minneapolis

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Minneapolis is a thriving city in the state of Minnesota. It’s known for its parks, lakes, trails and outdoor activities, as well as its indoor attractions like the Walker Art Center. Unique indie and vintage shops line its streets, and it’s home to the University of Minnesota.

Career-driven professionals flock to Minneapolis for its ample opportunities, whereas families and retirees enjoy quieter suburb communities with museums, premier school districts and free movies and concerts in the park. As of Jan. 2022, the average cost of a two-bedroom apartment in Minneapolis, Minnesota was $1,806.

Where to live in Minneapolis

There are multiple neighborhoods to choose from if you’re wondering where to live in Minneapolis, MN, and each one has something unique to offer. Some are more affordable and family-centered, whereas others are expensive and provide easy access to cultural and social events. Though choosing one may seem overwhelming, you can easily narrow your neighborhood choices by completing our multiple-choice quiz below!

Who’s coming with you?

Which one neighborhood characteristic can you not live without?

What’s your idea of quality downtime?

Which of these best describes your current life stage?

Your personal style could be best described as:

Which of the following is most important to you in choosing an apartment?

Where to Live in Minneapolis

Uptown

Uptown Minneapolis is a coveted area due to its relaxed, fun atmosphere. Its choice of bars, restaurants, entertainment venues and specialty shops portrays its vibrancy. For example, Uptown features a 20,000-square-foot store called Kitchen Window that sells wares, ingredients, appliances and other items procured locally, nationally and internationally. Uptown Theatre is a popular favorite among locals, who can see foreign, indie and avant-garde films. Residents enjoy rooftop dining at Stella’s Fish Café & Prestige Oyster Bar, bowling and theatrical performances at Bryant Lake Bowl & Theater and live acoustic music at Troubadour Wine Bar. Uptown is the prime destination for singles, night owls, partygoers and social butterflies. It attracts individuals who enjoy food, shopping, movies and live entertainment. This trendy area appeals to a younger crowd who wants to have fun.

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Loring Park

Loring Park is a hip location characterized by large festivals and modern art. Home of the Twin Cities Gay Pride Festival, it’s an inclusive neighborhood with one of the lowest crime rates in Minneapolis. The Minneapolis Sculpture Garden is an expansive urban sculpture park famous for approximately 40 works of modern art. Loring Park is also the site of recent construction, including the renovation of Alden Smith Mansion, which is becoming a 124-unit apartment complex. There are pet-friendly apartments nearby, and spots like Lakes & Legends Brewing Company let you bring your dog indoors. It’s a great neighborhood for those with pets or significant others. It’s also perfect for individuals looking for a safe, inclusive community. Its quirky vibe attracts hipsters, and its new, stylish spaces make it a premier location.

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Linden Hills

Image Source: 2719 W 43rd St

Linden Hills provides families and retirees opportunities to canoe and kayak. It’s common to see individuals ice fishing or gathering for the Lake Harriet Winter Kite Festival. When warmer weather strikes, people flock to the beach. This family-friendly neighborhood has a prolific past well-documented by the Minnesota Streetcar Museum. Linden Hills is known for its delectable food, ranging from the Argentinian-inspired menu at Martina to stir-fries and curries at Naviya’s Thai Brasserie. Its shopping centers feature antiques and collectibles, and individuals can catch free movies and concerts at Lake Harriet Bandshell Park. Linden Hills has affordable and luxurious apartments. It’s known for its history, outdoor activities, shopping and food. It’s popular with families and retirees who wish to spend time outdoors while being close to everything they need.

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North Loop

Hipsters and young professionals inhabit the North Loop, where they enjoy proximity to cultural events. It’s sometimes referred to as the “Warehouse District” since many of its trendy restaurants and shops were originally warehouses. If you’re searching for rare or out-of-print books, James & Mary Laurie Booksellers has over 120,000 to choose from. The North Loop is also home to Target Center, where the Minnesota Timberwolves and Lynx play. In addition, the Minnesota Twins occupy Target Field. Basketball and baseball fans enjoy going to a game before grabbing a drink with friends. The North Loop is expanding and ripe with construction. It’s well-suited for cultural enthusiasts, hipsters and young professionals. It’s not far from work, great food, a pub or a sporting event.

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Downtown East

Downtown East is a professional neighborhood that has gained a reputation for its live entertainment venues. Significant sporting events and concerts take place in the U.S. Bank Stadium. Nearby, the Minneapolis Armory attracts clubbers looking for live music and events. The trend-setting neighborhood is home to a cutting-edge skate park in Elliott Park. Interestingly, the same company that designed the skate park at the 2020 Tokyo Olympics constructed it, and the park is complete with rails, ledges, quarter pipe and a seat wall for skaters and spectators. Downtown East is the perfect destination for singles and young professionals who want close proximity to work and have fun things to do on the weekend. It has some great pet-friendly apartments for those who wish to bunk with furry friends.

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Dinkytown

Image Source: The Knoll Dinkytown

Dinkytown is known for its proximity to the University of Minnesota. Single college students and those with roommates are likely residents. It’s a smaller neighborhood with convenient locations. Students enjoy affordable bars, dining options and social venues, such as Huntington Bank Stadium, Williams Arena, Maturi Pavilion, 3M Arena at Mariucci and Ridder Arena. From football to basketball to hockey, students enjoy going to games and nearby bars. There are excellent accommodations for parents who come to visit or catch a game. The quirky neighborhood also demonstrates its appreciation for art with the Frederick R. Weisman Art Museum. Dinkytown is a quirky college town with affordable apartments. With activities to attend on and off campus, Dinkytown is constantly in motion.

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St. Anthony

St. Anthony became a city in 1945 and belongs to the metropolitan area of Minneapolis. Locals call it “The Village” due to its tight-knit community, and the University of Minnesota campuses in St. Paul and Minneapolis are 10-15 minutes away. It’s also known for its premier K-12 independent school district. The city prioritizes easy access to parks, bike trails, golf courses and Silver Lake. It’s a “GreenStep City Level 5,” meaning it has demonstrated devotion to efficiency, resiliency and a healthy environment. St. Anthony is close to downtown Minneapolis and residents can reap the advantages before retreating to a smaller community setting. Families and college students are likely residents and enjoy quality relationships while receiving a good education. Weekends filled with picnics, golfing, walking and biking provide relief from hectic schedules.

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Golden Valley

Image Source: Hello Apartments

Golden Valley became a city in 1972 and is near downtown Minneapolis. It’s a welcoming suburb community committed to diversity, equity and inclusion. One of its characteristics is its relationship to nature. Over 1,035 of its acres compromise open spaces and parks. The city cares for approximately 50 miles of trails where individuals walk, hike and maintain their health. Due to the accessibility of these parks and trails, Golden Valley is a “Parkinson Friendly Community” by the National Parkinson Federation of Minnesota, and it has events for all ages. Individuals who prioritize nature and relaxation are good Golden Valley candidates. Retirees enjoy community events designed for their age group and activities like birdwatching, walking and fishing. The welcoming community also makes a beautiful couples’ destination.

