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A daily look at the most significant and interesting stories affecting the Twin Cities.

Axios Twin Cities

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Get smarter, faster about what’s happening in your backyard with local reporters Nick Halter, Audrey Kennedy and Torey Van Oot.

Axios Twin Cities Thought Bubble

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A guide to fun things to do in Twin Cities this weekend.

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Data: Zillow; Note: Origins include the entire metro area; Chart: Axios Visuals

The Twin Cities is an attractive spot for Illinois city-dwellers and others trying to escape high home prices.

Why it matters: Affordability is drawing people to the Twin Cities, where a dollar stretches further than metros like L.A. and Boston.

The big picture: The transplants moving here include remote workers and first-timers leaving pricier states like Colorado and California, local realtors tell Axios.

What they're saying: "Even if they're 25, they're able to buy something much more significant here," says realtor Alec Roth, who's helped a half dozen out-of-state buyers purchase homes in the area in the last month.

Among them, 20-somethings from California who bought a $650,000 home in Apple Valley: "That mortgage payment was the same as their rent for a one-bedroom apartment," Roth says..

Zoom in: Relatively lower prices aren't the only draw here. Some LGBTQ people are considering moving to Minnesota — which has doubled down to ensure access to gender-affirming care — as GOP lawmakers in other states restrict transgender rights.

Andi Otto, executive director of Twin Cities Pride, told WCCO-TV last month he gets 10 to 20 calls a day from LGBTQ families interested in moving to the state.

Reality check: Elevated mortgage rates are keeping many people in place. "We're seeing a big pullback in migration right now," Redfin deputy chief economist Taylor Marr tells Axios.

Across the U.S., the number of Redfin users searching for homes within their metro is down 18% from a year ago, per a June report.

Meanwhile, the number of users surfing listings in a new area dropped by 7%.

By the numbers: More than 76% of page views for Twin Cities-area Zillow listings came from locals, according to first-quarter Zillow data shared with Axios.

Outside the metro, Chicago was the top origin, followed by St. Louis, Denver, Phoenix, St. Cloud and Los Angeles.

We heard from several readers who recently moved to the Twin Cities, drawn to the area's abundant recreation scene or to be closer to family.

Josh B., a transplant from Phoenix, moved to Southwest Minneapolis last November after purchasing a house, sight-unseen.

He and his fiance "fell in love with all the outdoor activities, the atmosphere and the people," while visiting relatives that fall.

The intrigue: Several transplants wrote to us about how hard making friends is in the Twin Cities.

💭 Our thought bubble: They aren't wrong. As our 2021 reader survey found, Minnesotans are not always the most welcoming to outsiders.

Pro tip, from Jessica H., who moved to Uptown from Atlanta during the pandemic: "Sign up for a recreational sports league, get involved in organizations at work (or outside of work), attend events, go on walks around the lake and, ultimately, approach others and just say something like, 'I just moved to the cities; would you like to be friends?'"

Chicago residents are eyeing Twin Cities' homes

Newcomers keep moving here, even as some say Minnesotans aren't always the most welcoming.

Real estate

The Twin Cities is an attractive spot for Illinois city-dwellers and others trying to escape high home prices.Why it matters: Affordability is drawing people to the Twin Cities, where a dollar stretches further than metros like L.A. and Boston.

Real Estate

Axios Twin Cities, anchored by Torey Van Oot, Nick Halter and Audrey Kennedy, is here to help readers get smarter, faster on the most consequential news and developments unfolding in their own backyard

Expect to see more pops of pink as Barbie powers the summer of nostalgia.

Why it matters: Reliving highlights from the past helps us find comfort and joy in the present, says Laurie Pressman, vice president of the Pantone Color Institute.

Post-pandemic, there's a "pent-up desire to just have some fun," she tells Axios. And incorporating Barbie's bold, signature shade at home — from countertops to wine glasses — is one way people are leaning into optimism.

The big picture: U.S. search interest in "Barbie pink" in the home and garden category more than quadrupled in June 2023 and is currently at a 10-year high, Google Trends tells Axios.

"Pink" and "Barbie pink" were among the top 10 trending paint colors in June.

Also, Pinterest saw global searches for "Barbiecore aesthetic room" jump 1,135% from May 2022 to May 2023.

