Even though Minneapolis and Saint Paul continue to be hot spots for new apartment and condo development, and although home prices are expected to increase more than the national average, the Twin Cities rank among the least favorable cities nationwide for residential "fix and flip" investors, according to a new ranking of 150 American cities by Wallet Hub. Tied with San Antonio, Texas, Minneapolis and Saint Paul have among the lowest percentage of fix and flip activity in the country.
On the surface, that seems odd.
Remodeling for Profit
A similar kind of remodel activity in the multi-family market has led to a hot market for commercial investors, who continue to buy up and renovate older buildings, warehouses and office complexes. The
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At a recent meeting of the Minnesota NAIOP in Golden Valley, a Los Angeles-based consultant outlined his predictions for the future of commercial development, warning that the current cycle will be ending next year. He sees big changes ahead, and he thinks the "shift" will signal a five-year downturn in the market, based partly on generational factors. But he also noted that the next uptick should begin in 2023.