MINNEAPOLIS (WCCO) – A report released Thursday shows an increasing number of single-family homes are being rented in the Twin Cities, meaning fewer are available for purchase.
The report, released by the University of St. Thomas, shows single-family home rentals have doubled since 2008. The study says it’s a factor in a historically low supply of homes for sale in the 13-county Twin Cities area.
The St. Thomas report also indicates that the combination of a low supply of homes for sale with a high demand is raising the median price of home sales this year. Home prices are going up by as much as five percent, the report shows.
According to the report, Minneapolis had more than 5,800 homes as rentals in 2000. In 2013, that number grew to more than 10,000. The same is true in St. Paul, where more than 3,900 homes were being used as rentals in 200. That number grew to more than 7,400 in 2013.
The report shows the median sale price in February held steady at about $223,000 in the Twin Cities. Nearly 2,700 homes were sold in February, compared to more than 2,800 in January and 2,716 in February of 2016.