Sustainable home ownership

Coins, moneySmart home ownership isn’t choosing a barely affordable home based on the school district. Just because the school district is highly rated doesn’t mean your child will get a good education or even graduate from high school.

Struggling to make the mortgage payment, which includes ten thousand dollars in property taxes each year, can cause stress. Stress affects everyone in the household.

When we are young, we may think we will make more money each year until our house becomes more affordable. It doesn’t always work that way. People get sick or have accidents, and sudden job layoffs happen.

I write a similar article every spring because it is in the spring that I pay the property taxes and insurance for the year. I always feel a sense of relief after those bills are paid. We paid off the mortgage more than a decade ago. It is liberating not to have to make rent or mortgage payments.

Retirement doesn’t seem like a good option for me, but I have some flexibility because there is no mortgage or rent.

The number of homeowners over the age of 64 who have mortgages has increased over the last couple of decades.

In 2022, just over 40% of homeowners older than 64 had a mortgage, according to a report from the Joint Center for Housing Studies of Harvard University. This represents a significant increase from roughly 25% a generation ago. 

 

Housing Affordability Gap persists

We need about 420,000 homes on the market that are priced below $255,000 so that households that earn below $75,000 a year can afford a house.

WASHINGTON (May 15, 2025) – U.S. households earning $75,000 a year can only afford 21.2% of home listings as of March 2025 – up slightly from 20.8% a year prior and representing the biggest gain of any income group – demonstrating that the nation’s housing affordability gap persists, according to the National Association of Realtors® and Realtor.com® 2025 Housing Affordability & Supply report.

The report analyzes the shortage of affordable homes across different income levels in the current U.S. housing market. It provides a real-time, income-specific snapshot of housing affordability, examining what home buyers at various income levels can afford based on standard lending criteria.

For-sale housing inventory increased nearly 20% nationwide in March 2025 from one year earlier, and while this gain marks progress, it remains far from pre-pandemic conditions.

“The housing market is at a turning point,” said Nadia Evangelou, NAR senior economist and director of real estate research. “More homes are hitting the market, and it’s encouraging to see the greatest housing-supply gains among middle-income home buyers.”

Housing affordability info graphic
Housing affordability

I don’t see the housing market as being at any kind of a turning point.

The housing market continues to favor sellers

There is maybe a little glimmer of hope that one day we will see a balanced housing market that doesn’t favor buyers or sellers. The current market favors sellers as demand remains high and supply remains low.

Here is an infographic from the National Association of Realtors that shows housing supply and demand in the US.  Real estate is local.

infographic that shows housing supply and demand
Housing supple and demand infographic

April 2025 Home Sales in Minnesota

Minnesota home sales infographic
Minnesota Realtors Housing Market Report

According to Minnesota Realtors:

Tariff announcements in early April triggered market uncertainty, causing mortgage rates to swing from a low of 6.6% to nearly 7.1%. Rate fluctuations (in part) fueled rate-sensitive buyers to sign more purchase agreements, leading to a 2.8% increase statewide. Sellers were more active, with new listings up 7.2%, while buyer activity was relatively flat.

Inventory is moving in the right direction, rising 8.5% statewide and reaching the highest April level since 2020. The statewide median price reached $360,000; the 2.9% increase is partly due to more activity in new home construction and luxury sectors. On average, homes spent 44 days on the market.

This spring, buyers and sellers face a market with both more choice and more uncertainty. Despite economic and trade concerns, serious buyers remain active and determined.

April Year-Over-Year Summary of Key Market Indicators:

Closed sales: 5,537 (down 0.8%)

Median sales price: $360,000 (up 2.9%)

Average sales price: $418,831 (up 3.4%)

New listings: 9,851 (up 7.2%%)

Pending sales: 6,498 (up 2.8%)

Days on the market: 44 (up 4.8%)

Homes for sale: 14,371 (up 8.5%)

Months Supply: 2.6 (up 13.0%)

 

Repurposing Vs up cycling

It is Friday, and Fridays are for fun. A few weeks ago, I bought a set of queen-size sheets from the local Goodwill store. They are 100% polyester, not something I want to sleep on. I bought them for the fabric and made a new shower curtain and other curtains for the bathroom. My total expenditure was less than $15, and between measuring, cutting, and sewing, I completed the project in an evening. I call this upcycling.

I consider my use of the sheets to be upcycling because curtains are a much better use for polyester. The pillow cases will be used for storage bags. I may remake them or just leave them as they are, and use one pillow case as a liner and the other as the outside of the bag.

What some folks call upcycling, like cutting up a wearable sweater to create mittens, seems more like downcycling, but I suppose if the sweater is worn out, then it is being upcycled.

Repurposing household items can be fun. After the lid to the cookie jar broke, I started using the jar as a flower pot. To me repurposing means using an item for some purpose other than what I bought it for. If my new use required modifications to the item, then I would call it upcycling.

In the picture, I have an old barbecue grill and the soap holder we used to have in the shower repurposed.

Grill
Grill with red, white, and blue flowers 
soap holder - planter
Decorative planter

If I repurpose items that I already have, I won’t have to pay extra for the tariff. If I upcycle items that I bought at a thrift store, I don’t pay tariffs on those either, and maybe I am keeping fabric out of the landfill.

Throw back – last great flood

Mississippi River
Mississippi River at downtown St. Paul, April 2019

In 2019, the river flooded as it often does. This year, the water is low due to a lack of rain. The Mississippi River is considered the most endangered river in 2025 by American Rivers, a nonprofit environmental advocacy organization. Due to Federal funding cuts for flood mitigation. The lower part of the river flooded last April.

St. Paul is a river city and the last great city of the East.