Residential construction in the Twin Cities continued its upward momentum in March, with the metro posting another strong month of activity as builders head deeper into the spring selling season.
According to the latest data from Housing First Minnesota’s Keystone Report, single-family permitting rose 66% year over year, with builders pulling 419 permits for new single-family homes during the month. Multifamily activity also contributed to overall gains, with 177 units reported under construction, accounting for 30% of total residential construction in March.
Across the four comparable weeks in March, the metro recorded 422 permits for 596 total housing units, underscoring continued strength in the region’s new-home pipeline during one of the industry’s most important seasonal windows.
“The strong interest we are seeing during the first few weekends of the Spring Parade of Homes is very encouraging,” said John Kraemer, board chair of Housing First Minnesota. “As we look ahead to the remainder of the spring housing market, it will be crucial for homebuilders to keep at our current pace to meet this strong demand.”
For builders and developers, March’s numbers reinforce what many are already seeing on the ground: consumer demand remains active despite ongoing affordability challenges and broader economic uncertainty.
“The spring season is an important time for the housing market. Growth in new construction activity and strong traffic during the Parade of Homes are good indicators,” said James Vagle, CEO of Housing First Minnesota. “However, our market is still vastly undersupplied, especially at the starter home level. The legislature has an opportunity to bring these types of homes back to our market — it’s time to act.”
Suburban Markets Continue to Lead Permit Activity
As in recent months, suburban communities continued to drive the bulk of single-family permitting activity in March.
- Rosemount led the metro with 53 permits
- Lakeville followed with 38 permits
- Shakopee recorded 27 permits
- Corcoran and Farmington rounded out the top five with 21 permits each
On a unit basis, which more closely reflects multifamily development concentration, Rogers topped the list with 106 permitted units, followed by:
- St. Louis Park with 83 units
- Rosemount with 53 units
- Lakeville with 38 units
- Shakopee with 27 units