Minneapolis seen as top housing market in 2011
1: Minneapolis-St. Paul-Bloomington Minn.-Wisc.
Health Index: 91.6
2011 Population Forecast: 3,326,400
2011 Total Building Permit Forecast: 4,511
2012 Total Building Permit Forecast: 10,118
If home prices are an indicator of market health–and some would say they are the best indicator–then Minneapolis is very healthy indeed. Home prices are expected to rise 8% next year, the highest rate among the 100 largest housing markets, and a big reason that Minneapolis finishes atop our healthy markets list.
A major hub for medical technology and the headquarters for many large corporations, Minneapolis appears poised for a big rebound in housing. One reason is that employment is forecasted to grow 2.5% next year. Building permit activity fell 21% in the first half of 2011, but it’s expected to more than double in 2012.
One negative in the market is that home prices plunged during the first half of 2011. Median home prices, $147,300 after the first half of the year, are down from $229,200 in 2006, a 36% drop that is close to the national average. Home prices have fallen 13% this year due to an increase in foreclosure sales. But Hanley Wood Market Intelligence expects prices to rebound next year.
The apartment market has been particularly strong in Minneapolis. As vacancy rates fell from 5% to 2.4%, developers started new projects, many aimed at a growing millennial (18-to-30 years old) population. Vacant units are reportedly hard to find in downtown Minneapolis and St. Paul.
Visit our Local Markets page for Minneapolis-St. Paul, MN to see more data and analysis.
Original article: Click Here
September 20, 2011