This report contains an analysis of the housing market in Minneapolis, Minnesota—specifically the area referred to as North Minneapolis, the northwestern portion of the city. Called the Housing Market Index (HMI), it evaluates how each residential block in the area’s 12 neighborhoods compares to the average of all residential blocks in North Minneapolis. In addition to serving as an analytical tool for monitoring conditions of the area’s housing market, the HMI may also serve as a guide for developing policy recommendations and investment strategies for long-term housing stabilization. And unlike many other housing market analyses, the HMI provides a “zoomed-in,” block-level picture of the housing market by using locally produced parcel-level data.
The HMI examines the housing market through a combination of four variables: value retention, owner occupancy, physical condition, and long-term vacancy. Value retention calculates the change in estimated market value of the homes on a given block from December 31, 2006, through December 31, 2012. Owner occupancy looks at the percentage of homes on a block that are currently occupied by owners. Physical condition assesses the current structural integrity/quality of the homes on a given block. And long-term vacancy determines the percentage of homes on a given block that are vacant for eight months or longer.
This report is organized into four sections: a brief description of North Minneapolis’s housing stock and recent property investment history; a summary of the findings for the 12 North Minneapolis neighborhoods, including maps of each neighborhood; a description of the methodology used to construct the index; and an appendix containing maps of North Minneapolis that display each of the four HMI variables.