I have been writing about the shortage of housing for a couple of years. In the metro area, there isn’t a lot of new construction. A new luxury apartment building here and there and some large expensive homes and even a few affordable housing units.
At the same time, the population and the need for housing have grown.
A large number of current homeowners are not ready to sell. They are older and more likely to stay put than to move. The end result is that there are not very many homes available and that is driving prices up.
Here is some data from the Met Council:
Most of the growth is in Minneapolis and St. Paul. The math is simple in that the population is growing faster than the supply of housing.
I think the situation will ease up a bit in the next decade unless we people start moving out of the area or we start building affordable housing.