Unlock the Potential of Minneapolis Condo Living
Multifamily Construction Dwindling
At a time when multifamily construction is on the decline, leaving potential buyers with limited choices, the four-story Fletcher at Linden Hills emerges as a beacon of hope. The most recent major condo projects in the city, such as the Eleven on the River in the Mill District and Four Seasons Private Residences in downtown Minneapolis, both broke ground in 2019. Since then, the market has seen a shift, with developers focusing more on luxury rentals, especially in the suburbs. During the past year, even rental building projects have seen a significant pullback due to higher mortgage rates and construction costs.
Last week, Housing First Minnesota reported that in November, developers pulled only enough permits to build 196 rentals, a 45% decrease from the previous month. Meanwhile, builders pulled 660 permits for single-family homes, a 15% increase from the same time last year. This year, housing construction has plummeted compared to previous years. In the first 11 months, cities issued permits for 7,700 houses and apartments, about half as many as two years ago. And among this total, only 1,840 are multifamily units, accounting for less than a quarter of planned home building in the metro.
Strong Demand for Larger Units
Steve Sohre, broker/owner of the Realty House, has been marketing the Fletcher project since July. With no new construction in the area for several years, he remains optimistic that buyers will come forward. Demand for the larger units has been particularly robust, with about two-thirds of the penthouse units already reserved. “There’s not much product out there for them. They want something larger. They can’t fit into 1,300 or 1,400 square feet,” he said. “It was a bit uncertain how the market would react, but the appetite is clearly there.”
Ken Raskin and Lynn Lederman are among those looking to make a move. They plan to sell their suburban Golden Valley home and move to Linden Hills to a new construction condo where they currently stand. This shows the allure of the Fletcher project and its potential to attract buyers seeking an alternative to downtown Minneapolis.
Desirable Location and Appeal
Mary Bujold, president of Maxfield Research, a real estate research and consulting firm, believes that despite the challenges facing the condo market, the Fletcher project’s location makes it highly appealing. It offers buyers an option that combines the charm of a south Minneapolis neighborhood with the luxury of upscale condos. This unique combination is likely to attract those who want a different living experience in the city.
The Fletcher at Linden Hills is not just a building; it’s a symbol of the evolving Minneapolis condo market. With its potential to bring a significant number of upscale condos to the area, it could have a lasting impact on the local real estate landscape. As developers seek final approval and potential buyers eagerly await, the future of this project holds great promise.
How Courses at Mid Kent College Help
Mid Kent College offers a range of vocational courses such as bricklaying, plumbing, and carpentry for students aged 16 - 18. Additionally, it provides adult education and apprenticeships. Currently, around 800 teenagers are studying construction skills courses at the college. Staff claim that the demand is so high that there could easily be 2,000 students. The Construction Industry Training Board estimated that the government's homebuilding plans would require up to 159,000 more workers. This is in addition to the 250,000 already needed to meet other forecasted building works through to 2028.The Challenge of Recruiting Teachers
Mr. Cook, the college principal, highlights the challenge of finding people to teach courses like bricklaying. His budget limitations mean that staff would earn "around £20,000 less" in the classroom compared to what they could earn on a building site. He states that with the current funding, it is impossible to compete with those salaries. There is a perfect storm where many organizations need skilled and qualified staff, but there aren't enough young people coming through the right routes yet. The college could offer more courses if the government increased investment in teachers' wages. It is already doing a lot for local employers and is willing to do even more with the right support.The Pay Gap for FE Teachers
Mr. Cook adds that the government gave academic teachers a pay rise shortly after the general election. On average, a teacher in further education earns about £10,000 less than their equivalent in a school. The MP for Gillingham and Rainham, Naushabah Khan, has visited the college and pledged to raise the issue with the government. She believes that investing in vocational skills is crucial for the government's ambitious plans to build 1.5 million new homes and for huge infrastructure development. A Department for Education spokesperson states that they are driving forward their plan for change by investing in education and reforming skills provision. They offer a targeted retention incentive of up to £6,000 after tax annually for eligible early career construction teachers working in FE colleges. The Taking Teaching Further programme also supports those with relevant knowledge and/or industry experience to retrain as FE teachers, including those from construction.The CITB's Efforts
The CITB is working closely with the government to meet the demand. Most recently, in partnership with the government and the National House Building Council, they launched homebuilding skills hubs. These hubs deliver fast-track apprenticeships and high-quality training. Once fully rolled out, it is estimated that the hubs will deliver up to 5,000 new homebuilding apprenticeship starts and job opportunities each year. Up to 32 hubs will be launched by 2027. This shows the collective efforts to address the skills shortage in the construction industry.