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Rebecca Green is a content editor and writer for RentPath. She enjoys interior design, dogs and can tell you where to find the best pizza in Brooklyn. You can see some of her other published work on Apartment Guide.

Source: rent.com

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Aer Lingus is the flag carrier of Ireland. The airline goes back to 1936 when the carrier was called Aer Lingus Teoranta.

When you participate in the AerClub, the loyalty program of Aer Lingus, you earn Avios that are redeemable for award flights on Aer Lingus, as well as its partners British Airways and Iberia. You can even transfer Avios between these programs for free.

Here’s your guide to Aer Lingus and its frequent-flyer program.

About Aer Lingus

Headquartered in Dublin, Ireland, Aer Lingus flies to nearly 100 destinations in 23 countries, including the United States.

Combined with its partners, you’ll be able to fly to about 150 destinations. The airline operates under three brands: Aer Lingus, Aer Lingus UK and Aer Lingus Regional.

Aer Lingus operates direct flights from Dublin and Shannon airports, as well as from Manchester, England, to the following U.S. cities.

From Dublin

  • Cleveland.

  • Hartford, Connecticut.

  • Los Angeles.

  • Newark, New Jersey.

  • Orlando, Florida.

  • Philadelphia.

  • San Francisco.

  • Washington.

From Shannon

From Manchester

Aer Lingus fare classes

When booking transatlantic Aer Lingus flights, you’ll have a choice of several fare classes: Saver, Smart, Flex, Business and Business Flex. The higher the fare you purchase, the more extras will be included.

Each fare type includes the following items:

Saver

  • Carry-on bag (22 pounds/10 kilograms).

  • Small personal carry-on item.

  • Complimentary meal.

Smart

  • No change fees.

  • Checked bag (one 50 pounds/23 kilograms bag in economy or three 50 pounds/23 kilograms bags in business class).

  • Advance seat selection.

  • Eligible for a credit voucher.

Flex

  • Eligible for a cash refund (minus the fees).

Business

  • Dedicated check-in line.

  • Airport lounge access.

  • Lie-flat seats.

  • Complimentary Wi-Fi (on Airbus A330 and Airbus A321neo Aer Lingus aircraft).

  • Luxury dining.

  • Standby for earlier flight.

  • Fast Track through security at Dublin Airport.

  • Refundable fare (minus 15% and fees).

Business Flex

  • Fully refundable fare.

Aer Lingus business class aircraft

Aer Lingus operates three types of planes on its transatlantic routes: Airbus A330-200, Airbus A330-300 and Airbus A321neo LR.

Aer Lingus A321neo business class

Just 16 lie-flat beds are available in business class on the Aer Lingus Airbus A321neo plane. The seats are arranged in 2-2 and 1-1 configurations in a single-aisle cabin.

Aer Lingus A330-200 business class

Aer Lingus doesn’t operate a ton of routes with an Airbus A330-200, but it’s still possible you might fly this aircraft between Ireland and the United States, especially on routes from Dublin to either Los Angeles or San Francisco.

This business-class cabin features 23 seats arranged in a 1-2-2 or 1-2-1 configuration. The seats are 22 inches wide and provide 58 inches of pitch.

Aer Lingus A330-300 business class

The largest aircraft in the fleet, Airbus A330-300 more commonly operates Aer Lingus flights to and from the United States. The seats are the same size as its A330-200 counterpart, but because it’s larger, you’ll find 30 lie-flat seats arranged in a 1-2-1 or 1-2-2 configuration.

How to earn Aer Lingus Avios

Aer Lingus AerClub members earn Avios, the same currency shared by British Airways Executive Club, Iberia Plus, Vueling Club and Qatar Airways Privilege Club.

Earn by flying

You can earn AerClub Avios by flying Aer Lingus and its partners, such as British Airways and United Airlines.

On Aer Lingus flights, the number of Avios you’ll earn is based on how much you spend on the ticket and the currency you used to pay for the flight:

  • 3 Avios per 1 euro.

  • 4 Avios per 1 British pound.

  • 3 Avios per U.S. dollar.

  • 2 Avios per Canadian dollar.

If you fly British Airways or United, you’ll earn Avios based on the purchased fare class and the percentage of the distance flown.

Earn by spending on credit cards

Chase issues the Aer Lingus Visa Signature® Card. It earns 3 Avios per dollar spent on Aer Lingus, British Airways, Iberia and LEVEL; 2 Avios per dollar spent on hotel accommodations purchased directly from hotels; and 1 Avios per dollar spent on all other purchases.

The current sign-up bonus is: Earn 75,000 Avios after you spend $5,000 on purchases within the first three months of account opening.

Earn by transferring points

AerClub is a transfer partner of American Express Membership Rewards and Chase Ultimate Rewards®. Points transfer at a ratio of 1:1 in both cases.

If you have Marriott Bonvoy points, you can transfer them to AerClub at a ratio of 3:1, with a bonus of 5,000 Avios for every 60,000 Marriott points converted at once.

Transfer Avios from partners

Use avios.com to transfer Avios from either British Airlines or Iberia to Aer Lingus. If you need to transfer Avios from Qatar, use British Airways as an intermediary first and then follow the next step to transfer them to Aer Lingus.

What are Aer Lingus Avios worth?

NerdWallet values British Airways Avios to be worth 0.8 cent each. Because Avios can be transferred from British Airways to Aer Lingus, we’ll say that they’re worth the same. Keep this in mind and use it as a target value when redeeming AerClub Avios for flights.

How to redeem Aer Lingus Avios for maximum value

You can redeem Aer Lingus Avios for awards on Aer Lingus, British Airways and Iberia only, so you don’t have many options to maximize the value. However, you still can get a decent deal redeeming Avios for award flights.

To redeem AerClub Avios, you have to log in on avios.com with your Aer Lingus credentials. The redemption rates depend on the distance you fly, the season and the class of service.

U.S. East Coast to Ireland on off-peak dates

One of the best Avios redemptions through Aer Lingus is for award flights between the East Coast of the United States and Ireland during off-peak season. The one-way mileage rate is just 13,000 Avios in economy class and 50,000 Avios in business class. You’ll pay $116 to $138 in taxes, but it’s still a great deal.

Ireland routes in the East Coast travel zone include:

  • Cleveland.

  • Minneapolis.

  • Philadelphia.

  • Washington.

U.S. East Coast to Europe on off-peak dates

If Ireland isn’t your destination, you can connect to other European cities that Aer Lingus flies to for an additional 4,000 Avios. So, you’ll redeem 17,000 Avios for an Aer Lingus economy flight anywhere in Europe on off-peak dates.

U.S. West Coast to Ireland on off-peak dates

West Coast residents can take advantage of some great redemption rates on routes to and from Ireland. A one-way economy flight is going to cost you 16,250 Avios, and a business class flight will cost 62,500 Avios.

Ireland routes in the West Coast travel zone include:

  • Los Angeles.

  • San Francisco.

Aer Lingus AerClub, the elite status program

Status levels and benefits

Launched in 2016, AerClub is quite a newcomer to the airline loyalty program scene. It has four membership levels: Green, Silver, Platinum and Concierge. If you sign up for the AerClub program, you automatically become a Green member, so technically there are three elite tiers.

