Multifamily Permits Up, Single-Family Down in May

Industry Insights

Builders of large apartment complexes had their hands full in May as multifamily construction activity spiraled upward for the second consecutive month on the strength of big projects in Minneapolis and Minnetonka.

But single-family building activity continued to sputter as that sector fell into negative territory for the fourth consecutive month.

In May, builders in the 13-county metro area pulled permits for 1,943 new housing units, up 119 percent from May 2018, according to the Keystone Report. That includes 1,306 multifamily units, up 458 percent, and 637 single-family houses, down 2.7 percent.

For the year to date, the metro area has seen permits for 2,153 new single-family houses, down 6.4 percent year-over-year, and 3,811 planned multifamily units, up 50 percent, according to Keystone.

Projects permitted during the month include two big apartment buildings in Minneapolis: Lennar’s 335-unit second phase of the NordHaus development at 120 Fifth St. NE, and Big-D Construction’s 169-unit complex at 2813 Fourth St. SE.

Minnetonka issued permits for a 262-unit project at 11001 Bren Road (Dominium), and a 168-unit building at 126 Ridgedale Drive (Stevens Construction), according to Keystone.

In St. Louis Park, Frana Cos. is underway with construction of 164 apartments at 1325 Utica Ave. S.

Herb Tousley, director of real estate programs at the University of St. Thomas, believes the market is strong enough to absorb most of those new units as long as the economy continues to churn out jobs.

Click to read more of article in Finance & Commerce