POTW | East Town (f.k.a. Downtown East)
By David Arbit on Monday, May 16th, 2016
Even lifetime residents may not be aware that there are actually six official neighborhoods in downtown Minneapolis. They include North Loop, Downtown West, Downtown East, Elliot Park, Loring Park and Stevens Square/Loring Heights. For a good visual, try this.
Recently, in the face of all the new development happening around the Vikings Stadium, Downtown East has been rebranded as “East Town” and will include the neighborhoods formerly known as Downtown East and Elliot Park. It will also include the unofficial area sandwiched between the river and Washington Avenue known as the Mill District. In the visuals below, “East Town” is a custom drawn area that encompasses Downtown East (including the Mill District) as well as Elliot Park.
In the depths of the Great Recession (between mid-2007 and mid-2009), all three geographies had almost identical previously-owned market prices. By the second half of 2009, Downtown East clearly began to benefit from major reinvestment around the riverfront and Washington Avenue, allowing it to pull away from the pack. Meanwhile, Elliot Park showed a slight loss followed by stabilization and—as of the beginning of 2013—significant price recovery.
Some prefer the price per square foot metric to median sales price since it accounts for differentials in home size. For example, paying $275,000 for 2,200 square feet might sound like a better deal than paying $300,000 for 2,500 square feet. But despite the higher price tag, the $300,000 home turns out to be $120 per foot versus $125 per foot for the $275,000 home.
Values on a per square footage basis vary within East Town. Downtown East sellers are yielding approximately $355 per foot, while Elliot Park homes are selling for about $269 per foot. On a 1,200 square foot home, that translates to more than a $100,000 difference in overall price tag. Because East Town encapsulates both Downtown East and Elliot Park, it’s in the middle. It’s weighted toward the Elliot Park price because there’s more unit volume there.
Downtown East currently has only 1.2 months supply of inventory—indicating a very tight market. Elliot Park is slightly more balanced at 2.1 months, but not by much. East Town is in between at 1.7 months.
Days on market follows a similar trend. Downtown East leads the pack at a very brisk 19 days on market, with Elliot Park weighing in at 36 days and the East Town umbrella area shows 27 days.
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