Dive Brief:
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Minnesota homebuilders rushed to secure building permits and break ground on single-family houses in January and February before new codes requiring greater energy efficiency and sprinkler systems took effect.
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In Minneapolis-St. Paul, the number of building permits in February was up 47% over the same month last year, according to the Builders Association of the Twin Cities.
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The association has estimated that an amended energy code that started in February could add up to $10,000 to the cost of a new home. In addition, builders have argued that a requirement for fire sprinklers in larger homes could add another $10,000 per home.
Dive Insight:
Combined with a statewide slowdown in nonresidential construction and in suburban homebuilding, the cost of the new regulations could stifle the industry, Chris Contreras, the association’s president, told The Star Tribune.
In fact, Minnesota has lost construction jobs over the past few months as the industry nationwide has added more than contractors can fill.