Minneapolis issued 12,100 construction building permits in 2013, which had a combined value of $1.21 billion, a new annual record for the city.
This is the second year in a row the city has seen more than $1 billion in construction approved, up from $1.12 billion in 2012. In 2011, construction projects were valued at the below average total of $752 million, which was up from a huge drop in 2010, when the projects were valued at just over half a million dollars.
According to the city, the recent construction boom is primarily due to rapid growth in rental housing. More than 3,500 permits for residential units—family homes, rental apartments, and new condos—were issued in 2013, up from about 3,300 in 2012 and a huge jump from about 600 units in 2011. To learn more about what’s driving the billion-dollar apartment development market in the Twin Cities, read Twin Cities Business’ October cover story.
“Important national trends are playing out to our advantage in Minneapolis,” Jeremy Hanson Willis, executive director of the city’s department of community planning and economic development, said in a statement. “As more people are choosing to live in thriving urban neighborhoods, Minneapolis is well-positioned to continue this growth in housing and population.”
The top five construction projects to receive permits in 2013 were all housing projects:
- Pillsbury A-Mill Apartment Building Complex, 315 Main Street (valued at $68,104,757)
- 26-Story Apartment Building, 465 Nicollet Mall ($68,060,970)
- UTEC Apartment Building Complex, 1313 5th Street ($59,944,761)
- Stonebridge Condominium, 1120 2nd Street South ($48,398,889)
- Six-Story Apartment Building, 2828 Dupont Avenue ($36,084,887)
“This great news is more proof that Minneapolis is in full recovery and growing faster than most peer cities,” Minneapolis’ newly appointed mayor, Betsy Hodges, said in a statement.
This article is reprinted in partnership with Twin Cities Business.