That’s not exactly the headline you want to read as a renter. However if you’ve rented in Minneapolis/St. Paul for any period of time you already know that rent is sky high. Unfortunately that expensive rent has and is going up. Across the entire Twin Cities rent is up 3.5% from last year putting the number over $1,000 on average for the first time in history. If you’re living downtown that number jumped even more; up 9.1% from last year.
Think maybe all those new buildings you see going up in and around both downtowns will help keep the prices down? Not true according to the Star Tribune.
“Greater supply of rental units does not seem to be having an impact on price. The newspaper said that while more than 1,000 new apartments came on the metro market in the first quarter, the overall supply of rental units remains below what’s considered healthy levels, which is pushing rents higher.
In better news, the city of Oakdale was ranked #15th in CNN/Money Magazines list of most affordable purchase housing markets in the US. Silver lining!
According to Standard & Poor’s Case-Shiller Home Price Index home prices were up 9.4% in January (year over year). This has become a trend in Minnesota over the last 18 months. Even one of the worst winters in recent memory hasn’t stopped home buyers from throwing on their snow-boots and trekking to open houses. That being said it still seems sellers are anxious. Months inventory of homes for sale in the Twin Cities remains well below 5 and in some cities, like Arden Hills, it is below 2 months of inventory. This indicates we are still in a strong sellers market. With the continuation of low 4% interest rates it doesn’t seem like the market is slowing down any time soon!
Now to the semi bad news. According to a Bring Me the News piece, and a report from MPR News, the cost to renters in Minnesota only continues to rise.
“The report said that full-time workers would have to earn $16.50 per hour to afford a modest, two-bedroom rental in Minnesota that averages about $850 a month. But the typical renter in the state only makes about $14.50 per hour.” (Bring me the News).
Makes sense as to why there are so many first time home buyers in Minnesota right now!
Where do you think the market is headed in the next year?