According to building experts in Central Minnesota, 2016 came in as a great year for single-family-home development. The building permit data confirms this claim as St. Cloud, Sartell, Sauk Rapids, St. Joseph, St. Augusta and Waite Park combined issued 270 building permits for single family homes – which is a 25 percent increase from 2015. That’s the highest number of permits for single-family-homes (in the six city area) issued in over four years.
Historically, the home construction industry hit a low point during the recession of the late 2000s – but it looks as if the industry is making a come back.
The executive director of the Central Minnesota Builders Association, Bonnie Moeller explained that the industry had to start diversifying into home renovations – but they’ve now started coming back to home construction.
“Builders that did just 100 percent remodeling are doing new construction this year,” she said.
Reasons For The Up-Tick in Home Builds
- Lack of homes on the market in these areas
- Homeowners want to upgrade and are choosing custom homes
- Affordable interest rates
- Homeowners feel more secure in their jobs and have the means to pay for new homes
- The baby boomer market
- Willingness to put more into a home because of the equity they can get out of it
The accumulative value of new homes built in the six-city area totals to $66.2 million, which is an increase of $27.3 million from 2015. In 2016, residents spent $23.8 million in St. Cloud alone.
2017 is set up to be a strong year for new single-family-home construction. The year has started off strong and experts agree they expect it to continue to build into the summer months when the industry usually picks up.