A recent report has found that the Twin Cities is the worst place to buy or sell a home in the nation, beating out high-demand cities like Los Angeles, Seattle, Denver, and Austin, Texas.
A new analysis of U.S. census data of the nation's 56 largest metros by the Minnesota Population Center found that in the last year, only 4.6% of all for-sale and rental housing in the metro was vacant, the Star Tribune reported.
John Schuster with Coldwell Banker Realty spoke with News Talk 830 WCCOs Cory Hepla about the housing market and how the shortage is having an impact on sellers and buyers.
"There truly just is a lack of supply of homes available in the Twin Cities and throughout Minnesota," Schuster said. "You put the house on the market, and in 72 hours, you have five dozen showings come through, you have two dozen offers and just a really big imbalance in our market."
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The pandemic has not helped the housing market, as Schuster shared that it has been put into overdrive as many look for new living arrangements now that they are working from home.
Schuster added that Wall Street and corporate buyers coming in and purchasing homes have also played a part in the shortage.
For those who like to look on the bright side, the issue doesn't appear to be going away anytime soon.
"I think we're going to be in this problem for a while, this scarcity of affordable housing and really entry-level housing," he said.
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A few things that could help the issue includes looking at zoning laws, building costs dropping, and excessive regulations, Schuster said.
"This is really kind of stemming from the fall out from the Great Recession," Schuster said. "Back in the early 2000s, many builders and developers went under. Many people in the building trades got out of the business, and today many builders say it's just not profitable with the risk associated to start a new development in today's world."
With trends constantly changing, Schuster shared that many looking to buy want bigger houses and yards because the importance of home has changed throughout the last year-and-a-half. However, Minnesota is behind on how many homes it should have.
Minnesota as a state is expected to be 40,000 houses and apartments short of what's needed over the next five years.
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As many also look to move further away from the city, into suburbs and the countryside, Schuster shared that zoning changes will allow for more growth in the Twin Cities as complexes are built to allow for more density.
According to Schuster, the market could change as he says what goes up must come down. But for those planning to sell their homes, Schuster says you need to have a plan in place.
"You really need to know where that next home is going to be, and that can be part of the process. You really need to meet with a trusted realtor to get that game plan put together," Schuster said. "You don't want to sell your home and then be homeless."
