 2007 and permits in the Twin Cities are up by 37% since the same time last year.
In the Twin Cities, 452 building permits were issued in May 2013 and year to date there have been 1,879. Minneapolis had the most number of unit permits with 183 in May. Blaine came in second with 93, Woodbury had 39, Lakeville 35 and Plymouth had 33.
Construction in the Twin Cities is continuing its upward trend with a 110% increase in new construction in April 2013! Inventory of existing homes for sale continued to fall another 4.5% putting inventory levels at a low not seen in over a decade! Building permits for single family homes in the Twin Cities were up 27%. With the low rental vacancy rates, less than 3%, permits for building apartments in Minneapolis were way up once again. Because of permits for apartment buildings, Minneapolis led the new construction permits in April with 408 units, Lakeville was second with 32 units, Chanhassen had 29 and Woodbury 24. Blaine had the most single family construction permits with 20. This information comes from the Minneapolis Area Association of Realtors and the Builders Association of the Twin Cities.
When buying a home you need to remember that there are costs other than the initial purchase price. There are the property taxes, utilities, home maintenance to name just a few but in recent times the utility bills are declining. The National Association of Home Builders studied home costs on different aged homes and came to the following conclusions.
“It found that homes built before 1960 have average maintenance costs of $564 a year, while a home built after 2008 averages $241. Similarly, operating costs average nearly 5 percent of the home’s value for pre-1960 structures, while they average less than 3 percent when the home was built later than 2008. The study then compared the first year after tax cost of owning a home by the year the house was built, taking into account the purchase price, mortgage payments, annual operating costs, and income tax savings. This data showed that a buyer can afford to pay 23 percent more for a new house than for one built before 1960 and still maintain the same amount of first year annual costs. While mortgage payments will be greater with the higher purchase price of a newly-built home, the lower operating costs mean the home buyer will have annual costs that are about the same as if they’d bought a lesser-priced, older home with a smaller mortgage payment and higher operating expenses.
The data all depends on where you live, how you use your own utilities, the size of the home and other factors, but it is something to consider when deciding if you should build a new home or buy an older home.
Other cities with a good number of building permits were Mendota Heights with 37, Eagan with 29, Rosemount with 23, Farmington with 21, Apple Valley with 13, Burnsville with 8 and Inver Grove Heights with 5.
In the Twin Cities Woodbury topped the building permit list for the first quarter of the year with 88, Prior Lake had 41 and Savage had 27.
The statistics are from the Builders Association of the Twin Cities.