Residential construction activity in the Twin Cities opened the year on a high note, with measurable gains across both single-family and multifamily sectors — signaling renewed momentum heading into the 2026 building season.
According to new data from the Keystone Report, builders pulled 453 single-family home permits in January, a 9% year-over-year increase. Multifamily construction saw an even sharper uptick, with 313 units under construction, a 47% increase from January 2025. Multifamily development accounted for 41% of total residential construction activity during the month.
“The increase in new construction activity in January reflects strength on the demand side of the market,” said John Kraemer, the association’s 2026 board chair. “Even amid broader economic headwinds, buyers are remaining active and engaged.”
Across the four comparable weeks in January, 459 permits were issued for a total of 766 housing units, marking the strongest January start for new construction since 2022.
“An increase in activity is encouraging,” said James Vagle, CEO of Housing First Minnesota. “However, Minnesota remains significantly undersupplied — particularly at lower price points. Sustaining this momentum will be critical as we move into the spring housing market.”
Permit leaders: Outer-ring suburbs continue to drive growth
January permit activity was concentrated largely in growing suburban markets:
- Lakeville led all municipalities with 54 permits
- Rosemount followed with 39 permits
- Otsego recorded 30 permits
- Lino Lakes posted 28 permits
- St. Michael rounded out the top five with 21 permits
On a unit-count basis — reflecting larger multifamily projects — Edina topped the list with 292 permitted units, driven by concentrated multifamily development. Lakeville followed with 75 units, while Rosemount, Otsego, and Lino Lakes also ranked among the leaders in total authorized units.