Depending on your elite level, benefits include priority check-in and boarding, lounge access, complimentary bags, complimentary upgrades, free Wi-Fi and waived change fees.

How to earn Aer Lingus elite status

Achieving elite status in the AerClub program requires earning Tier Credits, which are awarded based on your route and fare type. The more Tier Credits you earn within a qualification period, the more you progress in the elite levels. Keep in mind that only Aer Lingus ticketed and operated flights earn Tier Credits.

The qualification period is based on when you join AerClub, so make sure to remember the date you signed up as a member. The Tier Credits reset to zero annually on your anniversary date.

European flights earn a different number of Tier Credits than transatlantic flights ticketed and operated by Aer Lingus.

Here’s how many Tier Credits you’ll earn on flights within Europe:

And here’s how many Tier Credits you’ll earn on transatlantic flights:

Keep in mind that the earning rates will change for travel after Oct. 1, 2023.

Aer Lingus AerClub recapped

As a relatively new airline loyalty program, AerClub still has a long way to go. Members can redeem Aer Lingus Avios for award flights on Aer Lingus or its partners. The option to transfer Avios to British Airways, Iberia and Qatar also greatly expands their use.

(Top photo courtesy of Aer Lingus)

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:

Source: nerdwallet.com

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South Dakota is home to vast and varied landscapes like the stunning Badlands National Park and the towering Black Hills, alongside quaint and historic cities like Sturgis and Deadwood. With its outdoor activities and Old West heritage, South Dakota has many reasons that make it a great place to live. If you’ve been considering moving to South Dakota or buying a home in the state, you also probably have a budget you’d like to stay under as you look for a place to live. When it comes to buying a home in South Dakota the median home sale price is $375,000. 

Don’t worry if that number doesn’t fit in your budget – we’ve got options to help you find a home or apartment that does. Redfin has rounded up a list of the 5 of the most affordable places to live in South Dakota, and they all have a median home sale price under the state’s average. Let’s jump in and see what cities are on the list.

#1: Aberdeen

Median home price: $218,950 
Average sale price per square foot: $104 
Average rent for a 1-bedroom apartment: $845 
Median household income: $58,439 
Nearest major metro: Fargo, ND (195 miles)
Aberdeen, SD homes for sale
Aberdeen, SD apartments for rent

With a median home sale price of $218,950, Aberdeen claims the first spot on our list of affordable places to live in South Dakota. About 28,600 people live in this city and it’s roughly 195 miles from the nearest metropolitan city, Fargo, ND. If you’re considering moving to this area make sure to explore Wylie Park where you’ll find Wylie Lake, a campground, and Storybook Land, or check out downtown Aberdeen.

#2: Brookings

Median home price: $265,000 
Average sale price per square foot: $163 
Average rent for a 1-bedroom apartment: $965 
Median household income: $54,676 
Nearest major metro: Sioux Falls (57 miles)
Brookings, SD homes for sale
Brookings, SD apartments for rent

Taking the second spot on our list of affordable cities to live in South Dakota is Brookings, about an hour drive north of Sioux Falls. When living in this city of 24,500 people, you can check out green spaces like Dakota Nature Park, Sexauer Park & Campground, and McCrory Gardens, explore the South Dakota Art Museum, and visit the downtown area.

#3: Rapid City

Median home price: $300,000 
Average sale price per square foot: $200 
Average rent for a 1-bedroom apartment: $1,230 
Median household income: $58,072 
Nearest major metro: Denver, CO (350 miles)
Rapid City, SD homes for sale
Rapid City, SD apartments for rent

Third is Rapid City where about 75,400 residents currently live. The median home sale price is $300,000 which is about $75K less than the median home sale price in South Dakota. If you find yourself moving to the third most affordable city in South Dakota, make sure to enjoy time outside exploring the Black Hills Caverns, or hiking, mountain biking, and taking in the scenery at Skyline Wilderness Area Park. You can also visit museums and sites like The Journey Museum & Learning Center, the Berlin Wall display, and the Museum of Geology. 

#4: Watertown

Median home price: $310,000 
Average sale price per square foot: $141 
Average rent for a 1-bedroom apartment: $630 
Median household income: $54,676 
Nearest major metro: Fargo, ND (150 miles)
Watertown, SD homes for sale
Watertown, SD apartments for rent

A little more expensive than Rapid City is Watertown, the next city on our list. With a population close to 22,200, there’s still plenty to do in this city. Plan to check out Sandy Shore State Recreation Area along the shores of Lake Kampeska, visit Bramble Park Zoo, and explore the local shops and restaurants downtown.

#5: Sioux Falls

Median home price: $325,000 
Average sale price per square foot: $182 
Average rent for a 1-bedroom apartment: $1,017 
Median household income: $54,676 
Nearest major metro: Minneapolis, MN (270 miles)
Sioux Falls, SD homes for sale
Sioux Falls, SD apartments for rent

Consider adding Sioux Falls to your list of cities to consider living in if you’re looking for an affordable place to move to in South Dakota. With 181,900 residents, moving to this affordable city gives you the perks of city-life while still living close to nature. In Sioux Falls, you can visit Falls Park to see the waterfalls, check out the butterflies and animals at Butterfly House & Aquarium, and explore museums like the Old Courthouse Museum.

Methodology: All cities must have over 50,000 residents per the US Census and have a median home sale price under the average median home sale price in South Dakota. Median home sale price and median sale price per square foot from the Redfin Data Center during August 2023. Average rental data from Rent.com August 2023. Population and median household income data sourced from the United States Census Bureau.

Source: redfin.com

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It doesn’t matter if you’re moving across town or across the country. With kids or flying solo. Moving for work or for adventure. Moving etiquette is real. Listed below are some of the biggest faux pas you can make when dealing with your movers. Avoid those actions throughout your moving day and enjoy a seamless move and a happy crew.

1. Making movers wait

The biggest mistake you can make on moving day is making your movers wait around for you. Their time is just as valuable as yours and, while you may be taking the day off for your move, the movers are on the clock and hoping to complete the job as quickly as possible.

Much of the advice listed below plays a role in making sure your movers aren’t waiting on you for anything but it’s being mentioned here at the top anyway because it is the number one thing you can do to make your movers mad.

2. Forgetting to separate out problem items

There are a number of items that reputable movers will not move. Things like flammable or volatile substances can put your other items at risk and can even risk the safety of your movers themselves.

Regardless of training or road time, driving a large truck with thousands of pounds of cargo is difficult and dangerous. Not just because of the size of the cargo but also because of the other drivers on the road. Don’t saddle your movers up with potentially dangerous cargo and either make a plan to dispose of, leave behind or transport these items yourself.

3. Not labeling clearly

Your movers don’t know your home as well as you do. That’s true for the home you’re leaving and the home you’re settling down in. Make sure you label everything — yes, everything — as clearly as possible.

Even if you know the blue plastic bin is holding all of your remotes and family streaming passwords on moving day, you may not remember that by the time unpacking rolls around. Beyond that, without proper labeling, any important boxes are vulnerable to being cast out into a corner and forgotten about.

