It seems like homebuyers can’t get enough of the Twin Cities market! Despite a four-year construction boom, demand has not let up. That has Minnesota homebuyers – and home builders – poking around the suburbs in unlikely places.
According to Witten Advisors, a national multifamily housing consulting firm, the Minneapolis-St. Paul metro has the tightest vacancy rate of any major U.S. city. Most experts agree that strong renter demand and steady rent growth are likely to continue in the Twin Cities rental market.
As a result, we’re seeing a shift to the suburbs.
During an event hosted by the Minnesota Multi-Housing Association last month, a panel of industry leaders said that developers have turned their attention to underserved suburban locations in an effort to provide more diverse types of housing.
For instance, Opus Development Co., which is in the midst of building a high-rise in downtown Minneapolis, is also building a new apartment complex in Edina near the headquarters of UnitedHealth Corp, reports the Star Tribune.
Meanwhile, developer Jeff Schoenwetter has a 21-unit luxury condo building in the works for the former Meyer Bros. Dairy site in Wayzata. The flat-roofed, stone and wood structure was inspired by the work of architect Frank Lloyd Wright and is considered a welcome addition to the suburban neighborhood. The project is located at 105 E. Lake Street on the northern shore of Lake Minnetonka.
Across town, developers are working on the next phase of the Promenade of Wayzata, a mixed-use project that includes retail and senior housing – a project that saw its condos sell out quickly. The second phase will include “The Landing,” a 31-unit building that’s almost entirely presold already.
All of this is great news for Minnesota homebuyers, who have often been relegated to single-family homes if they wanted to buy in the suburbs.
Whether these trends continue remains to be seen. But in the meantime, Minnesota homebuyers seem more than happy to trade in their city digs for more affordable homes in the suburbs.
Interested in buying a home in the Twin Cities area? Contact our friends at MN Realty Guide, one of the top real estate agencies in the Minneapolis-St. Paul region. They’d be happy to send someone along to guide you in your home search.