Why It’s Better To Buy A Minneapolis Duplex Than Rent One

Minneapolis Skyline from Lake CalhounOver the weekend, Forbes magazine made it official. According to them, it makes more sense to buy a Minneapolis duplex than it does to rent one.

In an article published on June 24, the magazine maintains almost 4 million families have become renters since the foreclosure crisis began.

Forbes’ Best And Worst Cities For Renters

As a result, there is more demand for rental housing, and a stagnant supply thanks to a lack of new construction.

The National Association of Realtors believes this will cause rents to rise an average of 4 percent this year, and another 4 percent in 2013.

To arrive at their rankings for the places best to rent or buy, Forbes used the average rent in the first quarter of 2012 and how much that changed since 2011, vacancy rates, and compared the area’s average monthly rent to the average monthly mortgage payments.

While Minneapolis didn’t “win”, it did finish second to only New York City on Forbes’ list for worst cities for renters. With vacancy rates at 2.5 percent (lower still in the downtowns), the average monthly rent is up 2.3 percent since the same time last year.

Meanwhile, the average monthly mortgage payment has dropped 30 percent since 2006, meaning a mortage payment will, on average, be $122 a month less than rent.

Of course, in a duplex, since you have a tenant paying most of the mortgage to begin with, your costs should be lower still. In some instances, you may even get paid to live in your unit.

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