So, even if you think it’s over the top, label everything that’s making the move with you as clearly as you possibly can.

4. Neglecting the small details

There’s so much more to moving than boxing up your things and making the trip from A to B. In order to ensure your move goes as smoothly as possible, it’s important that you handle all of the ancillary logistics that can hold up the process if not thought about ahead of time.

These things include parking permits for the moving truck and freight elevator reservations. Basically, anything at the location you need to take care of upon your arrival, you should plan out ahead of time.

You should also do your best to get to the location before your movers to ensure that there are no unexpected issues waiting for you at your new apartment.

5. Not separating out irreplaceable items

Separate out any items you would consider irreplaceable and are able to pack into your own truck or car. Obviously, if your 12-person dining room table is irreplaceable, the movers will still have to handle an object of that size.

But, if it means a lot to you and you can move it yourself, just do that. It makes life easier for you and your movers and lessens the stress and emotional burden that comes with picking up your entire life and heading to a new place.

6. Not providing extra supplies

You hired movers so you don’t have to do the heavy lifting with your move. While your movers should come prepared with everything they need to get the job done, you should do all that you can to support your crew.

Be sure to make extra supplies, like tape, boxes, packing paper, markers for labeling, scissors and anything else that you think could be of help to them, available and easily accessible. Not only is this easy for you but it can also potentially save your movers time during the day if they always have the supplies they need at the ready.

7. Not offering refreshments

It doesn’t matter if you’re in the dog days of summer in Atlanta or the middle of winter in Minneapolis, you should offer your movers water at the very least. Moving, like all strenuous physical activity, is something that requires significant physical strength and proper hydration. Without those two, your movers risk damaging your possessions or injuring themselves.

It doesn’t take long to set out a pitcher of water or provide the crew with some water bottles and it will show your movers that you appreciate and respect the effort they are making to get you moved as efficiently as possible.

8. Hovering over your movers

Your movers are professionals. Let them do what they do, which, if you hired the right company, is get your belongings from A to B as quickly as possible. They don’t need you hovering over them making sure each box is placed perfectly in their truck the way you’d like it.

9. Forgetting to tip

Moving is hard work. It’s why you hired someone to do it for you. And, while you may have paid a pretty penny to accomplish the move, it’s still customary to tip. Will the movers pack your stuff back up and hold it on the truck until you break out a few bills? No. Is it the right thing to do, though? You betcha, especially if they did a great job.

You will make it

Is moving stressful? Yes. Is it also something that people do every day? Yes. You’ll make it through your move and into your new rental. Do your best to plan ahead, supply your movers with everything they need to succeed, stay out of their way and stay calm.

It may seem like a lot now but you’ll be settled into your new place and your new life in no time. Happy moving!

A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.

Source: rent.com

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If you’re currently in the market to purchase a home, you’re probably pretty frustrated. After all, it has become increasingly difficult to find a property thanks to ongoing inventory constraints.

Factor in investors you have to compete with and renting starts to sound a lot more realistic.

Over the past few years, investors have been leading the recovery, namely the big gun hedge funds buying up thousands and thousands of distressed properties.

But they’ve been going with the buy and rent strategy, as opposed to the classic buy and flip approach.

Still, classic flippers have been able to get back in the game thanks to the rebounding real estate market, though after a steady increase in business, numbers are on the decline again, according to RealtyTrac’s Q1 2014 U.S. Home Flipping Report released yesterday.

During the first quarter, single-family home flips, which RealtyTrac defines as two sales that occur within six months, accounted for 3.7% of all home sales.  That number is down from 4.1% in the fourth quarter and 6.5% a year earlier.

However, flippers have gotten better at what they do because the average sales price of a flipped home during the first three months of the year was $55,574 higher than the average original purchase price, up from $51,805 a year ago.

And the unadjusted return on investment was 30% of the average original purchase price, up from an unadjusted ROI of 28% a year earlier.

House flippers appear to be benefiting by purchasing more expensive homes, which increases their margins, according to some real estate brokers referenced in the report.

However, that means flips are turning over more slowly, with flips completed in the first quarter taking an average of 101 days to complete, up from 92 days in the fourth quarter and 79 days in the first quarter of 2013.

New York Is the Flippiest Metro in the Nation

Wondering where the most flips are taking place? Well, New York led the large metros with a 10.2% share, followed by Jacksonville (10%), San Diego (7.1%), Las Vegas (6.7%) and Miami (5.9%).

New York was also the volume leader with 1,791 flips completed in the first quarter, followed by Phoenix (894), Los Angeles (828), Miami (749), and Riverside-San Bernardino (627).

Metros that saw the biggest year-over-year increases in flips included San Antonio (up 52%), Nashville (up 50%), Indianapolis (up 47%), Austin (up 35%), and Providence (up 33%).

Conversely, flips as a share of home sales were down big from a year earlier in New Orleans (-83%), Baltimore (-81%), Minneapolis (-80%), Richmond, VA (-80%), and Detroit (-76%).

They also took a dive in New York (-37%), Phoenix (-39%), Riverside-San Bernardino (-22%), Atlanta (-57%), and Chicago (-29%).

Are Flips Worth Buying or Simply a Ripoff?

Unsurprisingly, an overwhelming 82% of flipped properties went to owner-occupants, seeing that investors don’t typically flip homes to sell to other investors.

But 18% did go to a buyer with a different mailing address than the subject property, and 43% were all-cash sales.

Flipped homes are clearly very appealing to home buyers, namely because they’re designed to be exactly that.

Flippers know precisely what to upgrade/update/fix/renovate to make the home extremely attractive in today’s market.  They also know how to list homes properly.  If you browse through listings, you’ll probably be drawn to the flipped homes for that reason.

But if you scroll down to the transaction history of the home, you may be a little perturbed to see the list price 50-100% higher than the last sales price that occurred just months before.

Sadly, this market is so constrained that people don’t even care and will bid full price regardless of the huge markup.

At the end of the day, plenty of buyers want a move-in ready home, so paying a premium to get something all ready to go makes sense.

The downside to flips, other than the ridiculous price tags, is the quality of the work. When you walk into some flips, it’s immediately obvious that the flipper used the cheapest materials they could find to get the job done.

Often going as far as to mix and match materials to make things work, even if they don’t actually go together. So flips aren’t necessarily in better shape, they could just be hiding a lot of the bad with superficial upgrades.

As always, do lots of homework, ask a ton of questions, and inspect homes thoroughly before making an offer.

Source: thetruthaboutmortgage.com

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Life has gotten a lot more convenient over the past decade thanks to our friend the Internet.

Today, we can shop for clothes, groceries, and just about anything else online, do our banking with text messages and smartphones, or hail a ride home with the touch of a button.

But one area that still needs improvement is real estate, including the notoriously chaotic mortgage world where paperwork continues to be beyond burdensome in the digital age.

Remember when MBA chief David Stevens claimed that the average mortgage file had grown to more than 500 pages?

Well, hopefully the smart guys and gals up in Silicon Valley have a solution for that as well.

