Weekly Market Activity Report For Week Ending September 28, 2019
For Week Ending September 28, 2019
Minneapolis, Minnesota (October 7, 2019) - The Commerce Department reported sales of newly built homes nationwide have surged 18% compared to a year ago and housing starts and building permits reached a 12-year high in August. This surge in both sales and new construction shows strong market confidence by both buyers and builders. However, further increases in new construction starts are still required to meet demand and bring more balance.
In The Twin Cities Region, Fot The Week Ending September 28:
• New Listings decreased 3.3% to 1,546
• Pending Sales decreased 3.0% to 1,112
• Inventory decreased 3.6% to 12,716
For The Month of August:
• Median Sales Price increased 7.0% to $286,875
• Days on Market increased 2.5% to 41
• Percent of Original List Price Received decreased 0.2% to 99.0%
• Months Supply of Homes For Sale remained flat at 2.6
Minneapolis Housing Policy Committee Votes to Study Rent Control
October 5, 2019 Tags: Announcements Government Affairs
The Minneapolis City Council Housing Policy & Development Committee voted to direct city staff to contract with one or more consultants (vendors) to undertake an economic impact analysis regarding rent stabilization as a component of housing policy in Minneapolis.
The contract deliverables generally should include the following:
Establish a baseline and identify key factors for assessing annual rent increase caps as a rent stabilization policy in Minneapolis, which may include:
- Distribution of rent burden, rent cost trends, rental vacancy and turnover
- Composition of housing stock including age, ownership and geographic distribution of rental property
Analyze these key factors within the Minneapolis context to understand potential impacts on renters and building owners. Key factors could include:
- Financial analysis of return on investment for rental property owners
- Economic impacts to overall local economy and housing supply in the short and long term associated with capping annual rent increases
- Housing stabilization outcomes for tenants
Provide potential models for consideration of rent stabilization policies that include rent increase caps and the economic impact of those models.
In describing the need to further study the issue of ‘Rent Stabilization,’ including capping rents, Council President Bender stated, “It’s time to further study this issue and ask the question should we even before asking the question could we,” a reference to a MN state law prohibiting rent control.
The vote of the Housing Policy Committee was 6-1. Councilmembers Gordon, Ellison, Reich, Bender, and Schroeder voted in the affirmative. Councilmember Goodman voted nay.
In the public statement that was released on social media and signed by Council Lisa President Bender and Councilmember Jeremiah Ellison they offered renter displacement, renter cost burdens, rental vacancy rates and the need to maintain an inclusive and welcoming city as the reasons to further study rent stabilization or rent control.
Next step: City staff to return to Minneapolis Housing Policy and Development Committee on November 13, 2019 with a report about an attempt to contract with a vendor to provide policy advice regarding rent stabilization/rent control.
All information is according to the Minneapolis Area Association of REALTORS® (MAAR).
Swift Realty is Proud member of MAAR.
