Not A Good Year For Rochester Homebuilders
Rochester, MN (KROC AM News) - Rochester’s residential real estate sales may be hot but the same can’t be said for the local new home market.
Builders took out just 17 permits for new single-family homes in August and two were for townhomes. That’s the lowest August total in ten years. The August 2010 total of 15 was affected by the Great Recession. One reason for the slowdown may be the jump in wood prices, which have tripled since spring due to a lack of supply caused by increased demand and closed processing facilities.
It’s been a slow year for Rochester homebuilders as monthly totals have been in the teens five times. The year-to-date total at the end of August was 164.
New commercial construction has also slowed. The only permit in that category that was issued by the city in August was for the TownPlace Suites project at 601 2nd St SW. The permit was valued at $11.7-million.