rent affordability

Rent affordability declines, while home sales continue to rise in MN!

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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?