Homebuilding off to slow start in 2023

Twin Cities homebuilding activity continues to stall as mortgage rates hold homebuyers on the sidelines. Metro builders pulled permits for 328 single-family homes in January, a 46% drop from January of last year. Multifamily construction in the Twin Cities hit a slump as well with a 53% drop in total permitted units from this time last year.

Source: U.S. Census. Housing First Minnesota collected the above permit information from available public resources.

Regional Remodeling Market Indicies, 2022 Q4

The Overall Remodeling Market Index is calculated by averaging the Current Marketing Index and the Future Market Indicators Index. Any number over 50 indicates that more remodelers view remodeling market conditions as higher than the previous quarter. Results are seasonally adjusted.

Minnesota Construction Employment (Past 5 Months)

Twin Cities Construction Employment (Past 5 Months)

Employment Update

Minnesota’s non-seasonally adjusted unemployment rate jumped to 3% in January, according to the Minnesota Department of Employment and Economic Development. This is compared to the December rate of 2%.

The national unemployment rate, however, dropped a tenth of a percentage point in December from the previous month to 3.3%. Construction employment in Minnesota fell 2.8% year-over-year.