First, let’s define affordable. Housing affordability means that an index of 120 means the median household income was 120% of what is needed to qualify for the median-priced home. The higher number, the more affordable. The average price for 2017 was $271,900, with an index of 170. Translated, $271,900 is a comfortable purchase for average incomes.
It seems impossible, but yes, there is new construction in Minneapolis under $330,000. Your first thought is that it might be shoddy, or in the middle of gangland. Not so. Here’s what’s happening; the City of Minneapolis designated 100 lots for Green Homes North Project Locations in 2016 to revitalize North Minneapolis. Development always happens in phases, some of those new homes are under construction, or to be built.
What gets interesting is that a separate development, Parkside at Humboldt Greenway, partnered with Greater Minneapolis to build on 65 lots. No one thought that they could bring price and quality together, but they did. Twenty-eight impressive homes have been sold, 22 are occupied, and 6 are under contract.
Parkside offers five floor plans ranging from a two bedroom rambler with 1462 finished square feet, to a two story, 3 bedrooms at 1975 fsf. All have 2+ bathrooms, and full basements that can be finished. Pricing runs $289900 to $322900, with semi-custom options.
What do you get for your hard earned dollars at Parkside? A lot more than you’d expect. First of all, it is Green Path Certified which means that the home is built to save you money and energy for many years to come. The furnaces are 92% High Efficiency Bryant, 200 AMP Electrical panel (because we are never going to need less electricity), a 50 gallon water heater, and a Bryant High Efficiency A/C. The exterior is stone and LP siding, not vinyl. It comes with a two car detached garage, engineered wood flooring, huge and abundant Anderson windows, 9 foot ceilings, tiled floor bathrooms, tiled showers, and a boot bench at the back door. The list goes on.
The kitchens are gorgeous, 42” cabinets, granite counters and island, a huge stainless steel under mount sink (means it set in under the countertop), soft close drawers, a pantry cabinet, and energy efficient Whirlpool stainless appliances. All the floor plans are open and flexible. A buyer has cosmetic options.
If you’ve been looking at homes at all, especially new construction or rehabbed homes, you’ll recognize that they are truly offering a bargain. In South Minneapolis you are paying for the lot, and I’ve seen a number of ‘new homes,’ rebuilt on the old foundation stuffed with insulation. Most of the time new urban construction is one house at a time. Typically, an old home will be taken out or rebuilt in an existing neighborhood. In this case, Parkside is an entirely new neighborhood of 65 homes with new streets, alleys, and green space. Unlike many projects in the city, there is no income restriction which makes the loan process easier.
Right now, there are still about 40 homes available that are not in multiple offers. Yet. But as the weather heats up, so does the market. Give me a shout, and let’s build you a new home.