Home construction heats up in metro as inventory shortage lingers

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With the number of homes on the market at a 10-year low in the Twin Cities, more house hunters are turning to new home construction, the Star Tribune reports.

The number of new single-family houses planned for the metro surged nearly 27 percent over April 2012, according to a news release from the Builders Association of the Twin Cities. Two multi-unit apartment buildings in Minneapolis pushed planned units up more than 100 percent.

“As the market has steadily improved, our members are optimistic about potential sales and report steady demand,” Pamela Belz, Builders Association of the Twin Cities 2013 president and developer with Senior Housing Partners, said in a statement. “However we are mindful of areas of concern such as costs of materials, labor, regulation, and a declining inventory of attractively priced and located lots.”

Click here, for more data on building activity in April 2013.

According to figures released earlier this month by the Minneapolis and St. Paul Realtor’s Associations, the number of homes on the market in the 13-county metro area dropped more than 30 percent to 12,615 in March.

Meanwhile, the median sales price in the Twin Cities last month was $176,000, an increase of 17.4 percent.

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