Real Stories from First-Time Homebuyers in Minnesota’s Discouraging Housing Market

Jun 14

Not enough homes to go around

A healthy housing market has about six months of inventory. For over a year now, Minnesota’s housing market has hovered near a one month’s supply of homes for sale, meaning our housing market has been near crisis levels for months. Add now rising interest rates on top of that and the process of searching for and buying a new home has become a nightmare for most buyers. We talked to three young couples at varying stages in the process of buying their first home to paint a better picture of what it’s like.

Meet the couples battling the current market

Cassandra + Greg

Sick of paying high rent prices in Greater Minnesota and wanted to find a starter home to start building their family.

Josie + Bobby

Hoping to build their future together and invest their money into a home of their own instead of bouncing from apartment to apartment.

Bryan + Kristen

Looking for a place of their own to call home and a means to start building wealth and equity.

Dreaming of homeownership

For many young homebuyers, the dream of homeownership seems impossible. “I always thought that I’d buy a house after I got out of college,” said Cassandra. “But as I approached my mid-twenties, that dream felt so out of reach.”

A common theme across millennials and Gen Z: they can’t afford to own homes. No matter the situation: post-college student debt, minimum wage pay, high rent as a single tenant, saving up for a wedding, or trying to start a new family, many young people are operating on a tight budget. Most of their income is designated for living necessities like groceries, health care, and housing, making it extremely difficult to save up for a down payment. Still, high rent costs push many young renters to consider purchasing property. “We always felt like with the money we spent on rent, we could be building equity in a home of our own,” said Bryan.

The home-search rollercoaster

After careful consideration and conversations with their partners, Josie, Cassandra, and Bryan all decided to start their home search. But the housing market they encountered proved to be troublesome. Housing prices have more than doubled in the last 50 years, even after factoring in inflation. Plus, this is the most competitive market we’ve seen in years. Homes receive multiple offers over list price and are snatched up within a matter of days. It’s difficult for those searching for homes to keep up. “We were constantly searching online, viewing photos, and reaching out for tours,” Cassandra recounts. “More than once we got responses that told us the home already had offers in, so we didn’t stand a chance.”

Josie and Bobby felt pressure to rush their decision. “The house-hunting process has been very difficult and frustrating,” says Josie. “The timelines that exist in the market right now elicit a lot of stress as they require making decisions within 24-48 hours of seeing the home. Gone are the days of thinking it over and talking with your family or mentors.”

Bryan and Kristen exhausted themselves touring, communicating with their Realtor, and discussing potential home options. “We were only house hunting for a few months but had viewed over 30 homes and put in a total of 7 offers before ours was accepted,” shares Bryan. “Every single one of those offers was above asking price with all inspections waived.” Still, they were often beat out by more competitive offers.

After exhausting searches, multiple rejections, and a rollercoaster of emotions, young buyers are left feeling hopeless.

“With such a financial commitment at stake, it's been very taxing to ride the wave of emotions,” Josie shares. “First, you have to muster up enough confidence and excitement to put in an offer on a home that you feel good about, then try to stay guarded but also excited as you anticipate the outcome, and then be disappointed by the news that yet another all-cash offer has taken what you've been visualizing as your first home.”

Bryan and Kristen tried to remain positive, but often felt discouraged after continued losses. “It was hard to get excited about a house because you didn’t want to get your hopes up if your offer isn’t accepted,” says Bryan. “It was a very stressful experience, and we kept questioning whether it was all worth it.”

Let’s make housing accessible for everyone, everywhere

Both Bryan + Kristen and Cassandra + Greg were able to find a home to call their own. But Josie, Bobby, and many others haven’t been so lucky. Because of competitive markets, lack of inventory, and high prices, the dream of homeownership feels unattainable for so many. Let’s work together to change that.

Home is so much more than a place to live. It is a sanctuary, a safe place, a school, an office, a chef’s domain, and so much more. With all its messy beauty and genuine love, a house is the place where life happens. It’s where we grow up and grow old. It’s where we find comfort. It’s where our families gather.

“Owning our home means so much for us,” Bryan shares. “We not only have our own space to make our own, but we are able to feel part of a great community.”

Cassandra and Greg feel privileged to own their very first home. “I don’t have to worry about landlords or roommates or parking on the street,” states Cassandra. “We have a place to host friends and grow our own family when the time comes.”

Homeownership builds self-esteem, wealth, health, families, and even strong communities. Together we need to build more houses so more people can benefit, because homeownership is all of it.