Minneapolis 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 – Email – Minneapolis Buyer's Agent
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- Home price gains in the Twin Cities surpass much of the nation
