Urban Planning and Shifting Demographics Drives Surge in Twin Cities Downtown Housing

MINNEAPOLIS-There seems to be several factors behind the fact thatone of the fastest growing sectors in residentialdevelopment in the Twin Cities is the downtownhigh-rise or townhome development.Urban planners who have become adept at schemes tounsnarl traffic jams and redevelop the inner city anda rise in households with no kids and big incomes.

First, the facts: Twin Cities permits taken out tobuild urban multi-family housing projects haveskyrocketed to 1,038 last year, up from a mere 60 in1991, according to the National Multi Housing Council.Prices in the once-dormant downtown condo market havedoubled in the last few years, and demand isoutstripping supply, say local brokers.

If the aging Baby Boomer has anything to do with it,the U.S. could be in the early phase of what could bea very long boom in downtown housing. The key marketfor the downtown condo is the empty nester from 45 to64 years old. They don’t have to worry about schools.They want convenience and fun, not long commutes andyard work. They have money. But most importantly, theyare the fastest growing segment of the U.S.population.