Minneapolis, MN

Minneapolis continues to track expectations after performing as expected in Q2 2019.

Residential is still significantly down from this time last year and there are further challenges ahead, with Minneapolis looking to push private developers to fill the city’s gap in affordable housing by having them set aside units in all future projects. While this has been successful in other cities, it does bring a challenge to the financial viability of the project. For example, when local laws were changed in Chicago recently, a number of projects went on hold as the development did not provide the returns necessary to make it viable. Home purchasing has also reduced in the Twin City in Q2, dropping 8.2% year-on-year in June 2019 — all of which is indicating a challenging time ahead for residential. Other sectors are more fortunate, including hospitality (with projects such as Rand Tower), but the best performing market, by far, is infrastructure. Labor markets are still tight, a situation which hasn’t been helped by recent wage disputes and more recently by picketing from the Carpenters Union. Unemployment has remained constant and is still above the lows of Q4 201810,000 jobs have been added since the beginning of the year and this is expected to increase to the end of Q3. 

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* Other structures include religious buildings, amusement, government communications, and public recreation projects.
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