Yes, but: Don't expect a deluge of Barbie Dreamhouses to pop up across the Twin Cities.

Interest in the doll's shade of pink wasn't as strong in Minnesota as it was in other states, the Google Trends data shows.

What they're saying: "Millennial pink reigned on Instagram for years, and the natural evolution of that is Barbiecore," Twin Cities-based designer Katie Saro tells Axios.

"It’s also a response to the neutral-only interiors that over-saturated the market and social media for so long," says Saro, who hosts "The Art of Vintage" on Magnolia Network.

Zoom in: Local designer Victoria Sass says she hasn't gotten any Barbiecore design requests yet but has designed other nostalgic projects, including a cozy Lowry Hill townhome inspired by Nora Ephron movies.

"It's fun to use trends as a jumping off point for an interior concept: Just make sure you make it personal enough" to stand the test of time, she says.

Pro tip: To add a bit of nostalgic comfort to your place, Saro suggests looking for inspiration from old family photos and vintage design books and magazines, which you can find in antique shops and on eBay.

The latest: Gig marketplace TaskRabbit tells Axios that ahead of the Barbie movie release, clients are incorporating Barbie-inspired decor into their homes more than ever before.

Reality check: We spotted at least a couple Barbie-chic homes around the area in the last year, including this Robbinsdale rambler with a pastel pink oven.

So, we asked AI to show us what a Barbie Dreamhouse might look like in Minneapolis and St. Paul. (It didn't disappoint.)

Minneapolis Barbie Dreamhouse. Image: Created with the generative AI tool, Dream by Wombo

Minneapolis Barbie Dreamhouse. Image: Created with the generative AI tool Dream by Wombo

St. Paul Barbie Dreamhouse. Image: Created with the generative AI tool, Dream by Wombo

St. Paul Barbie Dreamhouse. Image: Created with the generative AI tool Dream by Wombo

What the Barbiecore home trend means for Twin Cities

“Millennial pink reigned on Instagram for years, and the natural evolution of that is Barbiecore," Twin Cities-based designer Katie Sarokhanian tells Axios.

Animated illustration of a drab couch, over which some sparkles pass, leaving a nicer, pink couch.

Expect to see more pops of pink as Barbie powers the <a class="gtmContentClick" data-vars-link-text="summer of nostalgia" data-vars-click-url="https://www.axios.com/2023/06/12/mcdonalds-grimace-meal-nostalgia-summer-movies" data-vars-content-id="603a329f-9e09-4186-8c1e-43ec9c9d73fa" data-vars-headline="What the Barbiecore home trend means for Twin Cities" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/06/12/mcdonalds-grimace-meal-nostalgia-summer-movies" target="_self">summer of nostalgia</a>.Why it matters: Reliving highlights from the past helps us find comfort and joy in the present, says Laurie Pressman, vice president of the Pantone Color Institute.

Nearly all Minnesota mortgage holders have a rate below 6%, locking homeowners in place and leaving buyers with fewer homes to choose from, per Redfin data shared with Axios.

Why it matters: Homeowners are experiencing the "golden handcuffs" phenomenon: They have a great rate now and would face a higher monthly payment if they move, Redfin chief economist Daryl Fairweather tells Axios.

With fewer homeowners wanting to give up their interest rate, the number of homes sold in the Twin Cities in May was down 28% compared to a year prior, according to Minneapolis Area Realtors data.

The big picture: It's not just a local issue. Nine in 10 U.S. homeowners with mortgages secured rates below 6% as of late 2022, per the new Redfin report. Meanwhile, mortgage rates have swung between 6% and 7% nationally in recent months.

What they're saying: St. Paul homeowner Nathaniel Hood says that after securing a 2.9% rate in May 2021, he's staying put in Highland Park for a while.

"If we purchased today, the same monthly mortgage payment would be for a significantly smaller and less nice home," Hood tells Axios.

Yes, but: People are still buying, with metro-area homes selling faster now than in the May 2020 pandemic buying frenzy, per Minneapolis Area Realtors' latest data.

Lifestyle changes — such as a new job or growing or shrinking households — are still happening, says Brianne Lawrence, president of the Saint Paul Area Association of Realtors.

