The Southwest Journal recently reported about rent increases in several Lyndale Neighborhood multi-family buildings. That strikes us as a good time to take the pulse of the owner-occupied or homeownership market.
Lyndale neighborhood prices have risen, as have those in Powderhorn and the entire city. Lyndale prices are hovering between the powderhorn community and the entirety of Minneapolis. At $217,450, prices are just under 10.0 percent higher than in the Powerderhorn Community but have risen about 28.0 percent from this time last year.
For those looking for condos, however, the landscape is significantly more affordable than when you include single-family homes in the mix. Lyndale condo prices are $127,500, the same as Powderhorn, significantly less than Minneapolis and have only risen a more modest 8.1 percent over the last year.
Locking the right condo into a purchase agreement can be challenging, however. Inventory levels are quite thin, which can pit serious buyers against one another and also suggests that sellers are likely to get (and accept) strong and competitive offers.
Both home prices and rents are rising across the board, though at differing rates depending on location, building and price point. There are still lots of asymmetries when it comes to supply and demand. The key to overcoming any affordability challenges will be maintaining our steady job and wage growth and ensuring home prices rise in line with incomes.