Minneapolis 2-Bedroom Condos Under $300K: Do They Even Exist Anymore?July 5, 2019 by Joe Grunnet
Over the last decade, the steady rise in real estate prices and rent in Minneapolis leave many people wondering, “Can I even afford to live downtown”? As of June 2019, the average sales price of Minneapolis condos has increase 14% with a 9% increase in average price per square foot.
Why the Increase in Price?
Though developers continue to build new condo buildings, they are unwilling to build new construction 2-bedroom units at $302/sq. ft. because of land costs, construction costs, labor shortages, liability and risks, and low profitability.
These numbers may seem alarming, but DRG can help you live your dream urban lifestyle. And while it might seem that living in Minneapolis is out of your price range, we’re here to tell you that’s not the case!
Though few and far between, a 2-bedroom Minneapolis condo under $300K is possible to find with a little help from DRG! But before we can dive into how our real estate agents can help you at any price point, let’s breakdown why condos are priced the way they are and what factors can cause prices to jump.
How Are Condos Priced?
The first thing an urban realtor will do when pricing a condo is pull comparable properties from the MLS (multiple listing service). We typically go back 12 months to pull all the “most-like” properties. We then gather as many as we can to get a rough idea of property values.
Next, we dive in deeper and look as other contributing factors affecting price:
- Floor – Which floor is the unit located on? The higher up the floor, typically the more it will go for.
- Views – Does the property have views of downtown Minneapolis? Or is it looking directly into another building. All views impact pricing.
- Parking Stalls – How many parking stalls does the unit come with?
- Updates – Has the unit had recent updates done to the interior of the unit or of the building itself?
Once we gather all this information, we’re able to determine the sales price for a listing or help buyers decide what they should offer on a 1-to-2 bedroom condos.
Recent Raises in Condo Prices
Now that we know how condos are priced, we need to talk about why condo prices continue to rise in Minneapolis. The main idea is simple: supply and demand. In addition to recent low interest rates, there is also an increasing demand to live in the urban neighborhoods. The “amenities”, including parks, restaurants, shopping, activates, etc. has greatly improved in Minneapolis over the last decade. This livability of urban neighborhoods, including the North Loop, which is the fastest growing neighborhood in Minneapolis, greatly contributes to the demand of people wanting to live downtown.
Whether you work downtown and want to shorten your commute, or you’re looking for an urban lifestyle, no one can deny that the demand to live downtown has directly impacted overall condo costs.
How DRG Can Help you Find the Best Priced Condo
Curious how DRG can help? We pride ourselves on being able to work with any buyer at any price point. So, if your dream home is a 2-bedroom condo under $300K or a studio with great access to parks and walking trails, we have you covered! We are Minneapolis real estate experts and are able to tap into our expertise and knowledge of the downtown area to find you a condo that fits your lifestyle, needs, and budget.
And getting started is easy! Our easy to use Condo Search tool allows you to search for condos in your price range, as well as filter by beds, baths, parking, and more! You can also visit our Condo Guide to discover neighborhoods and condo buildings throughout Minneapolis. Once you find your spot, contact us to set up a meeting with one of our urban realtors!
With DRG, we’ll get you on the right path to the condo of your dreams!