Demand for new homes in Twin Cities hits pre-recession levels

The demand for new homes in the Twin Cities has returned to pre-recession levels, according to numbers released by the Builders Association of the Twin Cities.

The number of permits issued in the Twin Cities in May rose to 496. It's the highest number for the month since about 2009, said Meg Jaeger, the Builders Association president and owner of Mega Homes.

"Interest rates are still low, at an all-time low, and demand is picking up," Jaeger said. "The growth is continual, so from month to month in 2016, the numbers have proven to be good."

The May permits include 830 new units, with suburbs like St. Louis Park, Lakeville and Monticello seeing the most new units. So far this year, 3,261 new units have been permitted in the Twin Cities, including 428 units permitted in Minneapolis.

Jaeger said some builders are struggling to make sure that they have enough workers to meet the demand.

"We're very concerned about the labor shortage," Jaeger said. "The Builders Association along with a few other groups in the Twin Cities are working hard to welcome more young folks into the construction industry."

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