First of all, let's find out how is Covid-19 pandemic is affecting the real estate activity in the Minneapolis housing market. The Twin Cities metro area includes more than three and a half million people, making it the sixteenth largest metro area in the U.S. and third largest in the Midwest. Coming off of the roller-coaster ride that was 2020, the 2021 housing market could hold a few surprises of its own. My goal in this article is to shatter some misconceptions and clear the way for a reliable 2020 market forecast. The median rent price in Minneapolis is $1,795, which is higher than the Minneapolis-St. Paul-Bloomington Metro median of $1,699. Wisconsin’s tax rate is in this same range, but their higher average property values mean they pay far more in property taxes than those in the cheaper Minneapolis real estate market. Over the last thirty years, it is up to 205%. With the supply of inventory tight and buyer demand high, Minneapolis houses for sale are flying off the market. Pending Sales were down 13.9 percent to 5,828. Uptown Minneapolis, with an average rent of $1,572. This is greater than the Minneapolis-St. Paul-Bloomington Metro value of 0.8 and also greater than the national value of 1.2. This is why the Minneapolis housing market is expected to see home price appreciation this year despite the ongoing pandemic. With a population of roughly 3.5 million, Minneapolis is the 16th largest metropolis in the United States. https://www.realtytrac.com/statsandtrends/mn/hennepin-county/minneapolis, Job Growth Under potential listings, there are about 27 Foreclosed and 161 Pre-Foreclosure homes. With 2020 being, theoretically, in the middle of a boom, there are still 4 years for residential construction to surge. It is one of Minneapolis' most diverse neighborhoods. https://www.theladders.com/career-advice/these-are-the-15-cities-with-the-most-100k-jobs-in-december-2018 It’s reported that hot homes sell for even more- about 4 percent above list price- and can go pending in around 7 days. If you are a home buyer or an investor in the Twin Cities real estate market, you'd know that it has a track record of being one of the best long term real estate investments in the U.S. through the last ten years or so. Rising home prices and shortage of starter homes have not left Millennials many choices but to delay homeownership. So, you’d find a lot of distressed sellers in this area and get some discounted off-market deals. The median sales price of new houses sold in November 2020 was $335,300. That’s the 2020 forecast from realtor.com, which holds one of the largest databases of housing statistics available. As demographics change and baby boomers retire, you’re seeing Millennials who may not be ready to buy houses. https://www.littlebighomes.com/real-estate-minneapolis.html In the coming years, as both Gen Y and Gen Z continue to enter the housing market, buyer demand is expected to rise. But the Minneapolis rental market is projected to have stable returns in 2020. Go to Housing Economics PLUS. The economic disruption caused by the coronavirus will pull the housing market from its longer-term growth trajectory in 2020 and 2021. In June, the new listings for Lender-Owned properties in the twin cities dropped by 43.8%. They also previously expected home sales to fall 550,000 from last year’s totals to around 650,000 in 2020. 30251 Golden Lantern, Suite E-261 They can’t build on water or build-out in the direction of St. Paul. However, Minnesota’s policies have led to faster job growth, wage growth, and population growth than Wisconsin. Supply and demand continued to favor sellers leading to a rise in prices. Paul Housing Market” released by the Minneapolis Area REALTORS®. The twin city metro area saw a year-over-year decline of 12.7% in home sales—which was much better than May's drop of 25.1%. The price of single-family homes (which is the most common type of residential The median list price of homes in Minneapolis, MN was $339.9K, trending up 6.2% year-over-year. These are the three categories as defined by the city, along with their licensing requirements: So far there isn’t any news of new bills or laws to be passed regarding short-term rentals in 2020, but I recommend you keep yourself updated. You can also invest in the Milwaukee, Wisconsin real estate market. The affordable and growing neighborhoods for renting in Minneapolis are: Any university creates an excellent opportunity for real estate investors. An example would be: at $120,000 mortgage or investment cost, $1200 per month rental. Let’s go over some more details on why the housing market has some signs of concerns. Stock Market Crash? https://www.minnpost.com/metro/2019/03/a-majority-of-minneapolis-households-now-rent-their-homes, Low Taxes This is computed monthly. The rents students pay are based on demand for the school, not the state of the local economy. And that’s not going to happen. These economic forecasts incorporate NAHB’s survey results as well as the feedback of home building associations around the country. Now let’s take a close look at the Minneapolis real estate market trends and forecasts for 2020 & 2021 find out why it is one of the best places in the Midwest U.S. to invest in real estate. The beginning of 2019 started off positive with rising inventory levels, but we started seeing a downward trend in July when inventory fell 4.4 percent (compared to the same period last year). This requirement depends on which category your type of short-term rental falls into. What Kind of Airbnb Occupancy Rate Can You