Should You Rent Your House or Sell It?

 
 

If you’re a homeowner ready to make a move, you may be thinking about using your current house as a short-term rental property instead of selling it.

A short-term rental (STR) is typically offered as an alternative to a hotel, and they’re an investment that’s gained popularity in recent years. According to a Harris Poll survey, 28% of homeowners have considered using a rental service to temporarily rent out their home for additional income.

Owning a short-term rental can be a tempting idea, but you may find the reality of being responsible for one difficult to take on. Here are some of the challenges you could face if you rent out your house instead of selling it.

A Short-Term Rental Comes with Responsibilities

Successfully owning and renting a house takes work. Think through your ability to make that commitment, especially if you plan to use a platform that advertises your rental listing. Most of them have specific requirements hosts have to meet, and it takes a lot of work. A recent article from Bankrate explains:

Managing a rental property can be time-consuming and challenging. Are you handy and able to make some repairs yourself? If not, do you have a network of affordable contractors you can reach out to in a pinch? Consider whether you want to take on the added responsibility of being a landlord, which means screening tenants and fielding issues, among other responsibilities, or paying for a third party to take care of things instead.”

Not only is there the upfront time and cost of owning a short-term rental, but there are also risks that could come up for you down the road. Investopedia warns:

“Risks of hosting include renting your place to rude guests, theft or damaged property, complaints from neighbors, and potential regulatory violations depending on your location.”

There’s a lot to consider before taking the leap and converting your house into a short-term rental. If you aren’t ready for the work it takes, it could be wiser to sell instead.

Your House May Not Be Ideal for Your Rental Goals

Not every house ends up being a profitable short-term rental either. One of the biggest factors is where your home is located. The less likely your neighborhood is to be a travel destination, the fewer requests you should expect from potential renters—and that impacts your bottom line. An article from the National Association of Realtors (NAR) advises:

“When it comes to the viability of profitable STRs . . . consider factors like location, amenities, and whether the property is appealing. Most people seek STRs in locations where they vacation, so proximity to attractions is important. Likewise, the property should cater to a variety of travelers.”

It’s smart to do your homework and learn how much rentals in your area go for, how much business they get throughout the year, and how this compares to your goals.

Bottom Line

Converting your home into a short-term rental isn’t a decision you should make without doing your research. To decide if selling your house is a better alternative, talk with a local real estate advisor today.

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The housing market wakes from the dead

 
 

The housing market is showing signs of life after veering into a dead zone late last year.

Why it matters: These green shoots are a good sign for the economy overall, and run counter to some of the dire predictions made last fall when mortgage rates were skyrocketing.

What's happening: Home buyers are making peace with higher mortgage rates, and sellers are making peace with the need to cut prices and make concessions.

  • While home prices will likely keep falling, there's reason to think a recovery in sale activity is already underway.

By the numbers: Pending home sales were up 3% in December, according to Redfin's proprietary measure. That was the first monthly increase since October 2021. (They're still down 31% since last year.)

  • In a report titled, "The Housing Market Has Started to Recover" Redfin also notes that more folks are taking home tours than during the fall.

  • The market's at a turning point, Taylor Marr, Redfin's deputy chief economist told Axios.

Zoom out: The shift is all about mortgage rates. They went up so fast, and to such a high level, it was hard for buyers to even keep up. When rates started falling back a bit, some of these prospective buyers perked up.

  • After peaking at over 7% in November and crushing demand for homes, rates then fell at the fastest pace since 2009, as the market started to feel the Fed was slowing down its rate hikes.

  • The average rate on the 30-year mortgage is now 6.13%, per Freddie Mac data out Thursday. That's the lowest level since mid-September.

  • Some buyers are even able to get rates that start with a 5 — "an important psychological threshold," Redfin notes.

Between the lines: Home buyers and sellers adjusted their expectations. What once seemed high now seems like sort of a deal.

What they're saying: When Stefanie McFall, an architect in Atlanta, started looking for homes with her husband and kids in the suburbs last March, they were outbid repeatedly — many houses sold for $250,000 over asking. By early fall, they stopped looking.

