Minneapolis Real Estate Market Summer Update
The death of George Floyd and the protests and riots that followed hit Minneapolis like a hard unexpected punch to the face. As of right now we don't know what will happen, but I believe most people who live in Minneapolis want to live in peace. In terms of real estate prices the damage from the riots is not good. There will be a lot of insurance checks cut and some people will win financially, but others will lose a lot. Most of the buildings will be rebuilt for the same purpose or the land could be used for a totally different purpose. A lot of work needs to be done and it will take many years to rebuild.
In general, people like stability and safety when they are looking to invest their money into real estate. If you look at a map of Minneapolis you can see the lower crime areas have higher home prices. So if Minneapolis is seen as a safe place to invest, then that is good for the real estate. If investors think it is not so safe then they will double think if they want to invest in the area.
As of right now I think most buyers in south Minneapolis are looking for a deal. Inventory is still extremely low under the $350,000 price range. The median value right now in south Minneapolis is $305,000. Just 5 years ago it was $223,000. The area on Lake Street that got hit with the most damage is in an opportunity zone. This is a big bonus for anybody that wants to develop land in that area, but I think investors are going to think twice about spending money. They are going to want to know their investment is going to be safe. So we will have to see how it plays out over the next 12-24 months.
I think there is going to be more demand for homes in Nokomis and areas that are farer south of Lake Street. Being close to the lakes, the creek, and the lower crime areas of south Minneapolis will be more appealing in the short and long term. If you need buyer representation or seller representation I would be happy to help.