Minneapolis - St. Paul Stands Above National Averages Once Again - Recording a High Homeownership Rate
March 3, 2014
Minneapolis - St. Paul - Bloomington, MN-WI metro area has 900,327 owner-occupied single-family homes, according NAHB's special study comparing local housing markets. The article provided statistics based on the 2010 American Community Survey (ACS) ranking all U.S. metropolitan areas. The study grants readers the latest available report using data from the recently released 2012 ACS.
Minneapolis-St. Paul-Bloomington metro area and the Philadelphia metro division are the only two metro housing districts tracked with homeownership rates above the national average; 69.4 percent this metropolitan housing market of population of 3,353,724 is owner-occupied. Homeownership Rates NAHB defines occupied units as either rented or owned dwellings. Therefore, a high homeownership rate implies a low rental rate. Read our recent press release on how some Minnesota cities have rental housing saturation concerns that have triggered the 30% rental ban rule.
Additional Findings About Homeownership Concentration:
* With the exception of Modesto, CA, all of the metropolitan areas in the top ten are located in the Midwest.
* All metropolitan areas in the top ten have median home values below the national figure.
* The median value of owner-occupied housing units for the entire United States in 2012 was $171,900.
Where New Homeowners Are Coming From
Minneapolis-St. Paul was one of 21 markets that received low severity rankings in all four categories studied in a national Business Journal analysis of 102 metro areas with at least 500,000 residents. In theory, with a better average in low income levels, it puts the average Twin Cities residents in a stronger position to buy and own a home.
"The Minnesota economy is still stronger than most of the country," said Jay Coggins, associate professor at the University of Minnesota's Department of Applied Economics in the January 31st article titled Analysis: Twin Cities has narrow income gap compared to U.S. metros. "That is the bottom line on why incomes are higher and the poverty rate is lower than the rest of the country."
The Twin Cities metro area has one of the narrowest divides between the haves and the have-nots compared to peers in the U.S, where there is a growing divide between the rich and the rest of the world. The Minneapolis-St. Paul metro consistently received notable scores on income inequality, showing less disparity than nationally averages. "The income inequality gap is widening across the U.S., and cities in the south, interior west and industrial Midwest suffer from the widest income gap", the analysis found.
Minneapolis Area Residents Successfully Attained Homeownership in 2013
The Minneapolis - St. Paul, MN housing market has shown unremarkable swings and solid footing during the recent ups and downs many other metropolitan cities have experienced. A higher percentage of Minneapolis area residents successfully attained the status of homeownership in 2013 than most markets across the nation - in spite of headwinds that dragged on buyers in other states.
Research and housing enthusiast at the University of Minnesota are seeking to close the gap in home ownership rates amongst the metro's diverse ethnic groups. To successfully addressed and increase Minneapolis - St. Paul area homeownership levels, the focus to expand the ability of additional households to attain the ability to buy and own a home is lead by the U of M.
Where New Homeowners Are Coming From
In October 2013, RealtyTrac predicted that 2.5 million additional homeowners that may qualify to become boomerang buyers and hold the keys to returning homeownership levels to norm. In practical terms, new financing opportunities increase the likelihood that boomerang home buyers may return to homeownership 2 years sooner than previously.
Another segment of individuals stepping into homeowners are Twin Cities first-time homebuyers. Surprisingly, the a large pool of buyers in 2013 came from the metro's Millennial younger homebuyer.
Minneapolis - St. Paul Have a Robust and Resilient Housing Market
The Minneapolis-Saint Paul metropolitan real estate market has been a fairly robust and resilient sector, outperforming in comparisons to other metropolitan areas and ranking tops in the nation.
When compared with the nation’s 25 most populous metropolitan areas, 2012 data show that the Twin Cities 13-county region has:
• The highest overall employment rate (76%)
• The second-highest rate of homeownership (70%)
• The second-lowest overall rate of poverty (11%)
"It’s also a good time for investors to transition to purchasing rental homes rather than flips. As families relocate here, we will need the inventory of rental homes for those families that may have blemished credit." ~ http://www.investorsbeat.com/2014-property-predictions-for-alabama-arizona-california-colorado-and-florida/
Contact Home Destination at 612-396-7832 if you are considering buying a Twin Cities homes and enjoying the status of homeowner. Read more trends in the Twin Cities housing market.
** Download the Draft version released by the Twin Cities Metro Council on the Choice Housing Opportunities in the Minneapolis - St. Paul Equity Assessment February 2014
Download the NAHB Snapshot of Homeownership Rates In Local Communities.
Download the University of Minnesota's Study on the Minneapolis - St. Paul Assessment in Homeownership Gaps
Jenna Thuening, a Twin Cities residential Realtor Reports on the NAHB Study Finding Minneapolis - St. Paul second nationally for homeownership rates.
Eden Prairie MN 55344
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