MINNEAPOLIS - When the Henry family first began their Twin Cities house hunt in April, they found big price tags and little selection, feeling lucky to find a home on their very first visit.
“It was pretty small to pick from,” said Sarah and JR Henry, who are moving with their two young sons to North Oaks from Tulsa. “We just looked two days.”
A new study shows their purchase is not unusual. Wisconsin-based housing firm Abodo says more than 42 percent of millennials in Minneapolis own a home, the highest percentage of that age group of the nation's 45 largest metro areas – and 10 percent higher than the national average.
“They know what they want,” said JJ Korman, agent/owner at Korman Realty, who frequently represents millennials. “They decide things quickly, they tend not to deliberate a long time. They go after it.”
Korman is not surprised, saying many of his clients are young professionals who want to own. He says many see the Twin Cities as a long-term home, and that demand far outweighs supply.
“There’s a lot of buying power out there,” said Korman. “We just wish there were more homes to fill the void.”
That void may in part be the reason for another trend in Twin Cities real estate: new home construction. Last month, it hit a 10-year high with 634 permits, most for single-family homes. Local real estate agents say lots of those are entry level, a push by builders to fill the void of houses under $300,000.
“The rents have gotten so crazy, and people are saying, 'I could buy for less than rent,'” said Dave Hackenmueller, a Remax Real Estate agent in Plymouth.
Hackenmueller says that’s especially true because of current interest rates, which almost surely help drive both trends.
“Rates are at 4 percent and we know they're probably going to go up some,” said Hackenmueller. “So people are saying, ‘We've got to do it now.’”