In the June 2006 issue of Kiplinger’s Personal Finance magazine the feature story provided the “50 Smart Places to Live” in the United States. Voted on by readers, cities nationwide were evaluated on predetermined criteria that consisted of:

• Strength of the local economy
• Quality of health services available
• Affordable living – based on being able to purchase an attractive home for under $300,000-$400,000
• Overall quality of life

While Nashville, TN was voted as the number one pick, Minnesotans can boast yet another item on their list of top ratings (see below). Kiplinger’s enthusiastic summary of Minnesota provides a glimpse of what all the fuss is about: “The Twin Cities offer a hip and progressive atmosphere with a Midwestern sensibility, multiple cultural outlets, pro teams in all four major sports, a dozen universities and colleges, and a diverse economy.”

As a born and raised Minnesotan, I naturally take pride in the fact that we are top-rated on this list amongst others. However, beyond the pride that is to be expected in one’s home and roots, I haven’t always been terribly enthused about choosing Minnesota as a place to live. As my ambitions pushed me to go elsewhere, I partook in an exploration of other areas to live namely New England. It wasn’t until the “do or die” moment of decision to stay or go that I truly discovered Minnesota’s appeal which ultimately compelled me to stay – and I am thankful that I did!

Alluding back to the article, the author highlighted several fantastic features of the Twin Cities, some of which resonate inside of me as a result of my own personal evaluation:

Despite the fact that when one imagines majestic skylines they likely don’t consider those of Minneapolis and St. Paul, those who have seen both just might say otherwise. Words cannot describe the exquisiteness of driving into Minneapolis at night and taking in the unique illuminated buildings that encompass the downtown area. “Classy” “bold” or “striking” are words that might come to mind. St. Paul on the other hand, might not trigger quite the same words but shares an equal amount of uniqueness. With its old buildings dimly lit along with the Cathedral of St. Paul perched on a hill overlooking the glory of the capital city, there is something about St. Paul that is aesthetically pleasing to the eyes despite a lack of contemporary and chic design.

Perhaps because they are flooded with colleges and universities, the Twin Cities embraces its diversity and offers several facets for cultural exposure. The metropolitan area boasts one of the largest theater districts in the country. On the flip side of the cultural coin, Minnesota also boasts four pro teams: the Vikings (football), Timberwolves (basketball), Wild (hockey) and the Twins (baseball).

Looking for a job? The Twin Cities has one of the lowest unemployment rates in the nation and is the home base for many world-renowned companies such as 3M, Medtronic, General Mills, Ecolab, Ameriprise, Target, Best Buy, Northwest Airlines, St. Paul Travelers and Hormel. Whether you are looking for a career as a waitress or as a top-level CEO, Minnesota offers the opportunities for both and everything in between.

Finally, as a Realtor, I cannot overlook the importance of the real estate market that the article also points out. As other postings have discussed, just like the rest of the country, Minnesota has experienced a hot market over the past five years. However even with the intense growth observed in housing prices, soon-to-be Minnesotans searching for affordable living will be pleasantly surprised. At the end of 2005, the median price for a single-family residential home was just $224,500 with a comfortable appreciation rate of nearly 7% per year.

In summary, it appears that an objective point of view might view the Twin Cities as a fantastic place to live. With outstanding schools, rich diversity, a multitude of job opportunities and a median household income of $55,000 (nearly 25% above the notation median of $58,000) most would concur with Kiplinger’s assertion that Minneapolis-St. Paul is indeed the second “smartest” place to live in America.

