Inventory of all homes for sale in the U.S. is at a 20-year low. Economists have been calling for new home construction to help make up the shortfall in the market. Yet, the months of new home inventory in Minnesota continues to drop, falling another 2.1 percent in May.
For now, it looks as if the housing shortage is here to stay as builders cannot get new projects in the pipeline fast enough to make a real dent in the supply issue. The top cities in Minnesota for
active new home projects through the month of April were Woodbury with 29 active projects, Plymouth with 25, Lakeville with 23, Lake Elmo with 19, and Prior Lake with 19 active projects.
Months of new home inventory is calculated with the current total remaining units at active new home projects divided by the sum of the average sales rate for the last 12 months for all active projects.