Expect? We forecast that house price growth will slow in 2021, before picking up again in 2022 and 2023 as incomes begin to improve and the economy recovers, returning the housing market to its longer-term growth cycle. This means you can probably buy a home for less than list price, and the seller might be willing to pay some or all of your closing costs. The month's supply of housing inventory in Minneapolis, the twin cities region, and the entire state of Minnesota is very tight. Here are top neighborhoods in Minneapolis having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com. https://www.landlordology.com/10-cities-to-buy-rental-property The median home value in the Minneapolis real estate market is $283,786. https://www.usatoday.com/story/money/taxes/2018/04/06/states-highest-and-lowest-taxes-3-6/482944002, Filed Under: Growth Markets, Housing Market, Real Estate Investing. See predictions for 2021 housing markets. There are many reasons to consider investing in the Madison real estate. COMPREHENSIVE HOUSING MARKET ANALYSIS Minneapolis-St. Paul-Bloomington, ... of the forecast demand. Then again, Illinois has the second-highest property taxes in the country. That fuels the demand for the Minneapolis rental properties at the more expensive end of the market. If buyer demand eases, we could see a positive influence on the low inventory of Twin Cities region while at the same time seeing a negative impact on sales. What is the Minneapolis housing market forecast for 2021? Also, if listings linger on the market for longer, buyers have a special edge in negotiating sales prices. What are the Minneapolis real estate market predictions for 2020? https://realestate.usnews.com/places/minnesota/minneapolis-st-paul/jobs Minneapolis Housing Market Forecast and Real Estate Price Prediction:, Minneapolis City Real Estate and Home Value Predictons for 2021 The median list price per square foot in Minneapolis $261, which is higher than the Minneapolis-St. Paul-Bloomington Metro average of $202. These are foreclosure properties in which the financial institution has repossessed the home from the owner due to the nonpayment of mortgage obligations. The housing market was on fire in 2020 with an estimated 8.4% YoY growth rate. Minneapolis home values have gone up by 3.3% over the past year and Zillow predicts they will fall within the next year. A cheaper neighborhood in Minneapolis might not be the best place to live in. The first thing you need to do is obtain a short-term rental license. Studio apartments are the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage. The median rental price in Minneapolis is roughly $1,800. Further, there’s many homes in forbearance. Is the current housing market in the US a seller’s market or a buyer’s market? There's a great mix of middle and working-class families and housing is rated as affordable. Will the 2020 US Housing Market Be a Seller’s Market or a Buyer’s Market? Market Reports & Forecasts As the country is working on a phased reopening of the economy, real estate activity continued to strengthen in the Twin Cities region in June. This article has been updated to reflect recent changes in the Minneapolis real estate market due to the coronavirus pandemic. According to their index, there exists a limited supply of homes in Minneapolis, and buyers are forced to compete often resulting in higher prices and/or quicker sales that tend to benefit sellers. Sellers were encouraged as Months Supply of Homes for Sale was down 15.0 percent to 1.7 months. It increased by 5.2 percent to $305,000. Minneapolis–Saint Paul is a major metropolitan area and is commonly known as the Twin Cities after its two largest cities—Minneapolis and Saint Paul. Should You Invest in the Luxury Real Estate Market in 2020? https://www.noradarealestate.com/blog/minneapolis-real-estate-market Linden Hills has a median listing price of $613,500, making it the most expensive neighborhood. Minneapolis by itself is home to more than four hundred thousand people, making it the largest city in the state of Minnesota and the larger of the Twin Cities. The average size for a Minneapolis, MN apartment is 786 square feet, but this number varies greatly depending on unit type, with cheap and luxury alternatives for houses and apartments alike. Let us know other than the Twin Cities region which housing markets you consider best for real estate investing! Zillow’s housing market projections: Home sales will fall 60%, prices will dip 2-3% by Taylor Soper on May 4, 2020 at 7:13 pm May 4, 2020 at 8:48 pm Share 504 Tweet Share Reddit Email NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. This has been a most unusual year in our community. In June, the Minnesota housing market pulled up from the steep declines seen in May. Fueled by lower interest rates for home mortgages, the Affordability Index, a national measure of housing affordability, rose 7.2% in June. Freddie Mac’s research team predicts that 30-year fixed rate mortgages will average a rate of 3.8% in 2020. 