MINNEAPOLIMEDIA NEWS | Coon Rapids Report Shows Building Activity Rising as Employment and Home Sales Weaken

COON RAPIDS, MN (July 31, 2026). Construction activity accelerated in Coon Rapids during the second quarter of 2026, but the city experienced a decline in employment and continued slowing in its housing market, according to a new municipal economic development report.

The July 2026 Quarterly Economic Development Report, released Thursday, examines development, employment, wages and housing conditions using city permit records and data from the Minnesota Department of Employment and Economic Development and Minneapolis Area Realtors.

Coon Rapids issued 2,140 building permits during the second quarter, up from 1,531 during the same period in 2025. That represents an increase of nearly 40%.

The total reported valuation of those permits remained relatively stable, declining from approximately $38.1 million in the second quarter of 2025 to $37.6 million this year.

Thirteen permits were issued for new housing units, compared with two during the same quarter last year. The city also issued 12 permits for new commercial buildings after recording none in the second quarter of 2025.

The highest-valued permit was a $15 million addition to the RMS manufacturing facility at 8600 Evergreen Boulevard. Other major permits included a $703,392 equipment replacement and modification project at Mercy Hospital, a $523,582 window replacement project at Epiphany Assisted Living and a $479,071 interior remodeling project at Midwest Radiology.

The report also identifies several major development projects moving through the city approval process.

River North Industrial Center received site-plan approval for a proposed 147,000-square-foot industrial building on a 16.5-acre vacant property near 9570 Norway Street.

MarNicArt Homes received plat approval for an eight-unit, single-family residential development at 2831 113th Avenue, north of the Family Center Mall. The property previously housed Fire Station 3, which was demolished in late 2025.

Cardinal Crest Homes received approval for a 14-unit, single-family development at 9050 East River Road near Adams Elementary School. The development will include a homeowners association and is expected to be oriented toward older residents.

A separate 29-home development has been approved on the southernmost 10 acres of the Balfany Sod Farms property near Shenandoah Boulevard and 123rd Lane Northwest. Plans include a trail connection to Cardinal Woods Park.

The construction gains were accompanied by more mixed employment figures.

Total employment in Coon Rapids declined from 24,927 jobs during the first quarter of 2025 to 24,608 during the first quarter of 2026, a decrease of 319 jobs, or 1.3%.

Employment in trade, transportation and utilities fell 7.5%, from 5,844 to 5,405 jobs. Leisure and hospitality employment declined 4.3%, while education and health services recorded a smaller decline of 0.7%.

Professional and business services produced the strongest employment growth, increasing 7.1% from 3,047 to 3,264 jobs. Manufacturing employment increased 1.3%, while employment in other services rose 4.2%.

The city’s information sector recorded the steepest percentage decline, falling from 112 jobs to 57. The report said the reduction could reflect the loss of a single large employer within that relatively small sector.

Despite the overall employment decline, average weekly wages in Coon Rapids increased 7%, rising from $1,275 to $1,364. By comparison, average weekly wages statewide increased 3.9% to $1,666.

Education and health services remained the city’s largest employment sector, with 7,531 jobs and average weekly wages of $1,838.

Housing data indicate that Coon Rapids homes are remaining on the market longer, while the number of completed sales continues to decline.

The median sale price for a single-family home remained near $340,000, where it has stayed since August 2025. The city said the supply of homes appeared to peak or level off during May and June, earlier than normally expected in the seasonal housing cycle.

The number of closed single-family home sales has begun declining again after leveling off during the fall of 2023, continuing a longer-term decrease that began in early 2022.

Taken together, the report depicts a city with significant construction and development activity but a more complicated underlying economy. New commercial projects, residential developments and rising wages provide signs of investment, while job losses, longer home-selling periods and declining sales point to areas that city leaders and residents will need to watch.

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