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Minnesota Milestones 2010: Urban home values
 
 
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The following idicator summary is from the 2002 Minnesota Milestones and does not neccessarily reflect the current data trends.
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Indicator : Urban home values

Rationale: Change in home values is an important indicator of social and economic vitality for neighborhoods and communities.
About this indicator: Change in market value of existing Twin Cities area homes was mixed in the first half of the 1990s, but stronger in the latter half of the decade. The rise in market values coincided with a strong economy and an increased demand for housing. This indicator measures change in the average value of homes that existed in 1990, not the change in the average cost of housing.

In suburban areas, the average inflation-adjusted value rose 30 percent between 1990 and 2000, from $127,543 to $165, 254, easily surpassing the increases in Minneapolis and St. Paul at 11 and 8 percent, respectively. Suburban Hennepin County values grew 25 percent and suburban Ramsey County values rose 13 percent. Within Minneapolis and St. Paul, there was wide variation among neighborhoods.

Flat or declining property values can discourage investment in neighborhoods and undermine a homeowner's long-term financial status. On the other hand, low prices also can attract moderate-income homebuyers if the cost of homes elsewhere becomes prohibitive and the supply of housing is strained.

Annual change in assessor's average market value of homesteads in the Twin Cities' suburbs
YearData
Annual change in assessor's average market value of homesteads in Minneapolis, Minnesota Department of Revenue Edit trend | Edit data
Annual change in assessor's average market value of homesteads in St. Paul, Minnesota Department of Revenue Edit trend | Edit data
Annual change in assessor's average market value of homesteads in the Twin Cities' suburbs, Minnesota Department of Revenue Edit trend | Edit data
Minneapolis St. Paul Suburbs
1991-2.5% -5.8% -2.6%
1992-3.1% 0.1% 2.0%
1993-0.8% 0.1% 0.5%
19941.1% 0.1% 2.8%
1995-0.2% -1.0% 3.1%
1996-0.0% 0.2% 2.5%
19975.4% 2.6% 3.6%
19981.5% 3.5% 3.6%
19994.9% 4.2% 4.9%
20004.7% 4.6% 6.0%
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Things to think about: This indicator includes only homes that were owner-occupied in 1990, so newer homes are not included in the trend. Still, values increased faster in suburban areas then in older, built-up areas. The strongest growth in housing values was for those areas where more recent construction took place; these are predominantly in the suburbs. For example, between 1990 and 2000 Scott County home values rose 75 percent after adjusting for inflation.
Technical notes: This indicator should be used cautiously. Market value assessments vary significantly by community and by the individual assessor. Assessed values typically lag behind actual sale values. Values are adjusted for inflation using the National Consumer Price Index U-series. Data includes owner-occupied homes and some small apartment buildings. Suburban areas are defined as the area outside of Minneapolis and St. Paul in Hennepin, Ramsey, Anoka, Carver, Dakota, Scott and Washington counties.
Sources:
  • Minnesota Department of Revenue, Property Tax Division, unpublished data, www.taxes.state.mn.us
  • U.S. Bureau of Labor Statistics (inflation data), www.bls.gov
    • Related 2002 Milestones indicator:
    Other related indicators:
    Local data:

    Milestones is a product of the Minnesota State Demographic Center, a division of the Department of Administration