Skip to main content
Publish date:

People are not 'fleeing' Minneapolis, real estate data shows

While it's been a tumultuous year for the city, demand to live in it is still strong.
Author:
Nicollet Mall

The reports of Minneapolis' death have been greatly exaggerated, according to the latest real estate data.

A turbulent year for the city that has been hit hard by COVID-19 closures followed by the death of George Floyd, civil unrest, calls to dismantle Minneapolis PD, and a subsequent spike of crime has sparked claims that people are "fleeing" the city.

But that's not the case if property market stats are anything to go by.

The Minneapolis Area Association of Realtors this week released the results of its study into the Minneapolis property market to see if there was any truth to the claim that residents are packing their bags after a tumultuous few months.

Quite the contrary, with the study finding that Minneapolis' typically strong property market remains so despite the fallout from huge levels of unemployment related to the pandemic.

Looking to buy or sell? Find a realtor using BMTN's directory

While the effects of the civil unrest can be seen by a drop in showings and new listings in the week that followed George Floyd's death, the signs are that demand for property in the city remains as robust as ever, aided by a prolonged period of low interest rates.

The number of new listings in June was down 4.2% compared to last year, the same drop seen in Minnetonka, while suburbs including St. Louis Park and Golden Valley saw an increase in listings.

Screen Shot 2020-08-06 at 10.10.54 AM

What's more, such is the demand for housing in Minneapolis, the number of days a property spends on the market in the city dropped by 5.9% in June compared to last year, whereas St. Paul and suburbs including Minnetonka, Golden Valley, and St. Louis Park all saw houses stay on the market for longer.

Screen Shot 2020-08-06 at 10.20.47 AM

A check on social media in the past few weeks throws up plenty of anecdotal evidence that the property market is incredibly hot in Minneapolis right now, with properties particularly at the lower end of the market receiving multiple bidders.

A sign that people were leaving the city would be noticeable in the percentage of asking price houses are sold for, but the Minneapolis Area Association of Realtors finds there has been no change in the percentage of listing price in Minneapolis.

Screen Shot 2020-08-06 at 10.24.51 AM

"In summary, a closer examination of the data does not support claims that the City of Minneapolis is seeing a disproportionate increase in seller activity in Minneapolis in the weeks following the unrest," the association concluded.

"Recent market activity in the Minneapolis isn’t unique from other surrounding cities. Well-presented, turnkey properties in Minneapolis very often have multiple offers. Even if a disproportionately large share of homeowners were to list their homes, the insatiable demand is likely to absorb those extra listings, likely limiting any negative impacts on values.

"Moreover, there are a multitude of factors impacting market dynamics at any given time, including recent disruptions from COVID-19."

There are suggestions however of discontent in downtown Minneapolis, with a Minneapolis Downtown Council survey finding that "dozens" of businesses are considering a move out of the area, though none of these were named.

However, a recent crime spike and the uncertain future of the Minneapolis Police Department aren't alone among the reasons for the pressure, given that the pandemic continues to take a huge toll, with the survey finding "a lack of people working or socializing" downtown is among the complaints.

Next Up

D'Angelo Russell

With KAT out, Timberwolves can't upset Nets

D'Angelo Russell stepped up but couldn't overcome Brooklyn's firepower.

Everson Griffen Vikings dot com

Everson Griffen confirms he has bipolar disorder

"I’ve been running from it a long time. I’m not ashamed of it anymore.”

Angela Renee Jones, St. Cloud murder suspect

St. Cloud suspect now charged in two local murder cases

Both murders happened within a day of each other in June.

st anthony 3 crop

Twin Cities police ask for help finding missing 16-year-old

Police say all her family and friends have been contacted, and none of them know where she is.

mpd suspect 12.3.21 - 1 - CROP

MPD releases photos of shooting suspect, asks for public's help

The man is wanted in connection with a fatal shooting that happened Wednesday evening.

redmons popcorn colbert 2

Support grows for Redmon's Popcorn after shop's sudden closure

The county also commented on the situation, saying it hopes to help owner Zack Redmon.

prior lake high school

Prior Lake HS investigating another 'racist' video involving student

The principal said the social media video was reported to them this week.

Screen Shot 2021-12-03 at 3.08.27 PM

Walz: Minnesota has secured 1 million rapid, at-home COVID tests for kids

It comes as the delta variant continues to surge in Minnesota, and the omicron variant might follow.

boundary waters

Forest Service limiting permits to BWCAW due to damage, overcrowding

Visitors have been cutting down trees and have been forced to compete for campsites.

police lights

Lockdown update: Armed man threatened to go to Kimball High School

A high school and elementary school near St. Cloud went into lockdown as a precaution.

chaska sewer

People in Chaska are flushing the wrong crap down the toilet

Water and sewer crews in Chaska have had to clean the same pump four times in the past seven days.

Related

Pixabay - keys home house

Latest data show Minnesota's housing market is still crazy

Demand continues to outpace supply, and sales prices are at historic highs.

House for sale

Median house prices in Twin Cities pass $300,000 for first time

However, there was a significant slump in new listings resulting from COVID-19.

House for sale

Zillow says its upgraded 'Zestimates' are now more accurate

It's employing machine learning to increase the accuracy of its price estimation feature.

House for sale

Twin Cities median home price hits record $280,000 in 2019

The Minneapolis Area Association of Realtors has issued its annual report.

House for sale

Zillow to start buying homes directly from sellers in Twin Cities

The Twin Cities becomes the 10th metro where Zillow has launched its buying service.

Curtis aldrich avenue

'Rehab Addict' Nicole Curtis angered by another Minneapolis teardown

The TV star is accusing the City of Minneapolis of hypocrisy over its housing policy.