Say Hello to Opendoor, the Instant Home Buyer

  • Opendoor is one of the biggest iBuyers of residential real estate
  • They want to help you sell your home quickly with the push of a button
  • Instead of having to clean it, list it, show it, and wait for the offers to come in
  • And make it easier to acquire a new home while getting rid of your old one

A group of San Francisco-based tech disruptors (that’s the buzzword these days) have big plans to make selling your home a lot easier and faster.

Their company, called Opendoor, has one mission. To make it easy to sell your home. To quote them exactly, their tagline appears to be, “The easiest way to sell your home.”

Note the word easy; nowhere on their one page website do they say highest price. Or anything to do with price for that matter. Just that you’ll receive an “instant offer” online and be able to close in 3 days. Wow.

Simply put, they want to bring liquidity to real estate, similar I suppose to how stocks are bought and sold within milliseconds online.

That’s the draw of buying stock. You can unload it whenever you want and get your hands on the cash for other needs with minimal delay.

One of the major downsides to real estate as an investment (or in general) is that it’s extremely illiquid.

If you own a piece of property and want to dispose of it, you’ll need to hire a real estate agent, create a listing, spruce up the place, let people tour the property, and hopefully land a suitable offer.

The process, if you’re lucky, will only take a month. More realistically, it’ll take a few months from start to finish, barring the recent home buying frenzy that has probably given every homeowner unrealistic expectations on selling timelines.

It Might Make Sense to Use Opendoor If You Must Sell Quickly

  • Like most convenient services there is a price that must be paid
  • Opendoor may make sense if you have to sell your home quickly for some reason
  • But there’s always a cost to doing things easier
  • And that could mean a significantly lower offer price for your home

To be clear, Opendoor doesn’t plan to replace real estate agents or reinvent the entire process. At least, not just yet.

They simply want to provide a quicker way to sell when you don’t have time to go through the entire process, whether because you’re relocating for a job or simply because you need capital this week, not three months from now.

Perhaps you’re having trouble keeping up with mortgage payments and just want to avoid foreclosure. There are plenty of reasons why homeowners may want to sell immediately.

Apparently there’s some algorithm that determines an appropriate selling price, similar to how Zillow provides you with a Zestimate.

So far they’ve snagged $9.95 million in funding, though the lead is from Opendoor co-founder Keith Rabois of Khosla Ventures.

Other notable individuals involved with Opendoor include PayPal co-founder Max Levchin, former YouTube and Facebook CFO Gideon Yu, Yelp CEO Jeremy Stoppelman, and Facebook vice president Dan Rose.

With that group of investors, it’s certainly going to get interesting in a hurry.

How Selling a Home with Opendoor Works

  • You request an offer to sell your home
  • A “home expert” prepares an offer based on market data in 24 hours
  • You review the offer and sign if you accept it
  • They provide a free home assessment to determine repair costs
  • You choose a closing day and they buy your home

Opendoor basically takes the guess work and uncertainty out of selling a home by just agreeing to buy it from you for a certain market-driven price.

That makes them an iBuyer, or instant buyer, of homes, as opposed to a maybe-buyer who takes 30-45 days to close on your home, assuming they get to the finish line.

Instead of having to find a real estate agent, clean it, list it, stage it, hold open houses, and wait and hope that it sells for the price you want/need, they’ll buy it for you in a matter of days.

All you need to do is request a free, no-obligation offer by entering your address and telling them about your home.

If your home qualifies, a local market expert will  prepare your offer in just 24 hours, relying on your property’s unique features and market data.

The offer is good for five days, but you can proceed whenever you’d like. It can also be refreshed at any time after that period.

Assuming you accept, it will be subject to an in-person inspection to determine if repairs are necessary.

If they are, you can make them yourself or leave it up to Opendoor, in which case the costs will be deducted from your sales proceeds.

You get to choose your closing date as well, between 14 and 60 days, whether you want to unload it quickly or at a later date (and changes can be made free of charge).

That can come in handy if you need a quick sale, perhaps to avoid a contingent purchase. Or if you need cash fast from the sale of your home.

But they’re happy to let you stick around a while too. This flexibility is one of the main perks of iBuying, especially if you’re acquiring a new home.

Opendoor Pricing and Fees


Despite the enormous convenience, Opendoor claims to save you money too, with the average service charge around 7.1% of the sales price versus a 7-10% cost if you go the traditional route.

You can see a breakdown above of what a traditional sale might cost versus selling to Opendoor.

Of course, what’s the sale price in both scenarios? If they’re the same, great. If the one with Opendoor is significantly lower, the math changes quickly.

These head-to-head comparisons always seem to feature the same sales price, which probably isn’t a reality.

Another key factor is repair costs. Will Opendoor hold you accountable for thousands in repairs, or will they go relatively easy? I guess it depends on the property in question.

Regardless, you do have to factor in some “cost” for the time and effort saved by not having to list yourself.

And as they point out, there is a cost to owning two homes at once, assuming you’re not benefiting from it.

Opendoor Versus the Competition

Not all iBuyers are created equal, despite there being several of them nowadays like Zillow Offers and Offerpad.

Opendoor points out the subtle, but important differences in their offerings versus the competition.

Notably, they allow you to cancel your home sale at any time for any reason, which apparently isn’t the case with Offerpad.

They also allow a 14-day “Late Checkout” if you need to stay in your home a bit longer before you move into your new abode.

However, my guess is all these companies will make adjustments over time to match up with the others.

So ultimately it will probably come down to pricing if you shop different iBuyers at the same time.

Buying an Opendoor Home

  • Opendoor sells the homes it buys shortly after refurbishing them
  • So you can search their listings on their website/app
  • And then buy a home directly from them too
  • With or without your own real estate agent

If you happen to be a home buyer, you can purchase an Opendoor property.

After all, if Opendoor is buying properties from home sellers, they’ve got to unload them on the other side.

They provide some benefits to buyers as well, including the ability to view an Opendoor home via the Opendoor Homes mobile app.

You can actually open the door so to speak by unlocking it with the app. Or at least getting the code to the lockbox. And each home is open daily from 6am to 9pm, so there’s always a convenient time to visit.

Once you’re ready to make an offer, you can do so via the Opendoor app or their website, and it only takes 48 hours or so to hear back.

They say it generally takes 20-30 days to close, similar to a traditional home purchase, and they require you to be pre-approved for a mortgage before making an offer.

If you have a buying agent, you can use them and Opendoor will pay them a commission. But it might affect your sales price.

Lastly, there’s a 30-day satisfaction guarantee if you don’t love your home, they’ll buy it back.

Update: They also recently launched a trade-in program where you can sell your home and get a new one all through their company.

