December Housing Starts Surge: What It Means for Buyers & Sellers in Western WI and the Twin Cities
As 2024 came to a close, the U.S. housing market experienced a notable shift—a 15.8% increase in housing starts in December, according to HUD and the U.S. Census Bureau. That’s the highest level of new home construction since February 2024, and it’s especially important for buyers and sellers here in Western Wisconsin and the Twin Cities metro.
Whether you’re buying, selling, or just keeping tabs on the market, here's how this late-year surge could shape your 2025 real estate plans.
What Are Housing Starts—and Why Should You Care?
“Housing starts” refer to the beginning phase of residential construction. In December 2024, the market hit an annualized rate of 1.5 million new units, a strong rebound after months of market uncertainty.
Here’s a quick breakdown:
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Single-family starts rose by 3.3%, totaling over 1.05 million homes.
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Multifamily construction (apartments and condos) soared by 61.5%.
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For all of 2024, housing starts were down 3.9% overall, but December’s spike signals renewed momentum heading into 2025.
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What This Means for Buyers in Hudson & the Twin Cities
If you’re planning to buy a home in Hudson, WI or the Twin Cities, this construction boom could bring some welcome news.
More Homes to Choose From
The increase in new construction means more inventory could be coming this year. That may ease the intense competition and bidding wars we’ve seen recently.
Potential for Better Pricing
More supply can help slow down price increases, especially in:
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Suburban Twin Cities (like Woodbury, Eagan, or Maple Grove)
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Growing Western WI towns (like Hudson, River Falls, or New Richmond)
More Rental and Investment Opportunities
With a major uptick in multifamily builds, expect more apartments and condos to hit the market—great for:
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Renters seeking relief from rising prices
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Investors eyeing income properties in Eau Claire, Minneapolis, and St. Paul
A Shift Toward New Construction
Builders are focusing on single-family homes to meet demand. If you're looking to buy, you may be touring more brand-new homes than ever before. These offer:
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Modern layouts and energy efficiency
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Builder warranties
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Fewer immediate repair costs
What Sellers in Western WI & the Twin Cities Should Know
Thinking of selling your home in 2025? The new construction boom can impact your strategy.
More Competition From New Builds
With shiny new homes entering the market, sellers of existing homes need to be competitive by:
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Pricing strategically
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Highlighting charm, location, and updates
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Offering incentives like flexible closing dates or rate buy-downs
Single-Family Homes Still in Demand
If you're selling a single-family home, especially in established areas like Hudson or Stillwater, demand remains strong—especially among families looking to move before the next school year.
Timing Your Sale Matters
Listing your home before new builds flood the spring market can help you:
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Stand out
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Sell faster
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Capture serious buyers while inventory is still relatively low
What to Expect in 2025
Looking forward, we expect continued modest growth in single-family construction, along with stabilization in multifamily housing. Builders are targeting affordability and efficiency, which may lead to:
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A greater variety of entry-level homes
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Renewed buyer activity in secondary markets like Hudson or St. Croix County
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Balanced markets with steady—but not explosive—price growth
Final Thoughts: What It Means for Your Next Move
Whether you're considering moving to Hudson, investing in the Twin Cities, or just weighing your options, December’s housing start surge offers both opportunity and caution.
For Buyers:
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More inventory and choices
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Potential price moderation
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New construction options with modern perks
For Sellers:
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Rising competition from new homes
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Still-strong demand for well-located properties
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The importance of timing and presentation
Ready to Make a Move in 2025?
The market is shifting, and whether you’re buying, selling, or just exploring Hudson WI real estate, now is a great time to get ahead of the spring rush.
Let’s chat about your plans—I’m here to help you navigate the changing landscape and make the most of the opportunities ahead.
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Ready to make a move in Hudson or the surrounding area?
Let’s talk! Contact The Johnson Group at Coldwell Banker Realty today to start your journey.
📞 Call us today at 651-333-7656
🌐 Or visit www.johnsonhomegroup.com
📍 Serving Hudson, WI and the greater Twin Cities metro area
Written by Mark Johnson, REALTOR® and owner of The Johnson Group at Coldwell Banker Realty. With over 20 years of experience helping clients across Hudson, WI and the Twin Cities, Mark is passionate about delivering expert real estate guidance with a personal touch.
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