Downtown! Is It Where Your Next Home Is Waiting?

Downtown! Is It Where Your Next Home Is Waiting?

A lot of real estate buzz focuses on single family homes, especially those in the suburbs. But more and more frequently, Minneapolis and St. Paul buyers—especially younger first-time homeowners—are finding their perfect abodes downtown.

In 2012, an industry study found that 77 percent of US Millennials plan to live downtown. It’s easy to see why. Urban areas offer lots of activity. City dwellers can walk to the hottest restaurants and newest shops. Nightlife and other entertainment are just a few blocks away, too. Public transportation makes it easy to get around when the weather isn’t cooperating.

Is Downtown Affordable?

One common myth about downtown living is that it is prohibitively expensive. Many people think it’s cheaper to rent than to own a loft or townhome in the city.

Though perhaps that’s true in some parts of the country, in Minneapolis and St. Paul, buying a home downtown is more favorable. In Minneapolis, renters who choose to buy may save about $250 off their monthly rent. This savings grows the longer buyers stay in their home. St. Paul renters can expect to save more than $100 a month if they buy.

There are costs associated with city living. You will likely pay a homeowners’ association (HOA) fee in addition to utilities, Internet, and cable. Homeowner’s insurance is more expensive than renter’s insurance, but is more comprehensive. But for buyers who want to be close to the action, the benefits of being downtown outweigh the costs. 

Where Should I Look in Minneapolis?

Downtown Minneapolis is divided into Downtown East and Downtown West. The Loring Park, Elliot Park, North Loop, and Nicollet Island neighborhoods are also located within the 394/94/35W downtown area. Downtown Minneapolis housing includes old warehouses converted into lofts, condominiums, and older single family homes.

Buying a home in any of these neighborhoods gives you easy access to restaurants, bars, museums, nightlife, Nicollet Mall, Target Field, Target Center, Orchestra Hall, and the new Vikings Stadium. The blue and green light rail lines run through the area, too.

Where Should I Look in St. Paul?

The downtown St. Paul neighborhood is bordered by I-94 in the north, the Mississippi River to the south, Highway 52 to the east, and Kellogg Avenue to the west. Downtown St. Paul housing includes new construction condominiums and lofts.

Living in downtown St. Paul, you’ll be within walking distance of restaurants, bars, the Science Museum of Minnesota, Mears Park and the St. Paul Farmer’s Market, the Fitzgerald Theater, Xcel Energy Center, and the new Lowertown CHS Stadium. Like Minneapolis, downtown St. Paul is connected to the metro’s light rail system. 

If you’re renting downtown and want to maintain your lifestyle and own a home, now’s the time to chat with a Realtor®. Contact Brooks Johnson, your friend in real estate, today.