  • This year, with mortgage rates turning down, they waded back in. Success! They're closing on a five-bedroom house next month with a 5.5% mortgage — the sellers even covered some closing costs. "That would not have happened last spring," she said.

  • "We didn’t mind paying a little higher interest rate because it felt like we had a little more buying power," McFall said in a message. The house is likely $100,000 less than it would've been last year, she added.

Keep reading on Axios.

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The 10 Biggest Kids Room Trends to Know for 2023, According to Designers

 
 

To start out the year, we’re zeroing in on the trends that will dominate kids’ rooms in 2023.

We called on our favorite designers, almost all who happen to be parents themselves to ask: What kid room trends are you seeing on the rise, and why? Their answers range from a clever paint trick to an overarching trend towards safer materials. Read on to find out what these design pros are seeing in their crystal balls:

No More Neutrals

Annie Obermann, Principal Designer at Forge & Bow says she predicts pattern, pattern—and more pattern. “People have been playing it safe with neutrals for more than a decade. I think people are becoming more comfortable with bold expression, infusing multiple patterns and bold colors to create an eclectic space,” she says.

Caroline Brackett of Caroline Brackett Studio of Design agrees, “In recent years, there have been a lot of neutral kids rooms and nurseries, but that is becoming a thing of the past as bolder rooms take center stage,” she says. “We are seeing a lot of unexpected color combinations that are coming through patterned wallpaper, paint colors, and fabrics.”

Creative Room Dividers

“I predict that we’ll see more creative room divisions in the year ahead,”  says Roberto Gil, the owner of Casa Kids, a custom furniture maker based in Brooklyn. “We are getting more requests for room partitions because building managers and boards in New York City won’t allow contractors to create room partitions. Instead we make room dividers as removable cabinetry.” And the need to partition rooms is not limited to city dwellers: With many families choosing to stay put while housing prices and mortgage rates remain high, creative room divisions are likely to become more popular. 

Multi-Function Designs

“I feel like kids’ rooms are getting a lot more multifunctional,” says Ginger Curtis, founder of Urbanology Designs. “It’s not just a bedroom anymore… it has zones: Sleeping zones, work zones, organizational zones.” She points out that you also don’t need a large bedroom to get all this functionality. “There are a lot of creative ways to work with small spaces.”

Next-Level Kid Art

“Lately, we’ve gotten more and more requests from clients to incorporate their kids’ art into their bedroom in new and interesting ways,” says Julia Miller, founder of Yond Interiors, who sees parents wanting to personalize the spaces and encourage their kids’ creativity. “In 2023, we’ll see people incorporating kids’ artwork in interesting ways beyond the classic corkboard, like collages or custom screen-printed textiles.” 

Hanging Chairs

Hanging chairs are huge in tween rooms right now, according to mom of two Bethany Adams, the founder of Bethany Adams Interiors. “Hanging chairs look super-cool and will impress their friends, which is sometimes the point of tween rooms,” she laughs. But Adams also loves installing a classic swing into a younger kid’s room, if there’s the space to do so safely. “Just be sure to have a qualified handyman or contractor install the hardware into the ceiling joists above and be clear about proper swinging form!” she adds.

Bunk Beds Are Back

Rozit Arditi, Principal at Arditi Design, predicts design firms will be installing more bunk beds in 2023. “Bunk beds are often seen as a small space solution, which is true, but they can be used for kids’ rooms big or small to maximize the floor space and create additional sleeping areas for sleepovers.” (Pssst … if you are thinking about a bunk, Cubby’s got you covered with this guide to bunk beds. We’ve got great bunk accessory ideas, too.)

Low VOC Is Key

Kristin Bartone, founder of Bartone Interiors sees sustainable, “clean” furnishings as an important and rising trend in kids rooms. “Environmental toxins have a disproportionately high effect on children,” Bartone points out. “Organic, natural materials like sustainably-sourced cotton and the natural fibers are key in keeping your kids’ space toxin-free from the start.”

