Compared to December of 2009, Twin Cities residential construction activity fell the last month of 2010. For the full year, though, 2010 bested 2009 for Twin Cities home builders by 13% for permits and 27% for units .
The worst year for local residential construction in over a decade occurred in 2009, according to data from the Builders Association of the Twin Cities. Though the housing market remains depressed, construction firms were issued 2,942 permits to build 5,611 residential units in the Twin Cities metro area during 2010. It represents the first increase in seven years.
While the increase in construction activity is a positive sign for the battered construction industry, there hasn’t been a corresponding increase in home sales. About half of all new units built in the Twin Cities area in 2010 were part of multifamily projects, mostly rental apartments. The new jobs that the projects provide have been a welcome relief, however.
More units were built in Minneapolis than anywhere else last year. The city issued builders 47 permits to build 810 units, including several projects with more than 100 apartments.