Data: Redfin; Chart: Alice Feng/Axios Visuals

By the numbers: More than a quarter of Minnesota homeowners with mortgages had a rate below 3% in the fourth quarter of 2022, per Redfin.

About 42% of mortgage holders — the biggest share — had a rate between 3% and 4%.

Reality check: Lower rates could loosen up some supply, but not enough to meet demand, Fairweather tells Axios.

New construction isn't keeping up, either. Fairweather predicts it'll take the U.S. a decade to repair its housing shortage.

Golden handcuffs lock up Minnesota's housing supply

Here's a big reason why many homeowners aren't selling.

Illustration of a handcuff on a keychain in a lock

Nearly all Minnesota mortgage holders have a rate below 6%, locking homeowners in place and leaving buyers with fewer homes to choose from, per Redfin data shared with Axios.Why it matters: Homeowners are experiencing the &quot;golden handcuffs&quot; phenomenon: They have a great rate now and would face a higher monthly payment if they move, Redfin chief economist Daryl Fairweather tells Axios.

Crisp white shiplap, black window casings and exposed wood beams have taken over home design in the Twin Cities metro area.

Why it matters: Modern farmhouses have dethroned McMansions as the suburban dream home.

Minneapolis-based Martha O'Hara Interiors has worked on "more [modern farmhouse projects] than we can count," the firm's CEO Kate O'Hara tells Axios.

Driving the news: The breezy, neutral style was popularized 10 years ago when Chip and Joanna Gaines launched HGTV's "Fixer Upper."

Zoom in: City dwellers seeking more land in the suburbs or rural areas are especially drawn to the look, says Danielle Yegge, who owns Style & Structure, which has custom-built the trendy homes in and around Stillwater, Lake Elmo and Woodbury.

"They don't want to give up that modern flair, but they love aspects of the farmhouse lifestyle," Yegge tells Axios.

A photo showing the exterior of a modern farmhouse home with vertical lines, all white with black finishes

The big picture: Retailers and home builders jumped on the bandwagon to give consumers what they want.

Target's home goods section is stocked with farmhouse-inspired Magnolia and Studio McGee collections.

The style dominates new-build communities around the country.

Of note: Some design experts predict the trend is here to stay.

The ease of replicating the look "has played a significant role in the phenomenon of the modern farmhouse," says Veronica Valencia, host of HGTV's "Revealed."

"As a homeowner, when you look at a simple modern farmhouse room, you immediately feel like, 'Oh! I can tackle that!' There are no bells and whistles to it. … It's simple and familiar," Valencia says.

A photo showing the interior of a home with a fireplace flanked with shelving full of cut wood, metal dining chairs near an island and two plants as accents

If you want to incorporate the style at home, here are Valencia's top tips:

🪑 Accessorize with antiques and modern lighting.

🖼 Frame large, contemporary prints with natural wood.

🔨 Install shiplap vertically instead of horizontally and then paint with your favorite color.

What's next: People are leaning into organic modern homes, O'Hara says. It's similar to a modern farmhouse but with fewer barn doors, farmhouse sinks or shiplap walls, she says.

Between the lines: The average consumer isn't ready to quit the approachable style.

What they're saying: "Pinners are also putting their own spin on the trend to make spaces feel like their own," says Swasti Sarna, global director of data insights at Pinterest.

Modern farmhouse design dominates the Twin Cities

Modern farmhouses have dethroned McMansions as the suburban dream home.

A photo showing a family room with a couch, wooden ceiling and vertical, shiplap-like walls with black window casings

Crisp white shiplap, black window casings and exposed wood beams have taken over home design in the <a class="gtmContentClick" data-vars-link-text="Twin Cities" data-vars-click-url="https://www.axios.com/local/twin-cities/2023/06/10/minneapolis-st-paul-suburbs-home-prices-rise" data-vars-content-id="b505f196-6fa7-470c-a99c-bd0e5812b002" data-vars-headline="Modern farmhouse design dominates the Twin Cities" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/twin-cities/2023/06/10/minneapolis-st-paul-suburbs-home-prices-rise" target="_self">Twin Cities</a> metro area.Why it matters: Modern farmhouses have <a class="gtmContentClick" data-vars-link-text="dethroned McMansions" data-vars-click-url="https://www.nytimes.com/2023/07/07/realestate/modern-farmhouse-suburbs.html" data-vars-content-id="b505f196-6fa7-470c-a99c-bd0e5812b002" data-vars-headline="Modern farmhouse design dominates the Twin Cities" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.nytimes.com/2023/07/07/realestate/modern-farmhouse-suburbs.html" target="_blank">dethroned McMansions</a> as the suburban dream home.

