Residential construction in Minnesota shows growth

On Sept. 18, the U.S. Department of Housing and Urban Development (HUD) released the most recent numbers for residential construction in August 2013. Overall, numbers nationwide are looking good, a positive indicator of a recovering economy. There is also good news for residential construction in Minnesota as well.

Here’s the breakdown of the report:

Building permits:
Privately-owned housing units authorized by building permits in August were at a seasonally adjusted annual rate of 918,000. This is 11 percent above the August 2012 estimate of 827,000.

Housing starts:
Privately-owned housing starts in August were at a seasonally adjusted annual rate of 891,000.  This is 19 percent above the August 2012 rate.

Housing completions:
Privately-owned housing completions in August were at a seasonally adjusted annual rate of 769,000.  This is 12.1 percent above the August 2012 rate of 686,000.

Nationally, residential building is going strong, and at Braden, we’ve seen a strong surge in new residential construction in Minnesota.

A recent article in the Star Tribune titled “Prices of new Twin Cities metro homes accelerate” stresses the current construction boom in Minneapolis and the surrounding suburbs. This upswing in construction is causing new home prices to rise – the article states the average price per square foot for new homes listed through the Multiple Listing Service is $150, a four-year high.

 

As the line for building permits in Minnesota lengthens and many new housing plans shape up, we’ll see how the numbers evolve. Of course summer is the ideal time for building, but if you want to start planning a new residential project now, we’d love to discuss your options for building in fall and winter. Please fill out the “Contact Us” section in the top right corner of the website and we’ll be in touch soon.