Updated: 12/27/2013 6:15 PM KSTP.com By: Beth McDonough
For most of us buying a home is the biggest purchase we'll ever make.
And KSTP learned Friday, the metro happens to be among the best places in the country to invest your real estate dollars.
Two organizations, Forbes Magazine and the Builder's Association of the Twin Cities, report our real estate market is making a come back. They cite housing values and people's net worth are up, unemployment is down and renters are feeling better about buying.
But inventory is so low, if you want a home, you might have to build one.
Demand for one is creating a boom in business for developers that they haven't seen in a decade.
KSTP found contractors hard at work, even though it's the holidays. They're trying to keep up with the rebirth in residential real estate, "there's a tremendous pent up demand it's starting to reveal itself in the market," according to David Siegel, the CEO of the Builder's Association of the Twin Cities.
Newly released numbers from the Builder's Association show in 2013, it doled out 5,339 permits to construct more than 10,000 housing units in a 13-county area. That's up 14 percent over last year and a huge increase since the recession. Those kind of numbers put the metro on the map with Forbes Magazine for best places to invest your real estate dollars.
Facts and figures mean everything to once struggling developers, like Dan Hunt of Hunt Associates, "it will be our best year ever."
Hunt has permits to build apartment rentals in Minneapolis and St. Louis Park, plus replace woods with townhomes for sale along Vernon Street in Edina. He's taking advantage of both the rental boom and homeowners eager to downsize, plus continued low interest rates that are driving the demand, "there are so many great things about living there, restaurants, shopping, people don't want to leave after living in Edina a long time."
Hunt will break ground on the project called, The Row of West Edina in April. The Builder's Association says Woodbury leads the metro in permits, followed by Minneapolis, Brooklyn Park and Lakeville.
The recovery is widespread, so too, are the benefits for everyone, whether you're in the market for a home or not, "when housing grows, all kinds of other related industries benefit," according to Siegel."
The Builder's Association expects 2014 to exceed 2013.
See where your city ranks here.