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Twin Cities Multifamily Construction Drops

MINNEAPOLIS-Multifamily units account for 43% of the 943 units planned, according to the Builders Association of the Twin Cities. January's 610 permits is down 23% from January 2004.

By Jim McCartney | Updated on February 08, 2005

MINNEAPOLIS-New housing starts are down from the hectic pace over the last three years, although the overall market condition remains healthy, according to a new survey. Multifamily planned units accounted for 43% of the units, or 402 of the 943 units in the month, according to the Builders Association of the Twin Cities.

This compares to multifamily units running at 53% for 2004, 49% in 2003, and 44% in 2002, 41.5% in 2001, and 37.5% in 2000. “The past several years have been incredibly active ones for local builders,” says Doug Nelson, president of the Builders Association of the Twin Cities and owner of New Spaces. “And it’s very difficult to make any judgments about the state of the market based upon one month.”

Nelson says his association expects this year to be somewhat slower than past years, especially as interest rates rise, but the industry still expects to be quite busy. In January, there were a total of 610 permits, 23% lower than the 788 permits issued in January last year. The 943 planned units, which totaled in value of $192 million, were 21% behind the comparable numbers a year ago.

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