The Minneapolis Fed’s recent article about housing in MN provides data supporting some positive trends. If you’ve lived in the state for a while, and know people who’ve moved away to other similar cities and then returned, you have firsthand points of reference to the favorable cost of living we have here. Mid-sized cities like Denver, Portland, and Dallas are more expensive than the Minneapolis-St Paul metropolitan area. Here’s a chart from the article which says as much:
This is not to say that everyone within our territorial boundaries has adequate shelter. And thus it is fortunate that the Fed is putting some shape around the goal of increasing the number of homes available. Because, of course, more supply translates into better pricing. From their analysis, it appears that the region is on track so far.
I was in a meeting of realtors once where a peer did not readily accept that more units meant better pricing. And, although not voiced specifically in this manner, I think what she was getting at is that if the structures don’t match the need of the households, then there may not be an increase in supply. No increase in inventory—no better pricing.
This points to the benefit of being able to match segments of the market. How many shelters have a physical structure which matches the need of this type of household? Do those inventories line up or are they disjointed?
It’s no wonder data is valuable. There’s always more data necessary to understand our world.
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