Minneapolis isn’t exactly known for its luxury real estate market, but now buyers are looking to the Midwest for homes that offer both size and value.
The Twin City is quietly emerging with expectations of what a strong luxury market can look like in a region that has traditionally been ignored by affluent investors.
More space & lower prices
Cities like Miami or Beverly Hills have been usual targets for luxury buyers. However, Minneapolis has transformed into one of the most accessible luxury markets in the country with a sales rate that exceeds the national average.
Although the entry price for luxury in Minneapolis ($995,404) is below the national average price ($1.22 million), buyers receive considerably more space as homes priced between $1-$2 million average 4,148 square feet, whereas the national median is 2,990 square feet.
Different examples of luxury, ranging from multi-million-dollar estates to century-old homes and modern urban living, highlight the variety that
buyers can find in this new luxury real estate market.
The new hotspot for entrepreneurs
Target, UnitedHealth Group, Best Buy, and Land O’Lakes and a number of other Fortune 500 companies have anchored a corporate presence that draws executives and entrepreneurs to Minneapolis, and its Twin City, St. Paul. These companies are constantly looking to relocate their workers to the area, arriving with good purchasing power.
The medical sector is also fast-growing, meaning that high-income healthcare professionals have moved to the area, to look for large houses at affordable prices.
Together, both developments have strengthened the view of Minneapolis-St. Paul as a stable market filled with opportunity, to make long-term investment in luxury properties sensible.
The fast pace of Minneapolis’ luxury market
Luxury buyers in the real estate market typically take their time making purchase decisions, but Minneapolis is one of the few markets where luxury purchases move quickly, along with Heber, Utah and Boise, Idaho.
The number of days a property spends on the market has decreased by 10.4%, an indication of high demand. The explanation is clear: buyers are moving quickly for fear of missing out on a great deal.
While listings are booming in Minneapolis, other cities within the country have seen luxury prices fall (-2.2%), and properties that remain on the market for months without selling.
Minneapolis is moving in the opposite direction: faster, more efficient purchasing.
The future of the Minneapolis luxury market
Minneapolis’ advantage is sustainable.
Despite the increase, the city will continue to offer prices below the national average. This will ensure the emergence of more consumers seeking smart and valuable luxury.
Lake Minnetonka will remain the true center of luxury in the county. With this new phase of investment in the city, a considerable amount of capital is anticipated in desirable waterfront properties. This focused demand will lead to a potentially significant increase in prices in areas adjacent to the lake.
