Among the would-be home buyers struggling to find places that fit their needs and their budgets are younger people who have never owned their own home before. The so-called “millennial” generation has reached its 30s, often with enough money saved up for a down payment and a desire for home ownership.
But as we discussed in our Apr. 19 post, the Twin Cities housing market remains red hot. Homes do not last on the market for long, and prices are rising, with the median sales price at $222,000 as of March. This is squeezing many first-time homebuyers out of the existing home market.
This is where developers are stepping in, according to the Minneapolis Star Tribune. More and more homebuilders are looking at entry-level buyers as a viable target. A recent nationwide survey by Builder Magazine reported a 25 percent increase in the number of companies focusing at least half of their time on building smaller homes for first-time homeowners.
In the Twin Cities, this generally means townhouses in outer-ring suburbs like Hugo, Lake Elmo and Forest Lake. Such starter homes often cost under $300,000, and feature flexible floor plans that allow buyers to customize the living space.
Of course, with any new construction there is the possibility of mistakes that lead to serious damage down the road. Minnesota law does not abandon homeowners stuck with a bad foundation or a roof made of inferior materials. Depending on the nature of the defect, the developer or subcontractor may be liable for defects up to 10 years after finishing construction.
To get the compensation you deserve, contact a real estate law attorney.