New home building continues rise in metro
New home construction in the Twin Cities is showing continued strength.
For the first five months of this year, local contractors have taken out permits to build 26 percent more homes and apartments than they had during the same period last year.
The numbers: Twin Cities building activity
So far this year builders sought permits for nearly 3,300 new housing units. Single family homes account for somewhat more than half of the planned construction.
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"Permit numbers are up to the highest level since 2007," said Pamela Belz, president of the Builders Association of the Twin Cities. "We do remain a little bit cautious because we've got some challenges on the horizon with some labor shortages and rising material costs. But we are just really very encouraged to see interest rates still low."
Local planned housing construction is on pace to hit about 10,000 units this year. But home building remains far below the peak seen during the housing boom.
"Having come through the experience that we have over the last four or five years, we have memories. And so we're cautious. But all the signs point positively," said David Siegel, executive director of the Builders Association of the Twin Cities.
But also Siegel said home building remains well below the Metropolitan Council's estimate for the region's new housing needs.