Where Opendoor Is Currently Available

At the moment, Opendoor is available in the following metros/cities:

  • Asheville, NC
  • Atlanta, GA
  • Austin, TX
  • Boise, ID
  • Charlotte, NC
  • Columbia, SC
  • Dallas Fort-Worth, TX
  • Deltona, FL
  • Denver, CO
  • Greensboro, Winston-Salem and High Point, NC
  • Houston, TX
  • Jacksonville, FL
  • Killeen, TX
  • Knoxville, TN (and Chattanooga)
  • Lakeland, FL
  • Las Vegas, NV
  • Los Angeles, CA
  • Miami, FL (including Fort Lauderdale and Palm Beach)
  • Minneapolis-St. Paul, MN
  • Nashville, TN
  • Ogden, UT
  • Oklahoma City, OK
  • Orlando, FL
  • Ormond Beach, FL
  • Oxnard, CA
  • Phoenix, AZ
  • Portland, OR
  • Prescott, AZ
  • Provo, UT
  • Raleigh-Durham, NC
  • Reno, NV
  • Riverside, CA
  • Rochester, MN
  • Sacramento, CA
  • Salt Lake City, UT
  • San Antonio, TX
  • San Diego, CA
  • Sarasota, FL
  • Tampa, FL
  • Thousand Oaks, CA
  • Tucson, AZ
  • Ventura, CA
  • Winter Haven, FL

Their hope is to offer the service nationwide at some point in the near future, and they have plans to expand to additional metros this year.

Opendoor’s Mortgage Division

  • You might be able to finance an Opendoor home with an Opendoor home loan
  • If buying in the states of Arizona or Texas
  • The company provides a 1% credit for closing costs
  • And the ability to get pre-qualified quickly

The company has since introduced a financing arm known as “Opendoor Mortgage” that provides financing for buyers of Opendoor homes. It’s only available in Arizona and Texas at the moment though.

The name has since been changed to Opendoor Home Loans.

They claim to offer competitive mortgage rates and the ability to get pre-qualified in under 30 minutes. And if everything happens under one roof, they might be able to close faster.

So it seems they’re trying to make it a one-stop shop, which makes sense because time is of the essence and you can’t have a third-party lender slowing things down.

At the moment, they have a promotion where a buyer can get a so-called “ultimate mortgage.” I’m not exactly sure what that means, but it does come with 1% off the purchase price in the way of a credit for closing costs.

This could make Opendoor Mortgage more competitive than other lenders assuming the mortgage rates and lender costs are comparable.

Opendoor Acquires Open Listings

In September 2018, Opendoor acquired Open Listings, a discount real estate brokerage that connects home buyers with local real estate agents.

It’s different in that agents and their services are on-demand, as needed. So a home buyer can control as much or as little of the process as they wish.

And in exchange for that hands-off approach, home buyers who use Open Listings get up to 50% of the typical buyer agent’s commission back.

So instead of the typical 2.5% commission, only 1.25% is paid via the sales price and the other 1.25% is returned to the buyer either via reduced closing costs or via check in the mail.

The company has already refunded over $8 million to homeowners whose collective purchases exceeded $1 billion.

Open Listings was launched just three years ago in Los Angeles, part of Y Combinator, with a simple goal of making buying a home easier and more affordable.

The merger aims to create an end-to-end solution for buying, selling, and trading in homes, the first of its kind in the industry.

Opendoor and Redfin Partnership

In July 2019, Opendoor announced a partnership with competitor Redfin.

While it sounds like an odd marriage, given the existence of a very similar RedfinNow product, it opens up some new markets for Redfin.

The agreement will allow home sellers in the cities of Phoenix and Atlanta to request an Opendoor offer through Redfin’s website or mobile apps, as seen in the screenshot above.

Currently, RedfinNow isn’t available in those markets, so perhaps it a free test-run.

Well, Redfin will actually make a profit if a customer decides to sell to Opendoor, and they’ll be able to see demand for iBuying in those cities.

Opendoor’s home listings will also appear on Redfin’s website and mobile apps.

In mid-June 2021, the company announced that it had reached the 100,000-transaction milestone.

Read more: Is Google about to replace your real estate agent?

Source: thetruthaboutmortgage.com

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A new analysis from Zillow revealed that many minimum wage earners own homes nationwide, a surprising fact given how low the hourly rate of pay appears to be.

The company noted that 3.3 million Americans were paid at or below the federal minimum wage of $7.25 an hour last year.

Yet almost two-thirds of suburban minimum wage earners (and nearly half of those in urban areas) resided in their own property.

Per the analysis, minimum wage earners generally work 40 hours per week, 52 weeks a year. And about two-thirds reside in dual-earning households.

Interestingly, owners dedicated less of their income to mortgage payments, as seen in the table below.

For single and dual-earning families, the median share of income allocated to the mortgage payment was just 33% and 20%, respectively.

That compares to 45% for single-earners and 25% for dual-earners when renting a property.

Of course, there are a lot of hidden costs to owning as opposed to renting, including necessary repairs and upkeep.

Where Can Minimum Wage Earners Actually Buy a Home?

Okay, so we know minimum wage earners still own homes, even those who get no help from a spouse or partner. But where are they actually buying these properties?

Well, as you might have guessed, most of the affordable properties are located outside of major metropolitan areas, though there are a few exceptions.

Zillow made some assumptions about affordability for minimum wage earners to determine where they could buy homes nationwide.

They calculated the maximum affordable home value for single- and dual-earner families in the 35 largest metros by assuming the borrower would have to take out a 30-year fixed FHA mortgage.

And that the interest rate would be roughly 5.3% thanks to a lower credit score between 640 and 679.

Finally, they took those numbers and applied them to the median bottom-tier home (the bottom third of the housing stock) in a given metro area to determine availability.

What they found was that there were very few affordable homes available to minimum wage earners in major cities like New York, Los Angeles, DC, Boston, San Francisco, San Diego, Minneapolis-St. Paul, Portland, and so on.

In fact, the maximum home value available to these workers in NY and LA is just $85,000. Good luck finding a property under $100k in either location, or even close to it.

In all of these metros, one percent of fewer homes are considered affordable to single-earning minimum wage households.

The numbers weren’t much higher for dual-earning minimum wage households either. Still less than one percent of properties were deemed affordable in many locations.

On the other hand, single-earning minimum wage households could afford 38% of properties in Detroit. And 32% in Cleveland, 29% in Tampa, 27% in Pittsburgh, and 23% in St. Louis.

If the household has dual earners, those numbers jump up to 45%, 43%, 37%, 37%, and 33%, respectively.

But Zillow noted that many minimum wage workers tend to stay in the urban areas and rent, or move to areas where prices are a lot lower and commute across metro areas, like from Riverside to LA County.

In other words, homeownership is still out of reach for many.

(photo: Ethan)

Source: thetruthaboutmortgage.com

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FOMC ends meeting with rate hike

The Federal Reserve’s Federal Open Market Committee (FOMC) concluded their two day meeting this afternoon with a written statement that declared they raised the target range for the nation’s benchmark interest rate–the federal funds rate–by a quarter point to 0.75%-1.00%.

It was a nearly unanimous vote, with only one dissent from Minneapolis Fed President Neel Kashkari. This is the third time during this tightening cycle that they have raised rates.

Click here to get today’s latest mortgage rates (Aug. 9, 2023).

The decision came as no surprise to anyone who had been paying attention to recent events, as it was virtually guaranteed that they would take action at this meeting. A strengthening labor market and inflation numbers coming in around the Fed’s target of 2% were among the reasons most Fed officials felt the current economic environment was ready for a rate increase.

