How Gentrification is Affecting Housing Prices in Minneapolis-St. Paul
The effects of gentrification have been on the rise in Minneapolis-St. Paul in recent years. If you’ve been reading the paper, then you know Twin Cities’ rents are rising despite developers adding to inventories. As of May 2020, the average rent in the Twin Cities was $1867.
It could have something to do with the dreaded G-word – gentrification. Whether you use the G-word or another name – urban revitalization, improvement, investment, progress – it’s fast becoming just as much an issue in the Twin Cities as it is in Brooklyn and San Francisco.
When a formerly depressed neighborhood suddenly becomes hot, rapid growth can transform an area almost overnight. But it can also bring expensive growing pains. Is gentrification making Minneapolis-St. Paul unaffordable?
Gentrification can happen quickly. As higher-income buyers move into a growing neighborhood, the cost of living goes up. Rents typically escalate, forcing poor and working-class families to move elsewhere.
For many residents, the effects of gentrification can quickly become a political issue. The question is whether the benefits outweigh the drawbacks.
Top 10 Gentrifying Cities in the USA
Nationwide, only about five percent of urban tracts that could be gentrified are actually going that route, according to the Denver Office of Economic Development. But in the top gentrifying cities, new higher-income residents are displacing the existing lower-income residents at a much more rapid pace.
The top 10 fastest-gentrifying cities are:
- Washington D.C.
- San Diego, CA
- NYC, NY
- Albuquerque, NM
- Atlanta, GA
- Baltimore, MD
- Portland, OR
- Pittsburgh, PA
- Seattle, WA
- Philadelphia, PA
How Gentrification Can Help Homeowners
As property values rise, homeowners often find themselves stuck paying ever-higher property taxes. Those who can’t afford the taxes must often sell their homes. But there is an upside: the opportunity to profit handsomely from a higher selling price.
Homeowners who stick around, meanwhile, can enjoy the economic benefits of gentrification, including new shopping, new restaurants, new job opportunities, better schools, and lower crime rates.
Gentrification in Minneapolis-St. Paul
Where is it happening?
The effects of gentrification have been seen in the twin cities to a great extent over the last 15 years. In the city center of Minneapolis and its adjacent neighborhoods, as well as the areas along St. Paul’s Green Line, rent has been outpacing income, with wealthier buyers purchasing homes.
This is according to research from the University of Minnesota, part of a study about the effect of gentrification in the Twin Cities.
How to Buy in a Gentrified Neighborhood of Minneapolis-St. Paul (Without Spending a Fortune)
Without a doubt, gentrification is raising home values across parts of Minneapolis-St. Paul, and finding a bargain isn’t easy. By the time a neighborhood starts heating up, real estate prices are already shooting skyward. But that doesn’t mean it’s too late to buy a home at an affordable price.
If you’re looking to buy a home, look no further than We Buy Ugly Houses. We have numerous properties for sale. And with us, there are no additional fees. Give We Buy Ugly Houses Twin Cities a call today to get in on the ground floor of the hottest new neighborhoods in town!
*Updated June 2020. Originally posted May 2017.