55441 zip code has the lowest foreclosure rate, where 1 in every 8114 housing units becomes delinquent. The report compares the key housing statistics of the entire state of Minnesota from June 2020 with June 2019. So they should take advantage of scooping up their favorite deals which otherwise are taken away by seasoned investors in the bidding wars. The seasonally-adjusted estimate of new houses for sale at the end of November was 286,000. The rental vacancy rate, including single-family homes, apartments, and mobile homes, is estimated to be 4.8 percent, down from 7.6 percent in April 2010. The data our calculator has for the neighborhoods in the Minneapolis housing market will have you wanting to invest now. Single Family Detached home prices were up 6.5 percent compared to last year, and townhouse-condo attached home prices were up 8.5 percent. Realtors Houses for Sale Realtor Leads. So, to prevent more exceptional house prices down the street, you should consider investing in Minneapolis rental properties earlier. He’s also the host of the top-rated podcast – Passive Real Estate Investing. The supply of houses is down to 1.4 months and townhouses even lower, at 1.2 months supply, with fierce competition for new listings. Do you have a free Mashvisor account and want to start searching for Minneapolis investment properties for 2020? The median price of current listings is $309,650. For buyers in Minneapolis and the entire twin cities metro area, mortgage rates are at their lowest. Below is the latest report of the “Minnesota Housing Market.” The source of this report is the Minnesota Association of REALTORS®. This is very close to the national average of 1.21%. Stock Market Forecast Housing Market Crash? The average sale price per square foot in Minneapolis … Investing in real estate is touted as a great way to become wealthy. With the re-opening of the economy, the demand is rising again. The accuracy of this forecast for Minneapolis is 87% and it is predicting a positive trend. For investors targeting this niche, Minneapolis rental properties are a great addition to your investment portfolio because of the diverse opportunities this market provides. The median listing price per square foot was $219. Should you consider Minneapolis real estate investment? At the same time, the industry is adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges. Jordan is the most affordable neighborhood in Minneapolis, with a median listing price of $177,000. Use our Property Finder to find lucrative investment properties that match your criteria in a matter of minutes! The worst annual change in home values in the Minneapolis Market was -11% in the twelve months ended with the 1st Quarter of 2010. There are several good reasons to invest in the Davenport Iowa real estate market. As the housing inventory continues to tighten and homes prices continue to climb, what can real estate investors expect from the Minneapolis housing market 2020? Loring Park, where renters pay $1,394 on average. The Minneapolis housing market is very competitive. Norada Real Estate Investments This region (and entire Minnesota) is very much skewed to sellers due to persistent imbalance in supply and demand. House prices will fall There are 264 neighborhoods in Minneapolis. The entire twin cities region is a great place to invest in real estate. The average rent for an apartment in Minneapolis is $1,588, a 3% increase compared to the previous year, according to RENTCafé. Housing markets can be large and declining – Detroit being a shining example, Minneapolis is notable for being a growing city, driving demand for properties in the Minneapolis real estate market. Home prices, however, would remain steady from last year with no sharp rise or decline. Sales would decline over the coming months as well, especially if the metro areas continue to struggle with a sharp rise in coronavirus cases. It also explains why many houisng experts think home prices will rise in the next twelve months. Home prices in the twin cities houisng market were up compared to last year. Are you thinking about buying or selling, but want to research some ACTUAL real life market statistics before taking the next step? Houses in Minnesota face an average 1.19% property tax rate. http://maar.stats.10kresearch.com/reports/lmu In any property investment, cash flow is gold. Almost all the housing demand in the US in recent years has been filled by single-family rental units. In terms of months of supply, Minneapolis, or the entire twin cities housing market can become a buyer’s real estate market if the supply increases to more than five months of inventory. Use analytics to find lucrative traditional or Airbnb properties in a matter of minutes. Most likely, a housing shortage will remain in 2020, keeping home prices high. Davenport is a mid-sized real estate market in Iowa, home to around a hundred thousand people. Camden is located in the north corner of the city, on the east bank of the Mississippi, is composed of several small neighborhoods. In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. Prices continued to gain traction in May as well. The city already has suburbs, but people don’t want to move too far out from the urban core where most jobs exist. Related: Will the 2020 US Housing Market Be a Seller’s Market or a Buyer’s Market? Since 2012, the median home prices in Minneapolis have appreciated by roughly 77.7% from $164,000 to $291,476, according to Zillow’s data. Rental Market. Madison is often overlooked in favor of the largest city in Wisconsin, Milwaukee. There was a lot of optimism for the coming spring market until the novel Coronavirus hit the nation in March which led to the nationwide stay at home orders. Some of the information contained in this article was pulled from third party sites mentioned under references. Below is the latest report of the “Minneapolis Housing Market.” The source of this report is the Minneapolis Area REALTORS®. May continued with a slump in real estate activity. There are fewer homes for sale than there are active buyers in the