Hot spots are Minneapolis first tier suburbs like St Louis Park and Richfield are hot, St Cloud, Duluth and keep an eye on Rochester with the Mayo Clinic’s global health initiative, an innovative economic development plan. www.dmc.mn
Millenials and seniors are moving in close to transportation, there the new Green Line light rail connecting the downtowns of Minneapolis and St Paul. Look for opportunity in rentals and commercial deals along the transit line. Many businesses closed during the construction and now the buildings are available with the promise of traffic.
Housing inventory is at 10 year low, population growth is strong, we have low unemployment, rising home values, and rising rents show you can expect a 3-5% appreciation in 2016. A good strong economy makes this a hotbed for investing. And holy cow, the mortgage interest rates are the still super low so first time homebuyers are entering with ease.
What’s tight is the apartment market. Landlords are hanging on to their buildings because they are getting peak rental rates. You will see this shifting in later 2016 as the saturation point comes closer with the quantity of newly built multi family apartments. Solid investments, great returns but pricing increases in multifamily over last year.
Urban areas are strong, though the rest of state is not growing at the same rate. Overall, Minnesota is a stable, robust market great for investment in real estate.