Welcome to today’s real estate news roundup! In the housing market, realtors and home builders in the New Ulm area are facing challenges due to a shortage of available houses and rising costs. First-time homebuyers are finding it difficult to secure affordable homes, with properties being snapped up within hours of being listed. Meanwhile, across the United States, the surging costs of starter homes have become a growing concern. With over 200 cities now having an average price of over a million dollars for a typical starter home, the dream of homeownership is becoming increasingly out of reach for many. However, there are success stories to be found. Take, for example, the story of Barb and Jack, homeowners of a beautiful lakeside residence in Minnesota. With the help of Nor-Son Custom Builders, they transformed their cabin into a cozy and charming retreat. Additionally, we explore the retreat of home builders in the Twin Cities and the cautious approach they are taking amidst uncertain economic conditions. Lastly, we delve into the success of Minneapolis in creating more affordable homes and vibrant communities, and how Columbus can mirror that success by embracing similar changes. To read more about these stories and stay updated on the latest in the real estate market, click on the respective links provided.
Interest rates, builder costs weighing on housing availability
Realtors and home builders in the New Ulm area are facing challenges due to a shortage of available houses and rising costs. Many affordable homes are being snapped up within 24 to 48 hours of being listed, leaving first-time homebuyers struggling to find suitable options. The high interest rates, currently around 7%, are also making it difficult for buyers to afford homes. Builders are hesitant to construct new homes due to the high construction costs and uncertain market conditions. However, there is hope that more housing will become available in the future as interest rates decrease and rental options increase. To learn more about the impact of interest rates and builder costs on housing availability, click here.
Uncovering The Surging Costs Of Starter Homes In The U.S.
The cost of owning a home, especially a starter home, is on the rise across the United States. According to recent research by Zillow, over 200 cities in the U.S. now have an average price of more than a million dollars for a typical starter home. Just five years ago, this number was less than 100 cities. This surge in prices can be attributed to a housing shortage that has worsened during the pandemic.
In Minnesota, the city of Minnetonka Beach stands out with its sky-high real estate prices. With less than 250 homes and a population of only 535 residents, the average price of homes in Minnetonka Beach is a staggering $1.008 million. This puts the city on the list of communities where starter homes have reached exorbitant prices.
To learn more about the surging costs of starter homes in the U.S. and discover the full list from Zillow, click here.
A Happy Place on Bay Lake by Nor-Son Custom Builders – Midwest Home
Barb and Jack, homeowners of a rustic Bay Lake residence in Minnesota, decided to embrace lakeside living and enlisted the help of Nor-Son Custom Builders to remodel their cabin. The project involved tearing down the original cabin and rebuilding it while preserving the original foundation and floor system. The design aimed to maximize lake views and capture summer sunsets, using reclaimed wood materials and maintaining a century-old look with modern elements. Sustainability was also a focus, with energy-efficient features incorporated into the home. Barb took the lead on interior design, creating a cozy and charming atmosphere filled with her own artworks and cherished decor. The lakeside setting provides inspiration, and the couple enjoys their porch and lakeside patio for entertaining guests. After two years of anticipation, Barb and Jack are thrilled to call this serene summertime escape their happy place.
To explore more about this beautiful lakeside residence, click here.
Twin Cities home builders keep retreating, wary of overstock in an uncertain economy
Home building in the Twin Cities has seen a significant decline this year, with permits for single-family houses down 38% compared to last year. Apartment construction has also been hit hard, with an 84% decline in permits issued for rental apartments. The decline in construction is part of a steady trend following a year of record-breaking construction. Higher mortgage rates, which have reached around 6-7%, have dampened demand for new homes. However, previously owned homes have seen a smaller decline in sales. Builders and rental developers are taking a cautious approach, pausing projects to avoid unsold inventory and excessive debt in an uncertain economic climate. To learn more about the retreat of home builders in the Twin Cities, click here.
Success in Minneapolis will be mirrored: Columbus’ Zone In hopeful
Anton Schieffer, a board member for Neighbors for More Neighbors, shares the success story of Minneapolis and its efforts to create more affordable homes and vibrant communities. Minneapolis implemented changes to encourage housing construction, including allowing more homes along transit corridors and repealing parking mandates. These reforms have led to stabilized housing costs, decreased homelessness, and improved housing stability for residents. Schieffer believes that Columbus can achieve similar success by embracing these changes and allowing more homes of different sizes and prices to meet the changing needs of the community. To learn more about the success of Minneapolis and the potential for Columbus, click here.