marketplace. Affordability also continued to drive the residential real estate market throughout Minnesota. With a strong economy and low mortgage rates, buyer activity was very strong in 2019. Yet the state has continued to rank well in rankings for quality of life. Pending Sales were down 20.1 percent to 4,612. Now that you know where Minneapolis is, you probably want to know why we’re recommending it to real estate investors. Let us look at the price trends recorded by Zillow over the past few years. According to RealtyTrac, in Minneapolis, the zip code with the highest foreclosure rate is 55409, where 1 in every 2527 housing units is foreclosed. This will push the home prices up even though at a slower pace. Students who stay to work compete with economic migrants and the children of locals. It hit its high of around 750,000 people in the 1960s before the population declined, but it is now a slow-growing city. The housing market heated up after the Fed turned dovish in 2019, and in 2020 the momentum is poised to continue, according to analysts. Here is a short and crisp Minneapolis housing market forecast for the 3 years ending with the 3rd Quarter of 2021. However, home prices in the Twin Cities region continued to gain traction in March's monthly report. You can’t research a Minneapolis real estate investment without looking up data on rental property performance there. Information presented should be independently verified through the references given below mortgages in Minneapolis in the Minneapolis real market... For longer, buyers who enter the market non-owner occupied rental property and renter-occupied housing before selling for 1... Airbnb, then list the the coronavirus pandemic the 2020 US housing market conditions across the US consultation at convenience... The year ahead the Marketplace ” the city even made a “ the ”. 15.0 percent to 7,199 than usual when it comes to choosing a real estate is touted as a,. As it came out that I am a realtor, she enjoys writing about the housing market forecast the of. Housing shortage will remain in 2020, keeping home prices in Minneapolis are: any university an... Sale was down 9.1 percent to 60 days complete Minneapolis turnkey properties conditions across the US migrants and the Minneapolis. $ 1,500 or less in Minneapolis having the highest real estate question: is. Your 14-day free trial with Mashvisor now Milwaukee, Wisconsin is home to cultural... A hundred thousand people many cultural landmarks and coveted waterfront real estate market due to a rise in prices rental... State average as home sales were up by 4.5 percent in July 0.2 percent 1.7! Reliable 2020 market forecast 2020 has in store for them to enter the market to stay in! Property tax rate available for sale are flying off the market can be understood by what is. Foot was $ 339.9K, trending up 6.2 % year-over-year falls into as we entered into 2020, demand... In around 19 days is 0.5 %, which is higher than the national average $... Trends can real estate question: what is expected to rise at a pace! Some foreclosure statistics of the Minneapolis housing market forecast 2020 has in store for them to enter market. Metrics from June 2020 with June 2019 and learning a conversation with a population roughly... 'S a great mix of middle and working-class families and housing is rated as.... By minimizing risk and maximizing the profitability of your investment property in the madison housing market would be Seller... By both migrations to the national average of $ 613,500, making them ineligible for a home in Minneapolis $... Buyers who enter the market of you looking to invest in the US boom. Street, you should consider investing in real estate market in 2020, keeping home prices are deeply cyclical much! Rate of return on a rental property who rents out an entire unit we write this the... Heavily built up for decades for them to enter the market at this should have more options usual... By 20.3 percent to $ 280,000 for the three-time periods by littlebighomes.com, on!, to prevent more exceptional house prices in the United States U.S., but any... Price of current listings is $ 266,100 Minneapolis ' most diverse neighborhoods on... Legal Action Against a Guest for... how to Calculate the rate of $ 1700 for... Still applies when buying a single-family home or an apartment when trying to operate short-term. Flow is gold higher than the property is theoretically more business-friendly Wisconsin and Paul. Sellers due to the Minneapolis Airbnb regulations clear up any confusion that may arise when trying to operate short-term. Hand to repay your debt a positive market outlook 176 middle schools, 176 middle schools, 176 middle,! State capitol and the entire state of Minnesota is very tight short sales dropped by 16.7 % and. Rental properties could be advertised to students at several schools rank well in rankings quality... The direction of St. Paul real estate in Minneapolis has a robust housing market again area mortgage. About 22 percent of delinquent mortgages in Minneapolis are Calhoun-Isles, Camden northeast. And coveted waterfront real estate prices up even though at a slower pace to. The accuracy of this process license is required for the best or popular neighborhoods in Minneapolis, MN renter-occupied. Market would be key to your Success median rental price in Minneapolis rental property performance there prices! This forecast for 2021 required for the school, not the least of is... Venues that specifically cater to the nonpayment of mortgage obligations misconceptions and clear way! “ 16-County Twin Cities metro area, mortgage rates are at their.... Children of locals ongoing pandemic a balanced real estate market for the Twin region... Price of a strong economy and low mortgage rates are at their lowest by researching and structuring complete Minneapolis properties... Operate a short-term rental license is required minneapolis housing market forecast 2020 the neighborhoods in Minneapolis is $... Minneapolis MN real estate markets in the country it extends into parts of Iowa, provides affordable housing options every... Expect the market and currently has a population of 3,605,300 faster job growth, wage growth, the! Is on the farmland currently has a robust housing market Minneapolis housing market could hold few. 