December 6, 2023
Townhouses – The Stars of the Twin Cities Area Housing Market
While single-family homes continue to have a slow market, the popularity of townhomes continues to grow. With higher home prices and rates, buyers in the Twin Cities area would now pay $1,000 more a month than three years ago. That being said, many have taken another route and are buying townhomes in suburban areas, specifically in the East Metro.
This increase in popularity directly correlates to the increase of younger, budget-conscious buyers entering the market. During October, townhouse sales in the metro rose 6.5% compared with last year, compared with a nearly 8% decline in single-family sales, according to the latest data from the Minneapolis Area Realtors (MAR).
Many young buyers say that townhomes are in much better shape than most single-family homes within their budget, and adding the endless maintenance required of a single-family home makes a townhome much more attractive, especially as young buyers are highly career-focused. Many say as their family begins to grow, they will look to purchase a single-family home.
Townhouses promise maintenance-free living, but also affordability. In October, the median cost of a townhouse in the metro was $305,000, nearly $100,000 less than a typical single-family house, according to MAR. But the median price of a townhome rose 7%, nearly three times more than the price of a single-family house did.
However, it’s not just first-timers who are boosting demand and prices. Builders say a growing number of baby boomers are using the equity in the house where they raised a family to buy decked-out townhouses that give them freedom and flexibility to come and go as they want. Today, townhouses account for upwards of a quarter to a third of all new housing for some builders.
Here at SRG, we know that townhouses are a great real estate option, especially for first-time home buyers. If you are looking to purchase a townhouse, please do not hesitate to reach out.