Minneapolis, MN

The Twin Cities’ population has seen steady growth over the last 50 years with no signs of slowing down.

To keep housing prices from rising too much, Minneapolis has enacted ambitious land-use reform that requires multifamily projects to be allowed wherever single-family projects are. There are more than 21,000 new projects under development in the area – more than at any point since the 1990s. Whether this will keep housing affordable and commute times short remains to be seen, although initial reports are promising. Even so, the last few years have proven to be overly active.

The construction market here is set to decline this year, as much of the pandemic boom in construction wears off. This is different from many other markets across the country: every sector is predicted to decline relative to last year. This doesn’t seem to have a single cause but looks more like a return-to-form from 2020 and 2021. The labor market has followed suit, and trade employment remains roughly where it was before the pandemic. This should decrease labor costs before workers begin to move to nearby cities to find better wages.

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* Other structures include religious buildings, amusement, government communications, and public recreation projects.
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