New York and Minneapolis… top 2 cities where it makes more sense to buy than rent

For rent-notMinneapolis has long been second only to New York City in the arts… now we can add housing to the list. New York has consistently had high rents, but it still made more sense to rent than buy… not any more. New York City jumped to the top of Forbe's ranking of worst cities to rent… followed by Minneapolis in the number 2 spot!

According to Forbes, Manhattan's rental vacancy rate is an astoundingly low 1%… but Minneapolis isn't far behind at 2.5%. Manhattan's rents are at an all-time high, 1.3% above the former 2007 peak. In Minneapolis the average monthly mortgage payment is over $100 less than the average rent.

According to CoreLogic, New York's shadow inventory is signficantly higher than that of Minneapolis. It is one of the states with the most mortgages over 90 days delinquent, while Minneapolis is one of the states with the fewest delinquent mortgages.

This means that New York is likely to experience more downward pressure on sale prices while Minneapolis is more likely to see prices rising… but rent prices are also rising, up 2.3% from last year. 

If you are thinking about saying goodbye to your lease to buy, now is a good time. Even in the best of markets prices always dip in the winter months… and rise in the spring. It could be that this winter will have the lowest prices for some time as the real estate market continues to slowly improve.

Sharlene Hensrud, RE/MAX Results – EmailMinneapolis Buyer's Agent

RELATED POSTS

 

 

Written By

I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

Related Posts

Make Your Home Cozy For Fall

🖨 Print Article Fall is such a wonderful time of year in the Midwest. The cool, crisp morning air brings a respite from the heat of summer, yet we can...

Our Favorite Local Home Decor Destinations

🖨 Print Article Our team at Rooms With Style is often asked for tips on where to source home furnishings. Each of us have at least one favorite “hidden gem”...

Subscribe to Our Newsletter for Market Updates & Mid-Century Modern Listings

Our weekly HomesMSP Update includes current local market information and a curated list of mid-century modern properties for sale, plus posts from an inspector, a lender, a stager, info about neighborhoods, life in the Twin Cities… even recipes!

Hidden

Blog Categories

Archives

Sharon and John Hensrud

About Us

The HomesMSP Team is committed to meeting you where you are and listening… really listening to understand you so we can use our extensive knowledge of the market and local neighborhoods to give you personalized service.