While people live all over the great, big state of Minnesota, the biggest metro area is Minneapolis-St. Paul, Minnesota, housing some 3.7 million people. It is the second largest economic center in the Midwest, behind Chicago.
The American economy has had some challenging years, to say the least, and according to the Minnesota Housing Partnership, nearly a quarter million Minnesotan households pay over 50% of their income on housing. Ideally, people should be paying about 30%– not over 50%.
Minnesota, in general, has a tight housing market—there just aren’t that many vacant apartments, for instance, in the Twin Cities metro area.
Keep in mind that Minnesota has a diverse enough economy that it isn’t in as bad a shape as many other states. Therefore, there’s more of a demand for Minnesota housing because the state has two things others want: jobs and population growth.
One of the major reasons Minnesota housing is lacking in space for people is that building permits issued for multi-unit and single-family homes hit extreme lows in the past couple years. In other words, the population grew, but the housing stock did not keep pace. And, like many other cities, developers tended to chase the well-heeled crowd, constructing expensive, luxury apartments, condos and homes, such that affordable places to live became harder and harder to find.
Thankfully, though, there is encouraging financial help available for low income residents of the state. For instance, did you know eligible Minnesota Housing borrowers have access to three down payment and closing cost loan options? In other words, there is help “out there” to help people achieve their goal of successful home ownership. In some cases, money is loaned to help home buyers rehab properties that need some repairs—a good way to improve the housing stock affordably.
A quick call to Lake Area Mortgage at 651-209-2900 can connect you with a wealth of information regarding affordable Minnesota housing opportunities available at this time.