Other top-ratings that Minnesota has recently received:

• Best drivers
• Most Livable State – Minnesota has been ranked one of the most livable states nationwide in the last nine years, ranking first between 1997 and 2003 and second in 2004 and 2005, according to Morgan Quitno Press
• Healthiest State – Minnesota ranked as one of the five healthiest states in the country over the last 10 years (1996-2005), according to Morgan Quitno Press, based on a variety of economic, social and health-related factors.
• Most Politically Active – Minnesotans are politically active. According to the U.S. Bureau of the Census, 79.2 percent of Minnesotans voted in November 2004, giving Minnesota the top spot over runner-up Wisconsin.
• Well-being of its Children – In 2005, Minnesota ranked No. 3 among states in the well-being of its children, according to the annual Kids Count report.
• Best Places to Jump-Start a Business or Career – Minneapolis/St. Paul ranked 18th on Forbes magazine’s 2005 list
• Smartest State – Named 6th smartest state by Morgan Quitno Press (2005-2006)

Want even more Minnesota rave reviews? Visit http://www.minneapolis.org/travelinfo/facts_trivia.asp

• affordability of attractive housing
• access to quality health care
• strength of the local economy
• range of leisure activities

If Kiplinger’s would not have factored in weather, I wonder if Minneapolis would have ranked #1. Kiplinger’s noted the Twin Cities’ “hip and progressive” atmosphere, diverse economy, the four major sports teams, and variety of cultural outlets, like live theatre.

The study by the Corporation for Enterprise Development, a nonprofit organizations, further reinforces Minnesota reputation as state with strong support for workers and families, as well as employers. Even more promising is Minnesota’s focus on education and R&D to develop the infrastructure necessary to sustain the economy into the 21st century.

Read the full report here.

Affordability

Although the home prices have risen rapidly over the past few years, housing remains affordable. Based on data collected in this report, a typical family in Minnesota earns enough to pay approximately 124.5% of the cost of a median-priced house ($225,260, according to the report). Housing is even more affordable in the Twin Cities area, where the prices are higher, but the wages more than make up for it, and a typical family can pay for 131% of the cost of a median-priced home.

Interest Rates

Its interesting to see how the interest rates continue to stay low, even with the Fed raising interest rates to prevent inflation. Take a look at those two graphs, and see how far we’ve gone (down) since the bad old days of the late 80′s!

Financing

Not much going on here, but the chart in this section is interesting, as it seems to show a little uptick in the “percent of listing price received”. See for yourself, I would have thought that this would go down in a “buyer’s market”, but you of course need to factor in how long the average house is on the market, and other statistics…

Unemployment

Its good to see slow, steady job growth, which would seem to indicate that the state of Minnesota has stabilized at a high employment rate. From what I’ve read, the major factor in rapidly decreasing home values (a housing “bubble” bursting) is a major increase in unemployment.

Average sale price

Put simply, the average sales price of a residential home rose by 8.9% from the 1^st to the 3^rd Quarter of 2005. Not factoring in the 4^th quarter of 2005, we are below the appreciation (average sales price increase) rate of 2002 (10% increase), but above 2003 appreciation rate (6%).

Marketing time

The metro’s average time on market remains at less than two months, and actually decreased from the first quarter of 2005. Its not as low as its been in recent years, but with an average marketing time of 51 days, it is still historically low.

General Mills ranks 98^th in Fortune’s Best Places to Work, with a subsidized child care center, and the ability to do your laundry on site. The Mayo Clinic located in Rochester, about an hour south of the Twin Cities, ranks 89^th.

General Mills also placed 19^th in Computerworld’s 2004 best places to work in IT, while Minnesota Life Insurance Co. ranked 8^th and West Publishing ranked 47^th.

The Twin Cities area hosts a number of Fortune 500 corporate headquarters, including, 3M, Best Buy, C.H. Robinson Worldwide, Cenex Harvest States, Ecolab, General Mills, Hormel Foods, Land O’Lakes, Medtronic, Nash Finch, Northwest Airlines, PepsiAmericas, The St. Paul Companies, SuperValu, Target, UnitedHealth Group, U.S. Bancorp, and Xcel Energy.

Deloitte and Touche’s “Technology Fast 500″ list in 2005 has 10 companies from Minnesota. Not surprisingly, three of these companies are medical equipment companies (Enpath Medical, Vascular Solutions, and Possis Medical).

In conclusion, the Twin Cities is a great place to work, with a solid base of IT technology and medical companies.