Demand for real estate on rise in North Loop

MINNEAPOLIS (KMSP) - The North Loop neighborhood in Minneapolis has some of the most expensive rent in the Twin Cities, yet there is still a demand for more, and construction in the neighborhood is nonstop.

"Just a few years ago, Downtown East, Downtown, even North Loop were an ocean of surface parking lots, and now we've got vibrancy, we've got action and now everyone wants to move here,” Minneapolis City Council member Jacob Frey says.

Diane Merrifield moved to the North Loop from the suburbs 11 years ago and has watched the neighborhood transform.

“When I moved in there was nothing here,” Merrifield says.

But as realtor Jay Ettinger points out, most of the residential construction is rentals and in Downtown East and North Loop it is some of the most expensive rent in the Twin Cities.

"The developers are trying to avoid those 10-year inspections,” Ettinger says. “With the apartments you only face a two-year period for inspections."

This means as more people look to live, work and play downtown, condos are becoming hot commodities, making those who got in early the lucky ones.

"I know what my value is from when I bought it two years ago to today and it's increased quite nicely,"
Ettinger says.

But with every crane that goes up, you have to wonder... is this bubble set to burst?

The North Loop Neighborhood Association says their only real concern about the booming residential population, is making a neighborhood that wasn't made for so much local traffic more pedestrian friendly.