Minnesota’s home builders are in the middle of their best year in a decade, leading to an optimistic outlook for 2018, according to a survey form the University of St. Thomas.
The survey, which is a partnership between St. Thomas and the Builders Association of the Twin Cities, polls the same panel of 35 industry leaders annually in June and again in December about their expectations for the upcoming year in six key areas of the housing market.
“The industry leaders we poll every six months are actively engaged in studying both the demand and supply side of the housing market,” said Herb Tousley, director of real estate programs at the University of St. Thomas. “Since they are involved in creating new housing units and adjusting supply-to-demand conditions, these individuals are close to the actual changes taking place in the market.”
While builders are feeling optimistic about 2018, affordability issues and increased mortgage rates leave builders a bit cautious as well.
“There are still several factors holding back new construction including land prices, the regulatory burden and a shortage of labor,” said David Siegel, executive director of the Builders Association and Housing First Minnesota.