How can people afford MN suburbs? (Minneapolis, Rochester: renting, condo, mortgage) - Minnesota - City-Data Forum

anil · 07-03-2006, 01:05 PM

I'm a software developer and would probably make about 90K in MN? My wife won't be working for a few years as she wants to go to nursing school. I've been trying to find a place in MN but everything in the suburbs is close to 200K. I see some of the condo's in 150s.

Just wondering how people afford to live here??? Do both husband and wife work?

I'm just baffled on how expensive this city is to live in. I was thinking that moving to Minneapolis would be a great career move but am starting to wonder if I can afford it at all...

angelaf · 07-03-2006, 08:01 PM

Many, if not most families have dual incomes. I wonder how people afford it too... but living in crazy amounts of debt has become so accepted, people don't think anything of it. Hardly anything is paid for in cash anymore... I think most people live beyond their means. But you're looking at the western suburbs, which I think are the more affluent suburbs, so that's part of why the prices are so high.

T.S. · 07-04-2006, 04:05 PM

Quote:

Originally Posted by anil

I'm a software developer and would probably make about 90K in MN? My wife won't be working for a few years as she wants to go to nursing school. I've been trying to find a place in MN but everything in the suburbs is close to 200K. I see some of the condo's in 150s.

Just wondering how people afford to live here??? Do both husband and wife work?

I'm just baffled on how expensive this city is to live in. I was thinking that moving to Minneapolis would be a great career move but am starting to wonder if I can afford it at all...

You should easily be able to afford a 200k house while making 90k yearly. You can't get much for under 200k in the suburbs of most major cities in the country right now, it isn't just MN.

Quote:

Originally Posted by anil

I'm just baffled on how expensive this city is to live in. I was thinking that moving to Minneapolis would be a great career move but am starting to wonder if I can afford it at all...

Where do you live now? I thought Minneapolis is usually ranked towards the top of the list for affordable major metro areas.

Kiplinger's personal finance magazine recently ranked it the 2nd "smartest place to live" behind Nashville, TN, factoring affordability, cultural and leisure activities, education options, and quality housing.

MinnesotaGirl · 07-04-2006, 06:48 PM

I have lived in Minnesota all of my life and have found it to be a wonderful state. The outdoor activites are fantastic (fishing, swimming, skiing,biking...) The Minneapolis area has several beautiful lakes, all with trails for biking, walking and rollerblading.

As for living in the suburbs, they are okay. However, if you want to be close to work and the cities, then live in Minneapolis. South Minneapolis is great as well as some other areas. You need to make contact with a good realtor, perhaps Edina Reality or Coldwell Banker and look at all of the neighborhoods.

Living in Minnesota has definately gotton more expensive over the years. The housing market is inflated, but the job economy is good and the people are truly 'Minnesota Nice'.

Good luck!

anil · 07-05-2006, 11:13 AM

How about if I'm willing to commute? I need a Single Family Home upto 150K which is no more than 20 years old. Where can I find one? What suburbs?

I'm okay with a 45 minute commute to work.

T.S. · 07-05-2006, 05:46 PM

Quote:

Originally Posted by anil

How about if I'm willing to commute? I need a Single Family Home upto 150K which is no more than 20 years old. Where can I find one? What suburbs?

I'm okay with a 45 minute commute to work.

I don't think you can find what you are looking for without going farther than 45 minutes out or into the minneapolis ghetto. I am currently about 45 minutes away from minneapolis without traffic. My average size new build was $169k three years ago. It just sold for $189k last week and we priced it cheapest in the development and area for a fast sale. Anything new in my current area is going for $200k+.

restlessinmn · 07-05-2006, 09:00 PM

I think you may want to consider renting instead of buying in that price range. We've moved lots of times and we never buy right away. We always need time to get to know the area and decide the neighborhood that is the best fit.

We moved here almost 2 years ago for a great job opportunity. We haven't bought yet because we aren't sold on staying in MN. We are glad that we didn't buy right away because prices are coming down a bit and had we decided to move soon, we would've been upside down in a house.

edit - I think Angelf is right about people living beyond their means and have lots of debt. We live in a western suburb and I'm convinced of it. If you have set a limit of $150k don't fall into the trap of 'you make enough to qualify for $200k'. We could 'qualify' for a big house, expensive cars, etc... but the stress of trying to repay it all and the time spent away from family wouldn't be worth it.

T.S. · 07-05-2006, 09:32 PM

It has been crazy watching the prices go up over the years. My parents had a 2200 sq foot, 3 bedroom, 2 bath house built 1 block off Lake Minnetonka in Mound for $65k in 1985. They sold it for $170k in 2000. It sold again for $270k in 2005. It will probably be over $300k next time.

restlessinmn · 07-05-2006, 11:17 PM

Mound is a nice lake community with great schools. We considered a place right on the lake not far from Enchanted Island but the commute would have been too much. I think that it *unfairly* gets the bad rap of being the 'armpit' of Lake Minnetonka. It is a lot prettier that most places that I've been. From what I've seen in the last few years, it has done a great job of revitalization. Plus, I find the homogenization (i.e. strip mall-franchise mentality) to be unappealing.

I think that prices have to come down eventually. It may take awhile but it will happen. Interest rates will probably have an impact which, unfortunately, won't affect affordability much. Best advice- start saving now!!!

It's just sad when kids can't afford to live in the town where they grew up. It's not unique to MN...that happens everywhere across the US. Either kids are dying to get out or can't afford to stay.

golfgal · 07-06-2006, 07:37 AM

Houses in our area were selling for $150,000 or even less just a few years ago 7-8 years, now they are selling for over $400,000 and WAY more then that. If you had a home and bought on the low side and sold, you could put a big chunk of change down on another home and have a pretty low mortgage. If you bought when the homes were more reasonably priced, your mortgage isn't much. That is how a lot of people afford the suburbs. Not everyone is in debt over their heads to afford these things.

They chances of finding a home in a safe neighborhood in the twin cities metro area under $150,000 is basically zero. Is there any chance you can work from home? If so, you might want to look into the Mankato area-not Mankato proper but some of the commuting towns like Owatonna, New Ulm, etc. You can find a reasonable home for under $150,000 and your wife could attend nursing school at Mankato State.

Another option would be to look into the Marshall area. You would be able to find a home in your price range. There are several larger employers that are always looking to fill computer related jobs. Southwest Minnesota State is there as well.

Some of the smaller towns around Rochester might be affordable too. IBM is headquartered there so computer jobs are available.