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Multifamily Projects on Rise in Twin Cities

MINNEAPOLIS-Rising land costs, which already account for about 25% of a single-family home's price, is leading to higher-density multifamily housing, says this year's president of the Builders Association of the Twin Cities.

By Jim McCartney | Updated on May 13, 2002

MINNEAPOLIS-The Twin Cities’ residential sector remains strong and reflects a growing percentage of multifamily housing units, according to new permit statistics compiled by the Builders Association of the Twin Cities. Through the 1990s and in 2000, the ratio of planned units to permits has ranged from 1.20 to 1.43. Last year, that ratio grew to 1.53, and so far this year the ratio has climbed to an average of 1.76 plannedunits/permit.

“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.

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