Minneapolis has seen rapid growth over the last several years. This undoubtedly comes from the growing trends of millennials and recent college graduates moving towards low-cost metropolitan areas, and already established professionals fleeing high cost states and cities.
This expansion is expected to exceed the 10% by 2020, or about 40,000 new residents over the past decade. To accommodate this growth a goal of raising over $50 million to fund new housing was announced to combat the rising housing costs.
However, to those leaving high-cost states, Minneapolis’ median home value of $268,000 looks quite manageable. Even with population growth, home values are climbing at a manageable rate of 5% a year, and are expected to climb another 3.5% in the next year.
Prices vary across Minneapolis quite a bit too, and deals can be found in neighborhoods that are quickly developing. Each of those neighborhoods provides something for everyone and consist of many unique traits and characteristics.
If you’re considering a move to Minneapolis, these neighborhoods should definitely be on your list to consider buying in. An expert, local real estate agent can help you determine which is best for your needs, and will help you uncover deals and cost savings through the home buying process.
Over the last several years Linden Hills has been one of the hottest real estate markets in Minneapolis. Home values are quite high here, and residents are mostly high income earners from Minneapolis’ business community.
Situated between two lakes, Lake Calhoun and Lake Harriet, this is a community that seems almost like a small town. The lakes provide plenty of activities as they are surrounded by plenty of open spaces, trails, and even host boating and water activities when the weather is nice.
Linden Hills also has a working streetcar and his home to the street car museum, Lyndale Park Rose Garden, and many eclectic shops and restaurants.
Home values here now exceed $525,000, but has seen moderating growth over the last couple years. This provides an opportunity for buyers looking to get into a great neighborhood, that also has excellent schools, over the next year.
Home prices have increased over 3.5% in the Ericsson neighborhood over the past year, and now have a median value around $280,000. Many of the homes are smaller and more bungalow in style, which presents opportunities for those looking to buy undervalued properties and make repairs and renovations or to consider additions that increase value.
Much of the community in Ericsson is centered around Lake Hiawatha and its neighboring golf course. As is a theme in Minneapolis, this creates a wonderful suburban feel to a neighborhood that is tight-knit and protective of its lake access.
While this is primarily a picturesque single family neighborhood, the public parks and open spaces are often full of events and activities year round. Additionally, the light rail is close by and provides easy access to downtown and other entertainment districts.
Adjacent to downtown is the North Loop District, which is a former industrial warehouse area that is on the national register of historic places. The north loop used to signify the northern loop of Minneapolis’ trolley tracks, and now defines the shape of the neighborhood.
This neighborhood suffered bad during the industrial downturn of the 1960s and 1970s, but later became home to Minneapolis’ growing art scene in the 1990s and early 2000s. The neighborhood is now full of mid-rise apartment and condo buildings and caters to a young professional crowd that likes entertainment and trendy eateries.
Homes in the North Loop and Warehouse District still command well over $370,000 and are expected to increase 2% over the coming year.
Continuing the trend of proximity to water is Loring Park, which includes Loring Pond and the Loring Greenway. This public park has biking paths, an ice rink, and plenty of space for picnics and outdoor entertainment. Cultural institutions are also nearby with the Walker Arts Center, Sculpture Gardens, and the iconic Basilica of St. Mary.
Home prices in this neighborhood are at a median value of $250,000, but are expected to grow by over 4% in the next year. The proximity to downtown Minneapolis and other job centers continue to make this neighborhood a draw for those seeking a more urban feel. However, buyers will find a mix of unit types including newly constructed condos and older, historic single family homes.
The Whittier Neighborhood is one of the most diverse in Minneapolis. As home to the Minneapolis Institute of Art and the College of Art and Design, many residents are part of the Minneapolis arts community. This has cultivated and eclectic neighborhood feel and many small shops and ethnic restaurants and markets thrive here.
The diversity of this neighborhood, highlighted by a stellar dining scene that attracts foodies from across the city, has led to rapidly increasing home values. While still below the city median value at $183,000, prices increased over 6.5% last year and are expected to climb another 5% in the coming year.
Whittier has a great diversity of housing stock as well, but recently has seen an influx of new and luxury housing developments. This neighborhood provides ample opportunity for those looking to invest in housing or grow a rental portfolio.
If you’re thinking of moving to Minnesota, you’ll want to speak to someone who knows the state and its real estate sector — neighborhood-by-neighborhood. All Clever Partner Agents are full-service and top-rated in their local markets.
More importantly, Clever has a nationwide network of top-rated real estate agents who have already agreed to offer a commission rebate of $1,000 of the purchase price of your home. Make sure you’re working with a top-rated, flat-fee real estate agent from Clever.