While the new year began with a dip in permits both statewide and in the Twin Cities, builder confidence remains strong and most economists are projecting that 2019 will be similar overall to the previous year for homebuilders. Data from Housing First Minnesota’s Keystone Report, supplementing this Census Data reported here, indicates a flat start to 2019, suggesting it will echo the previous year. The challenge with this is that housing experts have called for a massive uptick in production, citing the need to build 300,000 new units by 2030, in order to address growing demand and provide pricing relief.
Through January, single-family permits were down 4.8 percent statewide and 14 percent in the Twin Cities. Rochester and Mankato saw year-over-year declines as well.