Core Cities Leading New Residential Construction

[Twin Cities]

Finance & Commerce article on core cities new housing renaissance.

Multifamily housing projects abound in core cities

Multifamily housing has been driving the residential market in Minneapolis and St. Paul in recent years, despite disappearing state and federal funding and a slow economy.

By Brian Johnson/F&C Staff writer

February 19, 2004

Question: Which metro area city authorized construction for the most new homes in the first three quarters of 2003? Blaine? Shakopee? Woodbury? Farmington?

Answer: None of the above.

According to the Met Council, Minneapolis issued building permits for 952 ownership and rental housing units (new construction) from January through September of last year to lead the seven-county metro area. Shakopee (868) and St. Paul (629) were second and third.

While growing cities such as Blaine and Farmington continue to set the pace for the construction of single-family dwellings, Minneapolis and St. Paul are building or plan to build an abundance of multifamily homes for both renters and buyers.

Current projects such as the $90 million Grant Park tower (288 condominiums, 39 townhouses in a 27-story tower at Fifth Avenue and 10th Street) and the Bottineau Commons East (119 new rental units at 18th and University avenues northeast) are keeping builders busy in Minneapolis.

New projects in 2004, meanwhile, include a 51-unit mixed-income senior housing project at 19th and Central, a 52-unit supportive housing facility in the former St. Barnabas Hospital building, and a 24-unit mixed-income rental housing project on Lyndale Avenue.

Overall in 2004, Minneapolis hopes to complete work on 1,390 homes this year (815 new and 575 rehab), including 715 affordable units. Over the last three years, nearly 3,700 housing units have been built or rehabbed in the city, including 1,869 in 2003, according to city officials.

Cynthia Lee, manager of multifamily housing development for the city of Minneapolis, said it

[Allan]

Great news for the twin cities! It's nice to see more people moving back to the core of the cities.