If your phone has been a little quieter than you'd like this fall, the numbers back you up. Single-family homebuilding in the Twin Cities slowed in September, though apartment work kept the overall picture from looking too bad.
According to Housing First Minnesota's monthly report, homebuilders pulled permits for 580 single-family homes in September, down 8% from the same stretch last year. Housing First is the state's builders association, and it tracks permits through the Keystone Report, a local research firm.
All told, there were 595 permits issued for 1,107 housing units during the four comparable weeks in September. Even with the decline, the association said, September's numbers match a typical September pace over the past four years.
Apartments carried the month
Multifamily had another solid month. Developers reported 527 multifamily units, close to 50% of all construction activity for the month.
That's a swing month to month. The full data chart shows multifamily made up 58% of activity in August, when 743 units were reported, but only 4% in July and 3% in April. Through September, the region has seen 2,805 multifamily units this year, about 38% of all activity.
Total permit value for September came to about $288.1 million, up from about $269.7 million in September 2025. That figure doesn't include land or lot costs. Keystone Report compiles permits weekly after builders pick them up from city offices, covering about 70% of the municipalities in the 13-county region.
The year-to-date picture is mixed. Through September, the region has seen 4,599 permits, a little below the 4,677 at this point in 2025. But the permits cover 7,334 units, up from 6,275 a year ago, because of the bigger apartment projects. Permit value year to date is about $2.17 billion, up from about $2.08 billion.
It's still nowhere near 2022, when the region had 14,217 permitted units through September. Looking only at Septembers, this year's 1,107 units beat 2024's 705 and 2025's 919, but trail 2022's 1,631 and 2023's 1,476.
Where the work is
Lakeville led the region in September with 65 permits. St. Michael came in second with 34, Rosemount had 32, Cottage Grove had 30 and Woodbury rounded out the top five with 28.
Counting units instead of permits, Minneapolis led with 292, thanks to apartment work. Eden Prairie came next with 196, followed by Lakeville at 65, Rogers at 44 and St. Michael at 34.
For the year, Lakeville is the clear leader with 441 permits and 573 units. Rosemount is second in permits with 415, followed by Shakopee, Cottage Grove and St. Michael. Minneapolis, Plymouth, Rosemount and Edina round out the top five for units.
The builders association didn't sugarcoat the reasons for the slowdown.
"Buyers are being more deliberate in today's market, and we're beginning to see that in the pace of new home construction," said John Kraemer, the board chair of Housing First Minnesota. "Affordability and borrowing costs remain real hurdles for many buyers, but the interest in homeownership hasn't gone away."
James Vagle, the group's CEO, pointed to both short-term and long-term pressure. "High borrowing costs and economic uncertainty are adding pressure in the near term, while our persistent housing shortage continues to drive affordability challenges over the long term," he said, adding that the state needs to add homes "at a wider range of price points."
Why it matters for Contractors
For single-family subs and trade contractors, an 8% dip isn't a collapse, but it's a reminder that buyers are being picky and that builders are watching inventory closely. It's a good time to keep your bids sharp and stay close to the builders you already work for. If you work single-family, the south metro and the outer ring are still where the volume is, with Lakeville, Rosemount, Shakopee, Cottage Grove and St. Michael leading the year.
Multifamily is the bright spot, but it's lumpy. One big project can make a month and an empty month can follow. Contractors who can work both sides, a few houses for a production builder and a package on an apartment building, are in the best spot to keep crews busy through the winter. Watch Minneapolis and Eden Prairie for the larger apartment jobs, and keep an eye on next month's report to see whether September's dip turns into a trend.