Minneapolis and St. Paul boast economic strength and renewed homeownership

Unemployment and vacancy rates in the Twin Cities area are low compared to the rest of the country as fundamentals continue positive trends from 2011.

The metro area’s population increased by more than 23,000 as many businesses plan to expand in the area, according to Hendricks & Partners. Local officials are seeking to enhance job growth prospects, and have created the Minneapolis Saint Paul Regional Economic Development Partnership, or Greater MSP, in order to pursue that goal.

Projections call for 75,000 jobs to be created without the Partnership’s efforts over the next five years, and officials have set another 25,000 as their target.

Recently, Minneapolis and St. Paul have appeared at the top ranks of the nation’s cities when compared to others in terms of metrics including economic vitality, education and entrepreneurship. As these strengths gain attention, Hendricks & Partners notes that home purchases have risen somewhat.

The renewed shift toward homebuying is strong enough that it is expected to contribute to the rental vacancy rate increasing to 4 percent from the current level of about 3 percent.