There has been some activity in the local home building industry in 2009. As we mentioned earlier in this blog, residential building permits issued throughout the month of November 2009 were up 28% from the same month of 2008. Well, 89% more residential permits were issued in December 2009 than in the same month of the previous year.

With the vast increase in permits for the last two months of 2009, Twin Cities home builders are much more optimistic about the industry’s recovery. Though progress may move slowly yet during these winter months, it could pick up some speed as 2010 moves forward.

According to the Keystone Report from the Builders Association of the Twin Cities, which tracks permit activity in the 13-county metro area, residential construction in the Twin Cities metro declined for the sixth year in a row in 2009 as measured by planned housing units. Metro area cities approved 2,599 permits for 4,405 new housing units, a much lower number compared to the peak of 11,472 permits for 19,000 units in 2003.

Builders are encouraged, however, by 2009’s strong finish. In just November and December of 2009, the Twin Cities saw 523 homebuilding permits for 997 housing units, up from 365 and 644 in the same two months of 2008. For those keeping score, there were 250 permits issued in December for 423 units.

Shakopee was the leader of the pack when it came to issuing metropolitan-area building permits and the number of units approved in 2009. The city issued 304 permits for the year and approved a total of 328 new units. More than 92% of Shakopee’s new construction was single-family.

Blaine was second in the number of permits issued in 2009 with 203 (including several in the Legacy Creek development),  followed by Maple Grove with 197, Woodbury at 181, and Lakeville with 140. For the number of units approved, Blaine again was second in the Twin Cities area with 274, followed by Minneapolis with 274, Woodbury with 245, and Maple Grove with 232.

An extension of the federal homebuyer tax credit is possibly contributing to the improved numbers. Since home buyers are now eligible for up to a $6,500 tax credit through April, builders are hopeful about the first quarter of 2010.