Latest Survey of Minnesota Home Builders Finds them Optimistic for 2017, but With Some Concerns

  Herb Toursley, director, Shenehon Real Estate Center

Herb Toursley, director, Shenehon Real Estate Center

Leaders in the Minnesota single-family home construction industry are generally optimistic about market conditions for the coming year although they have concerns about mortgage rates and the cost of land and building materials. That’s according to a new survey conducted by the University of St. Thomas Shenehon Real Estate Center in partnership with the Builders Association of the Twin Cities.

The index reflecting the panel’s expectation of the number of new single-family housing starts was recorded at 61, down slightly from 63 in June.

Despite the slight decrease, at 61 there continues to be a high expectation the number of single-family housing starts will show a marked increase during 2017.

The Minnesota Home Builders Survey polls the same panel of 35 industry leaders in June and again in December about their expectations for the coming year in six key areas of the housing market. These experts are asked to assign a number of zero to 100 for each of the six questions. A midpoint score of 50 is neutral; scores higher than 50 indicate a more favorable outlook and scores lower than 50 indicate a more pessimistic outlook.

“These results align closely with what we are hearing from the market and our members,” said David Siegel, executive director of Housing First Minnesota. “While there is a great need for residential construction in the, there are still several factors holding it back including land prices, the regulatory burden and a short- age of labor.”

St. Thomas Shenehon Real Estate Center in partnership with the Builders Association of the Twin Cities.

The index reflecting the panel’s expectation of the number of new single-family housing starts was recorded at 61, down slightly from 63 in June.

Despite the slight decrease, at 61 there continues to be a high expectation the number of single-family housing starts will show a marked increase during 2017.

The Minnesota Home Builders Survey polls the same panel of 35 industry leaders in June and again in December about their expectations for the coming year in six key areas of the housing market. These experts are asked to assign a number of zero to 100 for each of the six questions. A midpoint score of 50 is neutral; scores higher than 50 indicate a more favorable outlook and scores lower than 50 indicate a more pessimistic outlook.

“These results align closely with what we are hearing from the market and our members,” said David Siegel, executive director of Housing First Minnesota. “While there is a great need for residential construction in the, there are still several factors holding it back including land prices, the regulatory burden and a short- age of labor.”

Here are the scores for each of the six questions that were asked in December 2016:


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