AgentMarkets & Economy

The housing problem Minneapolis would rather forget

Why even a strong job market couldn't stave off distress tsunami
Published on Feb 15, 2013

Minneapolis, Minn., has proven to be a hard market to predict. During the heart of the Great Recession, the housing market there was hard-hit yet employment remained stable. Then when the housing market in other metros started to improve post-recession, Minneapolis home prices redeflated, and, as a result, the city lags the recovery starting to happen elsewhere. Minneapolis is often perceived as a white-collar town, as five Fortune 500 corporations plus a host of medical device companies and healthcare firms maintain their headquarters there. United Healthcare, which is the largest healthcare insurance company in the U.S., is based in Minneapolis and it kept hiring and expanding throughout the recession, according to Herb Tousley, director of the Shenehon Center for Real Estate at the University of St. Thomas. "Our unemployment hangs 1.5 percent to 2 percent below the national average," Tousley said. "At the end of 2012 our unemployment was at 5.8 percen...

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