With the housing market on the rise in various parts of the U.S., Minnesota is seeing a surge in home sales, strengthening the real estate industry as a whole. The Twin Cities’ housing value gains, along with its overall affordability, makes the Minneapolis, Minnesota, real estate market one of the best in the nation. With solid growth in a stable market, investors are looking at Minneapolis as a leading indicator of how housing prices will move across the U.S.
“The stability this indicates within the Twin Cities housing market will likely gain investor attention once again,” real estate firm Home Destination said. “For home sellers, knowing that metro home prices run ahead of national trends helps them feel confident of decisions to move their equity to another home.”
Here are the top five reasons for investing in Minnesota:
1. The economy is seeing steady gains
Minnesota’s growing economy is leading to a low jobless rate that is much smaller than the national average. In turn, employment gains boost the housing market and lead to more real estate investments in the area. Investments in the state’s private sector combined with the high rate of consumer spending is helping to boost economic activity in Minnesota.
2. Employment rates are high
The same firms that are looking to keep up with consumer demand are also making Minnesota a great place to find a job, especially for millennial job seekers. According to the U.S. Bureau of Labor Statistics, Minnesota had a 3.7 percent unemployment rate in November 2014. While younger job seekers often struggle to land a high-paying position, Minnesota has plenty of opportunities to offer millennials at tech firms and health care providers.
3. Jobs in variety of industries
Minnesota’s local economy benefits from a wide range of industries, from financial services to technology to retail. In Minneapolis, companies are optimistic about expansion and look forward to increase investments in machinery and equipment. Firms with offices or headquarters located in Minneapolis include Target, 3M and Cargill. With the economy expanding, employers based in the Twin Cities could ramp up hiring.
4. Best university and schools
Not only is Minnesota’s biggest city great for millennial job seekers, the state also has a desirable housing market for young families looking to move for the region’s spectacular universities and schools. Minnesota features educational institutions like the University of Minnesota and Carleton College, resulting in increases in demand for rental housing.
5. Demand for rental housing
As more job seekers look to move to Minnesota, housing and living costs will most likely affect their decision of where to relocate. Minnesota’s rental housing market, even in sprawling metropolitan Minneapolis, is more affordable for some millennials and people with young families compared to other metro areas. As a cost-saving option, families looking to spread out in a new house could search for single-family homes to rent. In addition, renting a home as opposed to buying gives tenants the flexibility to pick up and go where there are higher paying jobs without having to worry about selling their house and buying a new one before the big move.
In addition to higher demand for rental homes, the stable housing prices and growing inventory make the Minnesota real estate market attractive for investors. Minnesota real estate is more cost-effective for the space they get compared to other big cities.
With Minnesota offering good schools, high employment rates and plenty of choices for rental housing, more residents are likely to move to the state to take advantage of its great location and at a lower cost than other states. Real estate investors with Minnesota on their radar should consider buying Minneapolis investment properties. Working with a trusted real estate investment firm could ease the process of finding the right neighborhoods to buy rental properties.
For more information on investing in Minnesota, contact HomeUnion®.