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Soaring skyscraper a positive sign for Minneapolis housing market

The 42-story building, Eleven on the River, is scheduled to be completed next year and will be the tallest residential building in Minnesota.

MINNEAPOLIS — The tallest all-residential building in Minneapolis is set to be complete by 2022.

It comes at a time when doubts surrounding downtown living have increased, due to both the pandemic and recent unrest.

Eleven on the River is set to give never-before-seen height to housing. With 42 stories, it will be the tallest all-residential building in the state.

"We just topped off on April 8th," said John Wanninger, a broker for Eleven.

Two-thirds of the building's condos are already sold, according to Wanninger, despite the building still being under construction.

"I think a lot of people would be surprised about the demand, especially recently," he said.

Surprising, considering the year-plus downtown has had, with the pandemic and unrest.

Eleven isn't the only building set to scrape the sky: RBC Gateway in Nicollet Mall will be over 500 feet tall and will feature residential living, in addition to a hotel and office space.

"That's a good indication that if those are selling and they're not even completed, that those buildings are still good to build and people are wanting them, there's a demand," said Twin Cities realtor Troy Sanders.

While demand for buildings like Eleven may be a positive sign for downtown, there's still been some hesitancy for those looking to make the move, even despite an extremely hot housing market in the suburbs.

"If you're selling a condo in downtown Minneapolis, the realtor should give you the right expectations that it might take several months," said Sanders.

While downtown deals remain elusive, Sanders said buyers can be pickier, and may be able to write an offer with less competition from others.

"You may not have to go that 30, 40, 50 over list price," he said.

If downtown is your goal, Sanders suggests working with a realtor that specializes or even lives downtown.

"So you really know your investment strategies, your pricing strategies, and knowing the outcome and the future," he said.

Sanders believes if the housing market remains the way it is and if interest rates stay low, the downtown housing market should be better by 2022.

Wanninger is also optimistic about a downtown rebound.

"I see a full recovery of downtown Minneapolis," Wanninger said.