What's Hot (& Not) in the Twin Cities

Death to the Condo! Long Live the Condo!

Sorry, condo owners—2020 was not your year. We saw significant slowdown in demand and where other property types rose in value, condos only crawled in growth. Whether the properties were in the North Loop, Lowertown, or in St. Louis Park, we saw cooling across the board.

Typically, we think of condos as canaries in the mine. During the 2008 financial crisis, this property type plunged months before singlefamily homes and didn’t rebound until much later. They’re a good way to indicate where the general market will go.

So, do cooling condo prices mean general market cooling? We don’t think so. Our hunch is that the condos are uniquely impacted by the pandemic. Major selling points—lots of people around, proximity to entertainment and breweries, no lawn to mow—look like major bummers during the pandemic. Once COVID passes into infamy, we anticipate condos will look a lot more like the general home market.

At Long Last: Longfellow

We’ve thought this South Minneapolis neighborhood would go through serious development for awhile. Finally, in 2020, we saw signs of movement.

Longfellow is an urban family neighborhood nestled between 35W and Cooper, a neighborhood running along the Mississippi, and home to some of the Twin Cities best establishments: Moon Palace Bookstore, a vibrant host to poetry readings and hard-core shows; Blue Door, always in the running for best burger; DuNord, the first Black-owned distillery in the United States; the Trylon Cinema, one of the last independent theaters anywhere; and so many more hidden gems. We could see Longfellow growing into something like King Field or Whittier, but part of us hopes it stays the same. It’s just so nice.

The Water Phenomenon

While condos languished under COVID-19, water did much better. If your home is on a lake, you can enjoy that sunset view a little more than you already are. Homes with a waterfront saw a 12% increase in value in 2020. This is a stunning change from previous years, where the market for waterfront properties was relatively flat compared to the wider market.

Pools were also hot. According to Dan DeKock, owner of Sparkle Pool, demand skyrocketed 60% over an average year in 2020, with new installs being pushed back until late summer and early fall 2021—if you can still find a contractor. That won’t be your only concern. Increased demand has put a squeeze on materials and labor, pushing costs for pool installations up by roughly 15% overall.

So if you’re looking to get a killer tan sipping margs poolside this summer, start making calls and saving your pennies. You won’t be the only one.