Based upon numbers provided by the Builders Association of the Twin Cities (BATC), new construction unit permits have fallen 31% through August 2007 vs. last year. Units through August totaled 6,408 permitted thus far, down from 9,402 units permitted through the same time last year. In fact, in 2004 there were a total of 12,191 units permitted through August, which means we’re near half of the number of new units from just three years ago!
This is a favorable trend for our market and shows that builders continue to scale back their building from the record levels of a few years ago. While the new construction market is still weak, this dramatic reduction in new construction will help reduce inventory over the long run and sets the stage for a recovery in the future.