Ahead of the meeting, there had been a lot of speculation about how the Fed’s dot-plot, which shows where Fed officials believe rates will be in the future, would change. In the end, a quicker tightening path was not reflected in the dot-plot. Instead, it was left mostly unchanged from the previous meeting, as was most of the written statement.

Janet Yellen Press Conference

Fed Chair Janet Yellen met with reporters shortly after the written statement was released for a question and answer session that lasted about an hour. From the Fed Chair’s tone, there really wasn’t much to the rate hike decision. When asked what message the Fed wants to send to consumers, she responded by saying, “The simple message is the economy is doing well.”

Market Reaction

All of the major U.S. market indexes spiked up after the written statement was released. The yield on the U.S. 10-year yield (the best market indicator of where mortgages rates are going) actually went in the opposite direction, falling several basis points, putting at -.10% on the day.

The drop is due to the fact that many investors had been concerned that the Fed would come out with a more aggressive policy path. But with the Fed reaffirming their position of only two more rate hikes this year, bonds got some relief, causing yields to decline. That means that despite the increase in the federal funds rate, mortgage rates are falling today.

Carter Wessman

Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.

Source: totalmortgage.com

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After years of competitive bidding wars and rising prices, a new study from Zillow shows it might finally be a good time to buy a home in many U.S. markets.

Zillow researchers looked at three factors to determine which of the largest U.S. housing markets are becoming more buyer-friendly and found that some previously prohibitively competitive markets – including Seattle and Las Vegas – have turned into the best places for buyers this winter.

The three buyer-boosting metrics Zillow considered are:

  • An increase in the share of listings with a price cut. Price cuts indicate homes are sitting on the market longer – which means more options for buyers, less competition for homes and more room for buyers to negotiate. Many recently white-hot markets have seen large jumps in the share of for-sale listings with a price cut.
  • Projected increase in rent appreciation over the next year. Rent appreciation has slowed recently, but as mortgage affordability deteriorates due to rising mortgage rates, rents could begin to increase again as some would-be buyers put their buying plans on hold. We know that nearly half of renters consider buying while they’re looking for a home,i and the potential of rising rents also factors in to when it’s a good time to buy.
  • Affordability relative to the past. We looked for markets where mortgage affordability is poor – but not worse than it was historically. With interest rates on the rise, and mortgage affordability already closing in on its historic norm, prepared buyers may want to enter the market before housing payments become historically unaffordable.

Based on those factors, Zillow found that the cities of Orlando, Boston, Seattle, Las Vegas, Charlotte, Columbus, Portland, Sacramento, Minneapolis and Dallas were the top ten markets for buyers this winter.

“The housing market always lets up a little in the fall, when kids are back in school and the home shopping season wraps up for the holidays,” said Zillow Senior Economist Aaron Terrazas.

“But this fall and winter are shaping up to be more favorable for those buyers who have struggled to get into the housing market for several years amid red-hot competition. Mortgage rates are rising, but will climb much further in 2019 and early 2020. As purchase affordability deteriorates, expect rents to pick back up as some would-be buyers put their plans on ice. Renters who were thinking of buying and decided to hold off may want to take another look this winter, as a steady clip of mortgage rate increases chips away at affordability and more homes become available on the market.”

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
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Source: realtybiznews.com

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The cost of living in Minnesota sits within range of the national average, but just below. This affordable state is not only beautiful but an ideal spot for outdoor enthusiasts. From hiking and biking to every kind of water-based activity possible, you’re able to keep busy without setting a foot inside.

Add to that some great cities and small towns, friendly people and delicious food, and you’ve got a state that’s really the complete package.

The question, then, is can you afford to live in Minnesota? To figure that out, it’s best to break down all the elements that make up your total cost of living to see if everything fits into your budget. That means looking at:

Minnesota housing prices

Housing throughout Minnesota varies enough to give you plenty of options when needing to find your most affordable city. With numbers all below the national average, though, it’s not too much of a struggle to locate the perfect place to live in Minnesota.

Mankato

The great thing about Mankato is it feels like a small town, but has all the amenities of something a little bigger. The neighborhoods are cozy, but the city’s parks, rivers and hiking trails provide ample activities year-round. This means hitting your favorite lake to waterski in the summer and then, returning to ice fish in the winter. Home prices are also incredibly affordable at 25.2 percent below the national average.

Both apartment rent and home sale prices are on the more reasonable side in Mankato. The average rent in the city is $1,078, and the median sale price for a home in Mankato is $337,000. Home prices are rising though, up 38.8 percent over last year.

Minneapolis

Though the cost of living in Minneapolis is the highest in Minnesota, home prices here are still below the national average by 6.8 percent. This means there are so many great neighborhoods here to consider as your next home.

Situated right across the river from St. Paul, Minneapolis has amazing food, a great craft beer scene and a strong job market. The city shares many of its professional opportunities with its neighbor and combined, the two cities are home to a large number of Fortune 500 companies.

Rent prices here are also taking a downturn, with one-beds dropping 4 percent and two-beds down by 8 percent. Rent remains reasonable, although more expensive than any other Minnesota city on our list. Your average one-bedroom apartment costs $1,265 per month, and a two-bed apartment goes for an average of $1,595 per month.

Just as in St. Paul, home prices in Minneapolis are rising, but only barely. The median sale price in Minneapolis is $359,900, up 5.9 percent over last year.

St. Cloud

Considered a family-friendly community, St. Cloud offers up a stable economy, small-town comforts and popular events for every age, all year-round. Housing ranges from quaint bungalows to modern lofts with a few historic buildings tossed in there for good measure. What’s even better is that home prices are 17.9 percent below the national average.

This means low rent overall, even though certain units are seeing some serious growth when it comes to price. Although one-bedroom apartments are only up a single percent over last year, two-bedroom prices have increased by 17 percent. However, even with this growth, the average two-bedroom apartment rents for only $927 per month. One-bedroom apartments average out at $704 per month.

Home prices are almost the same, dropping in price only by 0.65 percent over last year. The median home price in St. Cloud is a reasonable $231,000.

St. Paul

As Minnesota’s capital city, St. Paul provides year-round outdoor fun alongside excellent job opportunities and affordable living. With water sports in the summer and skiing and snowboarding in the winter, you’ll always have a reason to get outside. To get a good dose of city life, stroll down Grand Avenue to wander into all the shops and restaurants along this historic strip. All of this is just the tip of the iceberg as to what makes St. Paul special, but even better, home prices are 8.2 percent below the national average.

When it comes to renting an apartment in this perfect town, rent prices are actually going down. Slipping at about the same rate, one-bedrooms saw a 14 percent drop over last year, and two-bedrooms went down by 13 percent. This keeps rent prices at a decent rate. The average one-bedroom apartment rents for $1,270 per month, and a two-bedroom is averaging out at $1,587 per month.

Home prices are going up, but just barely. Prices rose only 4.6 percent over last year. The median home price in St. Paul is $295,900.

Minnesota food prices

The cost of living in Minnesota is relatively reasonable, but food prices are actually on the higher end of the scale. Not every city is above the national average, but a few are.

