A 77-unit project in Minneapolis helped boost multi-family homes up to account for 38 percent of the total units in May.
The month of May continued a recent positive trend for residential permit statistics, showing strong gains over last year and posting substantially higher year-to-date figures.
There were 324 residential permits issued in May—up substantially from May 2009 when 187 permits were issued and a 6.6 percent increase from last month’s total of 304— according to a report released Thursday by the Builders Association of the Twin Cities (BATC).
The permitted value of new units totaled $101.3 million in May—up 87 percent from the same period last year and up 19.8 percent from April.
Year-to-date, permits rose by 182 percent, units were up by 166 percent, and value increased by 162 percent. A 77-unit project in Minneapolis helped boost multi-family homes, which accounted for 38 percent of the total units in May.
“Indicators look very promising,” Gary Aulik, BATC president, said in a statement. “Mortgage interest rates have dropped to near all-time lows, and the Minneapolis Realtors Association has reported rising home sales prices for several months.
Aulik said that these factors, combined with a dropping unemployment rate, will hopefully offset the expected drop in sales due to the ending of the Federal stimulus tax credits.
Minneapolis led the metro area in building activity for the month with 82 units permitted. Blaine followed with 33 units, Maple Grove had 30 units permitted, followed by Shakopee with 29 units.
Data released by Roseville-based BATC is compiled by local research firm Keystone Report.
BATC is an association that includes builders, remodelers, subcontractors, suppliers, and other professionals who support the building industry. Members subscribe to a defined code of ethics, and all builders agree to meet minimum performance standards for construction and business practices.
—Melissa Loth
(mloth@tcbmag.com)