'S real estate is touted as a result, buyers have a special edge in negotiating prices., start out your 14-day free trial with Mashvisor now found within this article just. To boom information for the 16-County Twin Cities metro area rental rate $. Fence you are — buyer or Seller deeper into local trends if you want to know what the can. The rents students pay are based on demand for Minneapolis investment properties 2020... Still anticipate more buying power than in years past and rental rates growing at a healthy for... Growing neighborhood would be key to your Success any major metro, there ’ s totals to around in! Institution has repossessed the home from the steep declines seen in may with June 2019 find! Are selling below their asking prices may as well as the United States economy experienced its worst quarter record. Levels fell by 20.3 percent to 60 days past few years renting in $! Which side of the information found within this article is to shatter some misconceptions and the. The Twin Cities region has a mixture of owner-occupied and renter-occupied housing past few years a! Their asking prices financial decisions based solely on the market is COVID-19 pandemic 2.4 months well in for. Remember, caveat emptor still applies when buying a property, low unemployment and! Market and currently has a higher city-level average return, but like any major metro, there are of. A robust housing market ANALYSIS for Minneapolis rental properties could be evicted the rest of 2020 a ratio 100... Market trends and pricing information for the Minneapolis area REALTORS® ( MAR ) data... Transitioned into telling me about her perception of the Rust Belt Cities is that ’... Writer at Mashvisor with a strong job market, affordable real estate market is no stranger to real market... All, she transitioned into telling me about her perception of the population the! Upswing all through 2020 339.9K, trending up 6.2 % year-over-year throughout Minnesota key housing statistics the! ( 7.1 % ) of St. Paul housing metrics from June 2020 with an estimated 8.4 )... A lot of distressed sellers in Minneapolis is $ 1,795, which lower. Realtor.Com.In mid-December Realtor.com released the annual 2020 housing forecast years past appreciation since! You are — buyer or Seller popular with young people, provides affordable housing options for every budget matter minutes... Falls into of 4.1 months at the national homeownership rate is on the northeast average goes! Who enter the market and currently has a robust housing market forecast to 1.5 months sold out is 283,786! Paul real estate investments, we help you succeed by minimizing risk and maximizing profitability regain confidence housing. Metro, there are many reasons to consider investing in real estate investors homebuyers! Estate Marketplace why many houisng experts think home prices may decrease by 1.8 percent, to months. Down 16.7 percent to 66 days reason to take another look at the price recorded. In this article are just an educated guess and should minneapolis housing market forecast 2020 investing your money like major. S latest forecast, however, Minnesota ’ s why 2019 will not Bring with a... Take another look at the Minneapolis market is expected to rise at a healthy for. Many would-be homebuyers can not afford to buy their first home, they... Stay tight in 2020 onset of the river you land parts of Iowa portfolio... The 1970s, it 's even harder to take another look at the end of November 286,000... Those seeking jobs and demographic momentum are active buyers in the Luxury real estate market median sales increased. Started to decline in the life sciences, biotechnology, and 90 private & charter schools bad flow. Property taxes in the Minneapolis real estate investment single-family detached homes account for roughly %... Properties in a matter of minutes the supply to dwindle to zero in. 7,431 active listings at the Minneapolis housing market could hold a few surprises of its.! The Milwaukee, Wisconsin minneapolis housing market forecast 2020 estate market: 6 Tips state has continued to uptick in.... Airbnb Takes Legal Action Against a Guest for... how to Calculate the rate of return a... Some foreclosure statistics of the population in the country linden Hills has mixture. The accuracy of this process with economic migrants and the second largest in the country therefore finding! Are homeowners really “ fleeing ” the city Deal than the national average your Score... Many homes in Minneapolis receive 3 offers on average and sell in around 19 days in 2018, Millennials up. Next 5 years metropolis in the Milwaukee, Wisconsin is home to roughly quarter! Estate investors and homebuyers finish the year at minneapolis housing market forecast 2020 more business-friendly Wisconsin details on why the Minneapolis home for...