The housing market in Minnesota is on the rise and home builders are getting back in the game. As housing inventory levels across the country are down, home builders are looking to feed the demand.
In April, home construction in the 13-county metro area reached a ten year peak, according to the Builders Association of the Twin Cities. The 110 percent increase in home construction was nearly impossible to predict only a few years ago when local builders were languishing, but it’s yet another sign that the housing market is recovering.
While a lack of buyer demand is no longer an issue, builders are dealing with unexpected roadblocks – namely, a labor shortage and rising material costs. Nearly 50,000 of Minnesota’s 132,000 construction jobs were lost since the 2008 housing collapse, and common sense dictates that the new demand would be easily filled with these construction workers.
However, the National Association of Home Builders explains that the length and depth of the recession forced many in the industry to move on to new opportunities or new locations. Home builders are remaining cautiously optimistic that they can maintain their high levels of current production, and thereby offer a stable job market for local construction workers in Minnesota.
"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."