It doesn't happen very often where, in a compact period of time, I see a wealth of reliable data released that shed such sunny light on the decision to buy a home in the Twin Cities but lately that has been the case. If you've been contemplating such a decision, here are 3 great reasons to feel good about your decision and its timing in ascending order.
Reason 3: CNBC Ranks Minnesota as a Top State for Business.
CNBC’s announcement may seem boring, and it definitely is, but from the perspective of a homebuyer or homeowner, it’s critical. This is because we’ve seen how a local unemployment rate is often tied to the value of homeownership. Here’s a recent illustration:
This business climate has led to a top 10 unemployment rate creating a top 10 environment for job seekers leading many to set roots and raise their families through our top 10 public school system.
If this economy is generally considered to be a recovering, I can’t wait to see just how good this can get for the Twin Cities.
Reason 2: Minneapolis and St. Paul are the 3rd and 4th Ranked Cities for “Best Cities for Quality of Life” by NerdWallet Finance.
NerdWallet recently announced a ranking of 100 major cities. Their methodology was unique in that it focused on, “income and health benefits, local economic strength, as well as work-life balance to find the best places for quality of life.” Minnesota and Nebraska were the only two states to have two cities represented in the top 10.
Reason 1: It's Officially Unaffordable to Rent in Almost All Major Cities.
I've seen people bend statistics in nearly any market to make the case for homeownership but when Zillow points out that, “homes remain more affordable to buy in 94 of the country’s 100 largest metros,” that “renting is more expensive than ever in 88” of them and the Secretary of Housing and Urban Development confirms this calling it the “worst rental crisis in this nation, ever” then it’s fair to say there’s something meaningful in the numbers.
The best way to illustrate this is an analysis of the Net Cost of Homeownership. While you can run your scenarios using market rates, PMI calculators (mobile apps are better) and taxes from home listings using this calculator, comparing the median rent to a monthly payment on a typical purchase of a median home really drives the Twin Cities rent vs. own point home:
Net Cost of Home Ownership (sample 9/1/2014)
A decision to buy a home is deeply personal and your personal reasons should ultimately dictate the decision of when and why to buy a home but if your time is now, hey, . . . . doesn't it feel good to be smart?
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