MetroStudy Report - Minneapolis, MN– January 23, 2012 - The Twin Cities is one of the healthier markets in the country, with strong job growth, low unemployment, and healthy housing supplies, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

The Twin Cities economy added almost 17,000 new jobs in 2011. In addition, the Twin Cities unemployment rate stands at around 5.1%, 1.5% lower than this time last year and 3% lower than the national average. “2012 will likely see continued job growth across the metro area as the economy improves and consumer confidence increases,” said Ryan Jones, director of Metrostudy’s Twin Cities division.

The Twin Cities area started 3,189 homes in 2011, an annual start increase of 8.8% compared to 3Q11. “The new home market is starting to trend upward with back-to-back annual increases in new home demand,” said Jones. However, 4Q11 marked the fifth consecutive quarter where closings came in below 1,000.

New home supplies remain healthy at 6.9 months, despite all-time low annual closing numbers. “Ideally, we would like to see new home closings pick up momentum as builders start building more in the spring, helping to offset the potential rise in inventory,” said Jones.

“In the face of a challenging start to the year, 2011 finished up much stronger and has some momentum going into the new year. Builders continue to acquire about new pieces and are introducing new communities at a healthy pace. Quality traffic counts are up and conversion rates are improving,” said Jones.

“While new home activity is still hovering at painfully low levels, the market is poised for more consistent expansion in 2012,” said Jones. “We project a slight increase in 2012, somewhere between 10%-15% that could quickly gain momentum thereafter, potentially doubling its pace over the following three years.”

For information contact:
Ryan Jones @ 952.960.4825
email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it