"As land costs have escalated sharply in the last several years, higher-density housing becomes one of the few ways builders can provide moderately-priced homes," says Craig Plekkenpol, 2002 president of the Builders Association of the Twin Cities and president of Plekkenpol Builders.
In April 2002, a total of 871 permits were issued for 1,464 planned units at a value of $226 million. In permits, this is 8% behind the 945 permits in 2001; 30% behind the 1,237 permits in 2000; and 20% behind the 1,083 permits in 1999. But in planned units, this April ran 16% ahead of the 1,261 units in 2001; 20% behind the 1,815 units in 2000 and 4% ahead of 1999's 1,414 units.
Year-to-date figures show permits continue to lag the last three years; while planned units were higher in every year since 1997 except for 2000. So far in 2002, a total of 2,850 permits were issued for 5,028 planned units at a value of $771.3 million.
If the Metropolitan Council is correct in their growth projections, Plekkenpol says, "our industry needs to boost housing production by an additional 4,000 units/year more than we've averaged over the past decade."
The cities issuing the most permits in April are Lakeville, 46 permits, Blaine and St. Michael, 42, Maple Grove, 32, and Eden Prairie and Prior Lake, 28.
For planned units Plymouth had 228, Blaine, 69; Lakeville, 60; Eden Prairie, 54; and Chaska, 51.
The Builders Association of the Twin Cities hired Keystone Report, a local research firm, to maintain a database with information about new residential construction (for-sale and rental) permits around the metropolitan area.
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