Homebuilding activity in the Twin Cities declined for the 6th consecutive year. This past year a total of 4,405 new housing units were constructed, a slight decline from the 4,405 units built in 2008. During the heyday of the real estate boom, the Metro Area peaked at over 19,000 units in 2003!
Builders did see some “encouraging” signs from the tax credit in late 2009 and are hoping this momentum continues. The expansion of the tax credit is expected to carry some momentum into early 2010, but it remains to be seen how the industry will react after the tax credit expires. If homeowners start to see more stabilization in the economy, these buyers will “get off the fence” and pursue new housing. However if the economy continues to decline, we could be in for another year of stagnant new housing development.
