VOL. 7 ISSUE 3, SEP. 2023
THE MINNESOTA HOUSING INDUSTRY NEWS SOURCE BY HOUSING FIRST MINNESOTA • HOUSINGINDUSTRYNEWS.ORG
Since the tour’s inception, hundreds of thousands of people have enjoyed the tour each year, flocking to the now-biannual event to gather inspiration and see the latest offerings from local builders.
Parade of Homes marks 75 years of home tours This year, the Parade of Homes celebrates its 75th anniversary. In 1948, members of the Minneapolis Builders Association came together with the idea to promote the latest and greatest in new home design with a home tour. The “Trend Home” was constructed in the Edina Highlands neighborhood and was opened to the public during National Home Week Sept. 5-11 that year. This collaborative effort between six builders aimed to showcase the quality and innovation in the home construction industry. Exceeding all expectations, this initial event drew in an eager crowd of visitors. According to the Star Tribune coverage of the event, lines of visitors wrapped around the home for their chance to walk through the home. From the spectacular reception to this single-home display, the Parade of Homes was born. “There was no stinting in the construction and furnishing of the house. It could have been built much more cheaply, but
instead it emphasizes the best possible quality of everything,” stated Harvey Ingham, a Minneapolis Tribune staff writer, in his coverage of the home. Two years later, on Sunday, September 10, 1950, a full-page ad in the Star Tribune announced a new scattered-site home tour, put on by the Minneapolis Builders Association, billed the “Parade of Homes.” For the 10 builders who participated in the 1950 home tour, they were greeted by families lined up outside the homes. From there, the Parade of Homes blossomed. In 1973, the then-Minneapolis Builders Association celebrated the home tour’s 25th year with pride that the tour had grown to 95 homes. The association noted in the Star Tribune that year, “as the Parade of Homes prepares to launch into its 25th year, the many individuals, some deceased, and many firms which provided such excellent support to the promotion can be proud of the growth and success of the Minneapolis Parade of
Homes and the Minneapolis Builders Association which makes it possible.” Noticing the success the Minneapolis Builders Association was experiencing across the river, the St. Paul Area Builders Association started its own Parade of Homes, and eventually joined forces with Minneapolis to launch a second yearly tour in the spring. “We found that doing the Parade of Homes at the same time made sense for promoting the event,” says Bob Hanson, who was an executive for the St. Paul Area Builders Association when it merged with the Minneapolis Builders Association in 1992, forming the Builders Association of the Twin Cities (BATC). The association continued to offer two Parade of Homes tours per year: one in the fall and one in the spring. Now, 75 years later, the Twin Cities home tour is presented by Housing First Minnesota and remains the largest and most successful in the country. CONTINUED >> PAGE 14
INSIDE THIS ISSUE
New laws take effect PAGE 4
Parade of Homes launches collaboration brew PAGE 14
Construction continues on apartment remodel for families in need PAGE 18
Builders adapt to evolving housing market The conversation regarding the housing market is largely centered around one factor: mortgage rates. The Federal Reserve started hiking rates last year in an attempt to tamp down on growing inflation. Since then, several increases in rates have led to mortgage rates jumping to over 7%. Consequently, the housing market has come to a standoff of sorts. Both buyers and sellers are hesitant to make a move in the face of these higher rates. Buyers are being confronted with elevated monthly payments, while many sellers are reluctant to list their homes and lock in a new mortgage at the current rates. According to data from the Minneapolis Area Realtors, inventory of homes in the Twin Cities metro area was down 16% in July from the same time last year. Meanwhile, closed sales were down 21% for the same period. CONTINUED >> PAGE 11 HOUSING INDUSTRY NEWS
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