Single-family construction in the Twin Cities area increased while multifamily construction dropped, according to statistics compiled by the Builders Association of the Twin Cities (BATC). According to the Keystone Report, there were 272 permits issued for a total of 352 units during four weeks last month. That compared with 228 permits for a total of 604 units in September 2010. Maple Grove had the most permitted units, with 44, followed by Plymouth and Forest Lake. Year-to-date, Blaine had the most units, at 263, followed by Bloomington and Minneapolis.

The BATC reports the number of permits issued last month was more than any September since 2007. For units, however, it was the slowest month in more than five years. That’s actually a good sign for home builders because it means more single-family homes are being constructed, versus apartment complexes.

“The permits are up. They’re going in the right direction,” said Rich Riemersma, president of the Builders Association of the Twin Cities and co-owner of Imperial Homes. “But it’s a more gradual return to the norm than we were hoping for.”

For the year-to-date, though, 2011 new construction is below last year’s level. Through September, 2,161 permits were issued for a total of 3,141 units, while by this time last year 2,285 permits had been issued for 3,935 units.

On a related note, another type of construction happening in the Twin Cities right now is homeowners who have decided to stay in their homes are moving ahead with remodeling projects. Though in some cases they are scaling back the scope of their home improvement projects and spending less, other people are getting such good deals on houses they can afford to fix them up or make changes. The average remodeling permit estimate has dropped, though, to $1,600, down from more than $2,000 in 2010.

Are you thinking about buying a new house? How about remodeling your current home?

In June, more permits were issued than in any other month in the last year, and planned units were up 13 percent from June 2010. There were 260 permits for a total of 385 units during four weeks in the month of June. Year-to-date through June, there were 1,325 permits issued for a total of 1,925 units.

Blaine was the leader, with 139 permits, followed by Maple Grove with 106, Woodbury with 94, Plymouth with 79 and Shakopee with 58.

“This year has been challenging for the local community,” said BATC President Rich Riemersma. “Bad weather, including the devastating tornadoes in North Minneapolis, uncertain economic news, and distressed property sales dragging local sales prices down have all contributed to lackluster home sales. New construction is still down about 23% from last year, and just as we’re beginning to catch up.

“The government shut down is something we just don’t need.”

While most construction work can continue, electrical inspections for new or remodeled homes will be put on hold throughout the state government shutdown.

We offer the following tips and advice to help in that decision-making process.

1. Make a list of qualities you want in a general contractor. Then pick someone with those qualities. Some examples to consider include honesty, dependability, knowledgeable, trust-worthy, skilled, helpful and good at communicating. This will be someone literally building the foundation for your future. It will also be someone with whom you will be working for a while, so it makes sense to find a contractor with a compatible attitude.
2. Get references. Do not just choose the first new home construction company that pops up in an internet search. Though a company’s website is a good place to compare and assess their experience and expertise, browsing the internet won’t give a complete idea of the kind of service they provide. Ask some friends and acquaintances if they personally know of any designers or contractors in the area, especially if any of them have already had to opportunity to build a new home or are familiar with other individuals who have.
3. Do the research. Look for reviews of past customers. If possible, try to arrange to meet with some of their customers, maybe even in the homes the contractor built. A first-hand account like this give deep insight as to whether the new home construction company you are considering is worthy of being hired.
4. Approve their floor plans. Many existing homes have useless rooms or square footage. Modern building techniques and uses of space are one of the appeals of new home construction. Ensure the contractor’s floor plans are geared toward maximizing usable space, minimizing energy costs and simplifying maintenance needs.
5. Check their work. A common complaint from people who have had new homes built has been careless workmanship. Confirm with your references that the contractor’s work was superior. During the construction phase, visit the work-site often to ensure that your wishes are being carried out. With electricians, plumbers, laborers and others, building your dream home is a huge task. Good communication can go far in preventing expensive mistakes.
6. Consider their schedule. Don’t choose a contractor embarking on too many projects at the same time you approach them with your building needs. Because this is your dream home, you want a crew that has can focus its attention on prioritizing the details of your home. A good approach is to choose a Twin Cities area general contractor instead of a larger, regional residential builder. A smaller, local construction company will likely have fewer projects than the larger ones, meaning they can devote more attention to yours.
7. Estimate their costs. Ask for price quotes from a few of the most reliable residential construction companies in the Twin Cities. Compare the estimates and the services that they provide. If their offer is greater than your budget, ask if there are ways they can cut down on costs without sacrificing your dream – or the quality of the materials used during construction. A well-established new home construction company should have a network of suppliers that can provide alternative materials that are less costly.
8. Get it in writing. Getting an agreement in writing is essential for the well-being of both the contractor and the home buyer. A homeowner should hire the services of an attorney to review any contractual agreements before they sign anything. Any reputable builder will expect you to do this.

Building a home is one of the most significant events to occur in many people’s lives. By following these steps toward finding the right contractor to build your dream home, you can increase the likelihood of a happily ever after when the keys are handed over.

Residential construction in the Twin Cities remains lethargic, according to the Builders Association of the Twin Cities’ (BATC) Keystone Report. There were 203 permits issued in April for a total of 230 units, a decline of 33% and 38% respectively from April of 2010. Those are the lowest numbers for April local residential construction in at least the past five years, according to the BATC.

Year-to-date it is a similar story. During the first four months, there have been 758 permits issued for a total of 851 units. That is lower than the number of permitted units during the same time period of any for the last five years.

BATC President Rich Riemersma said the organization expected construction to be down in the first quarter of 2011 compared to 2010 due to the frenzy of interest last spring’s federal homebuyer tax credits generated. There is no such incentive now.

“But while new housing nationally is expected to remain down, we have hopes that the Twin Cities will catch up and surpass last year in single-family construction,” Riemersma said.

Maple Grove saw the most building activity in April with 28 permitted units. Blaine followed closely with 22 units, trailed by Plymouth with 16, Minneapolis with 15 and Woodbury with 13.

Source: Local Residential Construction Still Struggling
Source: A bootless month for builders

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Blaine Haven | 901 104th Lane NE | Front Exterior

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