Since the 2009 recession, Minneapolis has recovered strongly and experienced excellent job growth and stability. The city’s unemployment rate is the lowest in the entire nation, at 2.3% in October 2018. That is better than the unemployment rate for the state of Minnesota and for the US as a whole, which was 3.9% for the same period.
People who are looking for good jobs in the Twin Cities will find them here, at one of the many Fortune 500 companies who make their home in the area or one of the diverse economic sectors such as manufacturing, education, government, health care, and finance.
With all these good jobs and low unemployment, the real estate economy is doing quite well. More people than ever can afford to buy a home in the Minneapolis and St. Paul area. At TwinCity Lending, our job is to get you into the home of your dreams by finding favorable mortgage financing you can afford and sustain. While the economy is strong, it’s a good time to put down your roots in the Twin Cities. Contact us to learn how to afford a home in the area.
It’s all well and good to say that you can afford a home in the Twin Cities, but let’s take a look at the numbers. When you examine the cost of living in Minneapolis, the average home prices, and jobs available in the area, you’ll soon learn why homeownership is not just a pipe dream for Twin Cities residents.
Affording a Minneapolis Home
The median home price in Minneapolis was $257,100 in 2018. To qualify to purchase a home at this price, you typically need a combined household income of around $75,000 annually, and twenty percent down. According to the Census ACS 1-year survey, “the median household income for the Minneapolis, St. Paul, and Bloomington Minnesota metro area was $76,856 in 2017, the latest figures available”.
The figures quoted above put the Twin Cities’ median household income at around “$16,520 greater than the US median household income” and $8,468 higher than the median household income for the state of Minnesota. These numbers mean that the average Minneapolis household can afford to purchase a home which is great news for those who want to achieve the dream of homeownership.
And while $257,100 is the median home price point, there are properties below and above that midpoint. There is are homes in the Twin Cities for high wage earners who want luxurious and high-end properties and for lower-income families who wish to realize the dream of homeownership.
If we eliminate St. Paul and Bloomington from the calculations, the median family income for Minneapolitans was $96,807 in 2017, according to the same survey. With that income, it is easier than ever to buy a home in the city. You will qualify for mortgage loans for homes over $350,000 and be able to put less money down. There are hundreds of home options for you to choose from in Minneapolis at that price point, from trendy lofts to townhomes to single-family suburban homes.
Good Jobs in Minneapolis
How do you determine what makes a “good job?” It depends somewhat on the person, but in general, a good job means a living wage, competitive benefits, good working conditions, and opportunities to advance. That’s according to Bruce Corrie, a Concordia University economist who studies employment and cost of living.
There are many types of these jobs available in Minneapolis, across many different economic sectors. One of the most in-demand industries in the area is health care. Companies are hiring registered nurses, nursing assistants, licensed practical nurses, and personal care aides. Radiologists, sonographers, and other medical technical positions are in high demand also.
The median wage for an RN in Minnesota is $72,000, and higher in Minneapolis proper. Registered nurses can afford an average Minneapolis-area home as a single homebuyer. Medical secretaries and assistants earn a livable wage at around $35,000 to $40,000 annually — a tidy sum to contribute to a household income and qualify for a home.
In addition to health care, other in-demand occupations in the Minneapolis area are in information technology (IT), finance, manufacturing, and construction. The city is experiencing a real estate boom, with lots of new construction and renovation work to convert former industrial structures into beautiful urban living spaces.
If you’re looking for jobs in Minneapolis, MN, many Fortune 500 companies are hiring. US Bancorp has its headquarters in the city and employs about 13,000 people in Minnesota. Target Corporation also has its main corporate offices in downtown Minneapolis, and 17 other of the largest US companies also call the city home.
From 3M to Best Buy to United Health Care, General Mills, and Hormel, there are plenty of well-paying jobs for college graduates. The city also has a strong manufacturing base as well as retail, leisure, construction, and truck driving careers available for residents who do not have a bachelor’s degree. In all, the job market is plentiful for living wage jobs that allow people to afford a home.
Cost of Living in Minneapolis
It costs a bit more to live in Minneapolis than the United States on average. The cost of living index measures 100 as the average cost of living in the nation; Minneapolis sits at 116 overall, and the state of Minnesota is slightly more expensive than the national average at 106 on the index.
Some things are cheaper in Minneapolis, such as groceries (93 vs. 100) and healthcare is markedly less expensive in the area at 87 on the index. Housing is the most significant expense for Minneapolis residents, and the cost of living index rating of 138 reflects that. However, you’ll recall that the average household income in the area is also much higher than the state and national averages, helping offset the higher cost of living with higher wages.
Contact TwinCity Lending and Become a Homeowner
As you can see, if you have a job in the Twin Cities area, you’re living and working in a place where the dream of homeownership is possible. There are many affordable housing options for Twin Cities residents and homes available in a variety of price ranges and budgets. Get in touch with us today and let us help you find your way to homeownership in Minneapolis or St. Paul.