Fluctuating interest rates and overall economic uncertainty are continuing to impact the housing market. Homebuilders in the Twin Cities are also feeling the slowdown. In the month of October, permits for new single-family homes were down 54% from the previous year. Overall affordability also continues to be a hurdle for potential buyers. The Twin Cities median home price in October was $356,000.
SOURCE: U.S. CENSUS. Housing First Minnesota collected the above permit information from available public resources.
Regional Remodeling Market Indices, 2022 Q3
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)
Source: DEED
Twin Cities Construction Employment (Past 5 Months)
Source: DEED
Employment Update
Minnesota’s adjusted unemployment rate ticked up slightly to 2.1% in October, according to the Minnesota Department of Employment and Economic Development. This is compared to the September rate of 2%. The national unemployment rate also increased slightly from 3.5% in September to 3.7% in October.
Construction employment in Minnesota grew 2.1% year-over-year in October. This is equivalent to 2,916 being added throughout the industry.