The Twin Cities are another market set to drop off rather sharply this year.
The overall market is set to decrease by just over 12% relative to 2021 levels, following a 3.3% growth relative to the year prior. We expect this to continue through at least 2024, settling at a smaller level than before the pandemic. This is expected to be most pronounced in the residential sector, which is set to decline by 22% this year. This is partly because residential volume increased so dramatically during 2021 that a return to normal looks like a serious decline.
To address the housing shortage, the U.S. Department of Housing and Urban Development reports that there are more than 21,000 new projects under construction in the area – more than at any point of the last twenty years. These should provide steady volume for the next few years and offset declines in other sectors.