New home construction at lowest point since 2009by Annie Baxter, Minnesota Public Radio
St. Paul, Minn. — The number of Twin Cities residential housing units that have been permitted so far this year is at the lowest point since the housing downturn.
That's according to the Builders Association of the Twin Cities. The trade group says the decline stems from a drop-off in construction of multi-family apartments and condos.
Rich Riemersma, the association's president, said the market for single family homes is doing better but still has problems.
"It's just tough out there yet," he said. "I think part of it has to do with financing. Some people are still trying to sell their existing homes. And not as many people are moving forward at this point even though they want to.
According to the Builders Association of the Twin Cities, homebuilders only pulled 203 permits for new home construction in April. That's a drop of one third from the same month last year when the first-time homebuyer tax credit drove many sales.
Still, building activity in April does look better in comparison to the same month in 2009. The number of permits is higher, particularly for single-family home constructions. And the dollar value of those permits is up, too.