Thanks to an improving U.S. economy, rising employment and more income flowing into consumer pockets, many real estate markets could be considered healthy. Minneapolis is one of them, according to Gathering Strength: The Healthiest Markets for 2011 from Builder online. The Minneapolis-St. Paul metro was ranked sixth according to their index. Here is what Builder had to say about the Twin Cities area’s real estate market:
2011 Building Permit Forecast: 9,403
Percent Change in Building Permits: 66%
The Little Apple appears poised for growth. Last year’s strong rebound in permit activity–filings were up 22 percent in 2010, led by a surge in multifamily–is expected to accelerate in 2011. If builders actually pull 9,403 permits this year, as Moody’s forecasts, that would equal half the volume of 2005.
Foreclosure filings actually fell in Minneapolis last year, though banks still have inventory to work through. Median existing home prices, which stood at about $167,000 at the end of last year, have fallen only 27% from their peak in 2005. The market enjoys decent household growth (1.77% is forecast for 2011) for a Northern city, though most of it comes from natural growth. It still has a hard time attracting residents.
The housing industry in Minneapolis, a major hub for medical technology, is supported by a relatively high median income level among residents. Median incomes reached nearly $66,000 last year, and Moody’s expects another 2% increase this year, which would be a marked increase over the pace of the last seven years.
The top five were as follows:
5. Gulfport-Biloxi, MS – 2011 Building Permit Forecast: 1,783 – Market Health Indicator: 78.1
4. Huntsville, AL – 2011 Building Permit Forecast: 4,283 – Market Health Indicator: 80.3
3. 3. Durham-Chapel Hill, NC – 2011 Building Permit Forecast: 3,250 – Market Health Indicator: 81.5
2. Austin-Round Rock, TX – 2011 Building Permit Forecast: 11,079 – Market Health Indicator: 86.5
1. Raleigh-Cary, NC – 2011 Building Permit Forecast: 9,604 – Market Health Indicator: 86.9
To read about the top 20 healthiest markets for builders in 2011, view the rest of the article here.