Andy Babula, finance professor and director of the real estate program at the University of St. Thomas Opus College of Business, spoke with Minnesota Star Tribune about how home prices in Minnesota are climbing faster than incomes, putting homeownership – once a key symbol of middle-class stability – beyond reach for many residents.
From the article:
... In Minnesota, the median household income has fallen relative to inflation, landing at about $87,000 last year. White and Asian earners tend to make more, while Hispanic, Black and American Indian earners tend to make less. ...
... The situation is forcing more families to consider other options, including renting.
“This is what coastal cities have been experiencing for many years, where buying a home was simply not affordable,” said Andrew Babula, director of the real estate program at the University of St. Thomas.
Babula said homebuilders are scrambling to meet the needs of families who can no longer afford a typical single-family house. That includes building more affordable houses, like those without basements. Twin homes and townhouses, which typically are less expensive because they require smaller lots, also are on the rise.
“It’s not the post-World War II dream,” he said. “But you’re still achieving homeownership and building equity.” ...
