The cost of renting or buying a home in the Twin Cities has been on the rise for years. The median home price is currently at 325K in Minneapolis, which is a persistent 2 percent growth year over year, according to Realtor. Here are some of the factors influencing home prices in Minneapolis.
Growing Job Market
A 2016 – 2026 Minnesota employment projections predicted an increase of up to 181,600 jobs. This prediction seems viable as we see an increase of thousands of jobs each year in the Minneapolis St. Paul metro area. An increase in jobs means more people will move into the area. This has led to increased demand for housing and has ultimately driven up prices.
Limited New Construction
While there are new construction projects in the Twin Cities, the number of new homes being built has not kept up with population growth. The combination of a strong job market and low-interest rates has led to increased demand for housing, which has outpaced the number of new homes being built. This imbalance between supply and demand is one of the main reasons prices continue to rise.
Other Factors
Other factors like the increasing costs of rent and a desire for more space have also contributed to the rising prices of homes in the Twin Cities.
What Does This Mean for Homebuyers and Sellers?
Rising home prices can be a good thing or a bad thing, depending on your perspective. If you are looking to buy a home, it may be challenging to find an affordable one. However, if you already own a home, your home will likely increase in value.
If you are thinking about selling your home, now may be a good time to do so. Prices are expected to continue to rise in the coming months, so you could get a good return on your investment.
If you are tired of renting and feel like you can afford a home, it may be a good time to speak to your local real estate agent.
Need Help Finding a Home in the Twin Cities?
Whether you’re a first-time homebuyer or looking to move up to a larger home, we can help if you want to buy a home in the Twin Cities. Call us today at (612) 406-6020 to discuss your exact needs.