Rochester, Minnesota is a one of a kind city to live, work, and invest in and we are not the only ones who would agree. Rochester currently receives the following rankings from various online sources:
#1 - Livability’s Top 100 Best Places to Live 2017 (Livability.com)
#2 - Best City to Buy a House in America. (Niche.com)
#5 - 2019 Top Cities to Live In (Livability.com)
#20 - Best Cities to Raise a Family in America (Niche.com)
Money Magazine also consistently places Rochester at the top of their lists for best cities to reside in.
Only an hour and a half from the Twin Cities of Minneapolis and St. Paul, Rochester boasts world class healthcare, miles of trails and parks, welcoming citizens, an award winning library, and its own international airport. Rochester, with a population of 114,000, is the third-largest city in Minnesota. More than anything, Rochester is best known for its largest employer - the Mayo Clinic.
Rochester citizens value education, growth, and community. We are civic-minded and passionate about improvement and progress. Rochester citizens, “vote, volunteer and get involved in their communities at a much higher rate than the national average” (livability.com). Our education system consistently outperforms the national average and 91% of students complete high school (areavibes.com). We take pride in our healthcare and education systems, and community as a whole, making Rochester an ideal city for investment and business growth.
Stability and Growth
Mayo Clinic in 2018-2019 was named best hospital in the nation by U.S. News & World Report (mayoclinic.org). Their healthcare is world renowned and with 33,400 employees, Mayo enables a very stable economy with continued promise of innovation and growth. Thanks to continued advancements from Mayo and the City of Rochester, we can expect enormous growth and improvement for years to come through the Destination Medical Center initiative.
“DMC” for short, “will be the catalyst to position Rochester, Minnesota as the world’s premier destination center for health and wellness; attracting people, investment, and jobs to America’s City for Health and supporting the economic growth of Minnesota and its biosciences sector.” (DMC.mn) DMC is one of Minnesota’s largest ever public-private partnership.
According to Mayo Clinic and the Destination Medical Center Initiative, the overarching goals of DMC are to:
“Secure Mayo Clinic, Rochester, and Minnesota's status as a global destination for health care, leverage Mayo Clinic's economic impact to increase jobs, tax base, and business and economic growth throughout the state of Minnesota, and create the optimal experience for patients, visitors and community residents.” (mayoclinic.org)
DMC.mn announced that the DMC initiative will impact and benefit the community and its economy in the following ways:
Jobs: Thousands of new jobs will be created in Minnesota from direct growth of Mayo Clinic and DMC, from indirect and induced impacts of visitation and spending, and from construction.
Tax Revenue: Significant new state and local revenue will be realized over a 20-year period.
Economic Development: DMC promotes Rochester and the State of Minnesota as a desirable location for start-up businesses, keeping them—and the jobs they bring—here.
Minnesota as a Global Center for Health and Wellness: DMC elevates Rochester and Minnesota as a global medical destination that provides patients a welcoming, comfortable, and engaging environment to receive the most advanced medical care in the world.
Within the initiative are plans for new hotels and apartments, (some of which are already being built), city transportation hubs, landscape and city beautification plans, additional downtown connecting skyways and additions to current downtown buildings. To provide for this expansion over the next 25 years Rochester is projected to need 24,000 additional housing units to house approximately 55,000 new residents. New industry and community growth is expected to create 50,000 additional jobs. University of Minnesota also has plans to expand its satellite campus to attract more students and young professionals to the community.
“The DMC initiative is expected to have an $9.8 billion economic impact with $1.5 billion in annual tax revenue- 4 percent of Minnesota’s GDP.” (mayoclinic.org)
According to multiple sources the current average home value is around $220,000, while the average sold home price is $218,000 (Zillow, Trulia, and Neighborhood Scout).
Single family homes are the most common housing type and accounts for roughly 60% of the city’s housing units. Roughly 26% of Rochester’s housing was built between 1940-1969, meaning a huge opportunity for renovation and value-add projects. According to Neighborhood Scout data, Rochester home appreciation rates have been above average for almost a decade.
Values have gone up 7% over the past year and experts predict it will only continue to rise, making it a great market to invest in. Up to 32% of Rochester residents are renters and the median market rent for a 2-3 bedroom ranges from $1100-$1400 a month (Neighborhoodscout.com).
In Rochester, all rental units are under the jurisdiction of the Office of Building and Safety, and both landlords and each individual rental unit need to have a license to operate. The Rochester landlord housing code requirements are complicated, and the inspection rigorous, making a rental certificate challenging to obtain and maintain. The city requires all landlords to attend a public safety training and acquire a rental property certificate for each property, which requires an initial inspection. Once a certificate is awarded, it must be renewed every two years. Our business model of quality and integrity enable us to excel when it comes to obtaining licenses. This ability gives us a competitive edge, in turn, adding a great deal of value to our business and its investors. While these barriers to entry have been an obstacle to overcome, we are now well-positioned to succeed in this market with our knowledge and relationships with city officials in multiple departments and a deep understanding of their requirements.
We are confident that Rochester is the ideal place for real estate investment and with the projected growth of DMC and multiple other community efforts there will always be a need for high quality rentals and exceptional landlord services, both within our expertise.