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.
New construction demand continues to grow with Minneapolis seeing their construction volume at three times the amount of last year. Housing starts are now 82.5% above the low hit in April 2009 but still short of the housing peak in 2007. Last month single family building permits were up 6.7% making it the highest level since July 2008
Forecasters expect permits to level off now that the winter season is coming but they think we will still be about 25% ahead of last year by the end of the year.
The increase in new construction will help the economy get back on track too as it provides jobs for the builders, sub-contractors and suppliers.
According to the Builders Association of the Twin Cities, 413 permits were issued to build 666 units which is about 90% more than in September 2011! Not only has the number of permits increased but the value of the September permits was the highest of the year so far.
Through the first three quarters of 2012, the value of permitted units rose to $1.1 billion, a 48.7 percent increase in value over the same period in 2011. The nine-month performance marked the first time the value of permitted units has exceeded $1 billion in past five years
So far Blaine has been the leader in single family home construction with 287 permits for the year at the end of September followed by Woodbury with 182.
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