Home prices are up 66% in the Lake Nokomis area since 2012. The median priced just reached $240,000. This is a huge increase in only four years. For a area that used to be known as a first time buyer spot I am starting to think that may no longer be true. I see a lot of young people moving into south Minneapolis, I feel like there has been a huge group of buyers between the ages of 27-35 that have held off on purchasing over the last 5 years until now. They would have bought a few years ago but they were still recovering from the recession and nobody wanted to touch real estate after the bubble popped in 2009.
If there was one place that I could live other then Southwest Minneapolis where I wanted to have a classic Minneapolis lifestyle then the only place I feel you could go would be Lake Nokomis area. Northeast Minneapolis is its own experience and so is downtown Minneapolis. When you live in Northeast its like you are experiencing Minneapolis from that perspective.
Lake Nokomis is the classic Minneapolis experience because Minneapolis is known for a few things and Lake Nokomis incorporates all of them.
1. Lakes. There 9 lakes in Minneapolis. All of them are in south Minneapolis.
2. Parks. We have more parks then any other state in the country.
3. Walkable. Relative to a lot of other big cities I have been to I feel like Minneapolis is very walkable. People like that.
So why is south Minneapolis the next Edina? Everybody wants to live in Edina. I have never had a customer or client, well maybe a few, that said they wouldn't buy in Edina. Some might not want to live there, but they all would invest there if they could get a good deal. My point is that since everybody wants to live in Lake Nokomis or south Minneapolis I think homes prices are going to continue to go up no matter what happens with the economy.
In the long run there are only a few places in Minneapolis where you can get to a lake in under 10 minutes. Over time these are going to be the most high demand areas because most people prefer to live closer to bodies of water versus not. I see that area developing great schools, it already has the geography, and grocery stories. It will become like Edina. Home prices will be around $400,000 and some will be $800,000. This will probably be around 2032. At the end of the day I am very bullish on this area and the key will be to find a great piece of land and structure that will pay off the most over time.