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Twin Cities-area residential construction took another dip last month.

The Builders Association of the Twin Cities (BATC) reported Monday that builders were issued 380 permits to build 615 units in November. That's a 22.8 percent decline in permits and a 29 percent drop in new units from November 2006.

Despite those numbers, home builders say they're optimistic that the declines in construction activity have begun to level off.

It's been a dismal year for builders, the worst this decade. Since 2003, construction activity has dropped by more than half, and during the first 11 months of 2007, permit-and-construction activity is down more than half, as well.

So far this year 4,613 permits have been issued to build 8,384 units. That's a 33.3 percent decline in permits and a 30.1 percent decline in units.

Activity continues to be concentrated in urban condo and apartment construction. In November, attached housing, including condos, apartments and townhouses, represented 46 percent of all construction activity, a bit below the 11-month average of 51 percent. Minneapolis leads in units as suburban homebuilding has plunged. Woodbury issued permits for 441 units, followed by St. Paul with 386, Lakeville with 366, and St. Paul Park with 307. Today's Star Tribune

A local lumberyard had to close its shop because of the lowered homebuilding demand. For a while, building apartment seemed like a bad choice, but now, the tide has turned. The demand for apartments is increasing fast by those who choose to rent rather than buy.