Minneapolis Housing Market Reality - Are Homeowner's really "fleeing" the city?  
By Minneapolis Association of Realtors (MAR) President, Linda Rogers     

This month we thought this trusted professional could break it down for you best. This has been a most unusual year in our community. With the onset of the COVID-19 pandemic this spring, we have made major changes in how we go about our lives and work. Real estate has been considered an essential activity throughout this period and REALTORS® have adjusted their business practices to ensure the safety of consumers. While the housing market dipped during the initial weeks of the pandemic, activity has been increasing as people feel more comfortable with buying and selling homes.

On Memorial Day, our world was rocked by the senseless killing of George Floyd, an unarmed Black man who died while being restrained by Minneapolis police. The civil unrest that followed damaged or destroyed hundreds of businesses in the city and prompted calls for police reform. The Minneapolis Area REALTORS® (MAR) stands in unity with those calls for change and is working on several fronts in pursuit of its fair housing goals.

Since Mr. Floyd’s death, there have been several misleading claims and opinions on various social media platforms asserting that Minneapolis residents are fleeing the city. Too often—particularly nowadays—opinions are accepted as hard facts. To assess the veracity of these claims, it is important to conduct an analysis of the data that could either confirm or disprove the speculation. What follows is the result of that analysis.

MAR is committed to providing factual information to members, policymakers and consumers so they can make educated decisions and are empowered with the best and most accurate data.

Click here to see the data supporting Linda Rogers' Conclusion

In summary, a closer examination of the data does not support claims that the City of Minneapolis is seeing a disproportionate increase in seller activity in Minneapolis in the weeks following the unrest. Recent market activity in the Minneapolis isn’t unique from other surrounding cities. Well-presented, turnkey properties in Minneapolis very often have multiple offers. Even if a disproportionately large share of homeowners were to list their homes, the insatiable demand is likely to absorb those extra listings, likely limiting any negative impacts on values.

Moreover, there are a multitude of factors impacting market dynamics at any given time, including recent disruptions from COVID-19. Millennials may also be listing smaller properties in the city in search of more square feet and a larger yard in the suburbs. Record-low interest rates have encouraged some buyers to seek out larger homes with a second (or third) home office—a product largely found in the suburbs. A shortage of existing homes closer in has also forced buyers to look further out, including new construction properties. Since one in three condo sales in the metro occur in Minneapolis, the city will be more impacted by any shifts in the condo market—another dynamic unrelated to recent unrest.

We remain hopeful that our policy discussions and general discourse will become increasingly rooted in facts and data. Data has the power to get all stakeholders on the same page. Leveraging said data everywhere from corporate boardrooms and the halls of congress to our homes and communities will better inform decisions and lead to better outcomes for our region, state and nation.

Rogers, Linda 2020 MAR President, Minneapolis Housing Market: Are homeowners really “fleeing” the city? [White Paper] (July 2020), Minneapolis Association of Realtors.