  • St. Paul is 5 percent below the national average
  • Minneapolis is 2 percent below the national average
  • Mankato is 8.6 percent above the national average
  • St. Cloud is 13.9 percent above the national average

This aligns with shopping trends throughout the state, where the average Minnesotan’s monthly grocery bill is between $233 and $267. Now, what’s on that shopping list definitely impacts price. This can include ingredients to make your own Juicy Lucy or Tater Tot Hotdish. It could also mean splurging on a nice Walleye fillet. Regardless of what’s on your list, it’s good to know that ground beef is the most expensive in St. Cloud, but you’ll get the best deal on potatoes (for tots) in Minneapolis.

Minnesota utility prices

Winters in Minnesota are rough, which means your heater will work hard to keep your home warm and comfortable. The season is below-freezing temperatures and lots of snow. Heavy snowfall happens over a long season, from November to April, and the average number of annual blizzards is two.

Although winter is extreme, summer isn’t too bad. It’s hot and humid, but temperatures linger in the mid-80s. Your AC will run all summer long, but not to as big of an extreme as that winter heater.

As a result of this weather, utility prices can get high, however, overall, you’ll pay about the same as what’s average across the country.

  • Mankato is 3.7 percent below the national average
  • St. Cloud is 3.3 percent below the national average
  • St. Paul is 2.3 percent below the national average
  • Minneapolis is 1.1 percent below the national average

These close averages keep monthly energy bills in a very tight range. On average, expect to pay between $165 and $174 per month.

Minnesota transportation prices

Even with severely cold winters, certain cities in Minnesota are highly walkable. Minneapolis has a walk score of 75, and St. Paul’s is 61. Mankato and St. Cloud aren’t as walkable, but every city has a decent bike score, meaning Minnesota as a whole is pretty bike friendly.

This ability to get around by bike and on foot may positively impact transportation prices, making this particular expense in your cost of living in Minnesota below average. Of course, this isn’t the case everywhere.

  • Mankato is 7.7 percent below the national average
  • St. Cloud is 1.1 percent below the national average
  • St. Paul is 1.5 percent above the national average
  • Minneapolis is 4.8 percent above the national average

Public transportation, and owning your own vehicle, are most likely the two major contributors to your overall transportation expenses. Cars can cost a lot when you factor in maintenance, gas and paying for parking. Public transportation is a way to save a little money, even if you only use the service to commute back and forth to work during the week.

The METRO

Because the two cities are so close together, public transportation for Minneapolis and St. Paul combine through the METRO. The light rail, consisting of a blue line and green line, encompasses both cities. The blue line stays within Minneapolis, but the green line goes across the water.

The METRO also runs plenty of buses, a few rapid transit lines and a commuter rail. Fares vary based on time of day, so you’ll pay more during rush hour, which is from 6-9 a.m. and 3-6:30 p.m. Monday-Friday. Each fare is good for 2.5 hours. For local bus services, the non-rush hour fare is $2, and it’s $2.50 during rush hour. Six-hour passes are also available with a weekday rate of $4.50 and a weekend rate of $4.

The METRO bus also pops up in St. Cloud. Here there are 17 different routes that cross the city with a single-ride fare of $1.25. You can buy a variety of passes, as well from anywhere between $4.25 for a day pass to $47 for a monthly pass.

Mankato Transit

Operating its own transit system, the bus service in Mankato consists of eight routes that cover the entire city. This includes stops at Minnesota State University, Mankato. A single-ride fare is $1.50, but frequent rider passes are available in one-, 15- and 30-day passes. The monthly pass is $40 and is the best deal.

Minnesota healthcare prices

Healthcare prices in Minnesota can get high. Most cities are above the national average, and since this piece of your cost of living can include multiple doctors, there’s no way to know where the big bills will come in. Could it be a doctor’s visit, a trip to urgent care, the dentist or an eye doctor? What about those medications? Hopefully, your medical needs will stay affordable, but where you live could make the difference.

  • Minneapolis is 1.6 percent below the national average
  • St. Paul is 2.2 percent above the national average
  • Mankato is 2.9 percent above the national average
  • St. Cloud is 25.2 percent above the national average

As the most expensive when it comes to an average doctor’s visit, costs in St. Cloud reach $200.13. This is almost $50 more per visit than the least expensive city, Minneapolis. In fact, St. Cloud hits the top for an eye doctor visit and a dentist trip, although the price differentials aren’t as large.

Minnesota goods and services prices

Most cities in Minnesota hit above the national average when it comes to goods and services. These are all the items you put on the monthly budget that you could do without in a pinch. They include social activities, like grabbing a burger with friends, and maintenance tasks, like getting your hair cut.

The more items you have in this category, the higher your cost of living in Minnesota goes. Can you do without any if you had to?

  • Mankato is 4.8 percent below the national average
  • St. Paul is 5.3 percent above the national average
  • Minneapolis is 5.9 percent above the national average
  • St. Cloud is 6.5 percent about the national average

To decide if some budget cuts are necessary, based on these averages, it’s best to look at how much individual goods or services cost in each city. These are a few popular ones.

Although St. Cloud has the highest average when it comes to goods and services, it’s rarely the highest priced individually. Instead, that honor shifts based on what specifically you’re looking for. Minneapolis is the most expensive place to take a yoga class, and St. Paul has the highest haircut prices. When it comes to a burger, you’re going to pay the most in Mankato. Every city has its own pluses and minuses when it comes to pricing out all your bonus activities.

Taxes in Minnesota

Minnesota has a graduated income tax that hits four specific rates based on your income. You’ll either get taxed at 5.35 percent, 7.05 percent, 7.85 percent or 9.85 percent.

Sales tax in the state is a little less complex. Minnesota has a statewide rate of 6.875 percent. Localities are able to add an additional 2 percent to that total. At the maximum, for every $1,000 you spend shopping, $88.75 goes toward taxes.

Most cities don’t max out their sale tax.

  • St. Cloud is 7.625 percent
  • St. Paul and Mankato is 7.875 percent
  • Minneapolis is 8.025 percent

These rates align pretty closely with the average throughout Minnesota. Across the entire state, the combined average sales tax is 7.49 percent.

How much do I need to earn to live in Minnesota?

When analyzing the cost of living in Minnesota, being able to afford rent is at the top of your list. It will most likely be your biggest expense, and one that’s ongoing, at least until you decide to buy a property and pay a mortgage.

To calculate how much you’d need to earn to afford rent, you can refer to the experts. They suggest that 30 percent of your household income goes to this cost. With the average rent in Minnesota being $1,304, you’d need to make at least $52,160 for all the numbers to align.

The good news is the average household income in Minnesota is $74,593, so you’re well on your way to affording an average apartment, or even one with a few extras. To be sure, though, you can plug your specific information into our rent calculator.

Living in Minnesota

With all those lakes and the Mall of Americas, there’s really nothing that isn’t contained within Minnesota. As a great place for business, you can work hard, shop hard and hit nature hard all without going too far from home. What’s even better is that all this is pretty affordable.

The cost of living in Minnesota makes it accessible to most, but in order to figure out if it will work for you, make sure to take a close look at your own budget and must-haves. You may even find your ideal Minnesota city in the process.

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The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of August 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.

Source: rent.com