It's getting harder to buy your first home in the Twin Cities.

By the numbers: The share of homes sold to first-time buyers in the U.S. has shrunk to a record low  — dropping from 34% to 26% from 2021 to 2022 — as inventory and affordability issues persist, according to the National Association of Realtors.

First-timers are also waiting longer to buy; the median first-time buyer age jumped from 33 to 36 during that time, the latest data shows.

What's happening: The Twin Cities' cash-rich market is squeezing out many first-time buyers who don't have access to that kind of money, managing broker Jamar Hardy with Edina Realty tells Axios.

"Even if they do everything asked of them to be ready, there's less and less affordable opportunities for them to get in," says Hardy, president-elect of Minneapolis Area Realtors.

Between the lines: In April, close to 29% of Twin Cities home sales were made in cash, as the portion of U.S. cash buyers reached a nine-year high, new Redfin data shows.

State of play: Getting access to creative financing options or supportive funds — Minnesota Housing offers a variety of loan programs — is the best opportunity for a first-time buyer to win in this market, Hardy says.

He sees first-timers who don't have a lot of cash lean into 3% or 3.5% down payment mortgage products.

What they're saying: Saving enough for a down payment is the biggest barrier to entry, says Brandi Snowden, a director at the National Association of Realtors.

Many would-be-buyers are saddled with debt, including student loans, car loans and credit card debt.

Data: Zillow Economic Research; Map: Tory Lysik/Axios Visuals

Be smart: You don't need to put 20% down to win. Homebuyers aren't putting as much money down as they were at the height of the housing frenzy, Axios' Emily Peck reports.

The median down payment in the metro area was 10% in April, per Redfin.

"If you can come in at 5% or 10% down, it's competitive enough," Hardy says.

The big picture: Funds aside, preparation is the biggest advantage. Many people are working with lenders to guarantee the transaction will close without hiccups, Hardy says.

"That's making sellers feel comfortable to say, 'OK, I'll work with this first-time home buyer offer, even if they're bringing in a little bit less down payment and asking for an inspection.'"

The bottom line: Even as housing costs rise in the Twin Cities, this is still a more affordable big metro than most.

It'll take Minnesotans 7.4 years on average to save for a 10% down payment on the typical home, Zillow data shows.

First-time homebuyers in Twin Cities are older, have fewer options

In April, close to 29% of Twin Cities home sales were made in cash, new Redfin data shows.

Illustration of a book, shaped like a house, with many page markers sticking out. 

It&#x27;s getting harder to buy your first home in the Twin Cities.By the numbers: The share of homes sold to <a class="gtmContentClick" data-vars-link-text="first-time buyers" data-vars-click-url="https://www.nar.realtor/newsroom/nar-finds-share-of-first-time-home-buyers-smaller-older-than-ever-before" data-vars-content-id="d457a4e6-eca0-4c93-af0c-ad36621a92c7" data-vars-headline="First-time homebuyers in Twin Cities are older, have fewer options" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.nar.realtor/newsroom/nar-finds-share-of-first-time-home-buyers-smaller-older-than-ever-before" target="_blank">first-time buyers</a> in the U.S. has shrunk to a record low — dropping from 34% to 26% from 2021 to 2022 — as inventory and affordability issues persist, according to the National Association of Realtors.<ul><li>First-timers are also waiting longer to buy; the median first-time buyer age jumped from 33 to 36 during that time, the latest data shows.</li></ul>

Brianna Crane

Featured stories

Modern farmhouse design dominates the Twin Cities

Chicago residents are eyeing Twin Cities' homes

What the Barbiecore home trend means for Twin Cities

Golden handcuffs lock up Minnesota's housing supply

First-time homebuyers in Twin Cities are older, have fewer options