Trading Places on Affordability

By David Arbit on Wednesday, October 26th, 2016

actives-under-250k

Since the beginning of 2003 (chart above starts at 2005), there have been more homes for sale in Minneapolis priced under $250,000 than in St. Paul. And then one cold winter morning that was no longer the case. Starting in February 2016 and every month since, there have been more homes priced under $250,000 for sale in St. Paul than in Minneapolis. There are a few different ways to interpret and many factors driving this development, though stronger demand in Minneapolis for entry-level homes, promising rehab and investment opportunities, a strong rental conversion trend and tear-down acquisition targets in certain areas all seem to play a key role. On the other hand (this is why Truman wanted a one-handed economist), St. Paul deserves some credit for either deliberately or organically offering more affordable housing choices than Minneapolis. In reality, they’re simply being absorbed more slowly in St. Paul than in Minneapolis. Either way, just don’t tell our friends over at SPAAR we said that!

 

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