Colorful Millwork and Trim

Leigh Anne Schurr, special projects manager at Marguerite Rodgers Interior Design, points to a very specific trend: colorful millwork and trim. “A kid’s room is an area of your home where you can experiment with color and playful patterns,” says Rodgers. “Our clients are forgoing the traditional white trim and millwork and using a contrasting color instead.” Alison from @houseabovetheriver painted the millwork in her kid’s room, as shown above.

Non-Binary Design 

Wallpaper has been trending in kids rooms for years, but Michael Cox, principal at foley&cox, sees a shift towards “modern, sophisticated, and abstract wallcoverings.” He notes, “Broader color options are available to address gender neutral and non-binary considerations. Plus, the abstract patterns allow the foundation of the room to evolve as the child grows—simple updates of art and accessories can now take a room from newborn to preteen.”

Cozy Spaces

“We are seeing a need for a smaller, safe spaces,” says Samantha Struck of StruckSured Interiors. Struck believes that kids had a rough time coping with COVID and that their space can help them “truly rest, process, and hide from the world.” Think elements like hammocks, bunk beds that can be closed with curtains, and bed canopies to enclose their sleeping space. “Any chance to re-enforce security within the space will be huge for helping kiddos feel at peace and a sense of calm.” Cozy bed nooks fit in here, too!

Get more on Apartment Therapy.

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Population drain persists in big cities

 
 

People aren't moving to big city centers like they used to, even as employers ramp up calls to return to the office.

 
 

Why it matters: Affordability is still drawing folks to less dense and cheaper areas, particularly those in the booming Sun Belt.

Driving the news: A new report from the National Association of Realtors showed that major metro areas like New York, San Francisco, and Chicago saw more people leaving than moving in.

  • Instead, people fled to cities in Florida, Texas, North Carolina and South Carolina.

  • The Miami metro area experienced the largest inbound increase from before the pandemic, which saw gains of nearly 60% in 2022 compared to 2019. Houston experienced the highest move-in rate for 2022.

What they're saying: "Pre-pandemic, we had a different trend. People wanted to move to big city centers," Nadia Evangelou, senior economist and director of real estate research at the National Association of Realtors, tells Axios.

  • More people are moving to those cities compared to 2021 but "we're not there yet," Evangelou says of metro areas regaining the population that fled.

Between the lines: Across the board, the report found, fewer people moved last year, continuing a trend from 2021.

  • The report analyzed the United States Postal Service’s change-of-address data to spot migration trends.

  • Nearly 70% of U.S. ZIP codes posted fewer inbound moves in 2022 compared to 2021, according to the data.

  • The slowdown has persisted as droves of people sought more space and cheaper cost of living during the pandemic.

Keep reading.

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How to Find Escape During Winter in Minnesota

 
 

Minnesotans don’t let a little snow and subzero temps trap us in our homes.

Not only are we a hardy bunch; we creatively embrace whatever Mother Nature throws our way. Should you need a few ideas for how to tick off the days until spring once again thaws the North, we’ve curated a list of some hidden (and not-so-hidden) escapes, excursions, and diversions bucketed by Earth, Water, Air, and Fire—seen by early humans as the four elements that created the universe, and for our purposes, beacons to help navigate a winter filled with fun, style, and substance.

Earth

The ground is frozen and the trees are barren, Yet there are still ways to connect with the earth until the thaw.

Get Grounded

Ready for a refresh? Here’s a foolproof renewal plan. Step one: Bundle up, as usual. Step two: Get to the white-paned glass palace filled with a thriving jungle. You know the one—our historic landmark and great treasure, the Marjorie McNeely Conservatory. Step three: Open the door. Step four: Unzip your parka, and unwind your scarf like a mummy freeing itself. Step five: Feel instant joy! It’s the smell that makes your heart happy. Warm, wet air full of green growing, the smell of chlorophyll, the smell of earth. It hits you on a cellular level: This is warmth; this is life! Step six: Walk the paths, find the special blooming orchids, admire the beauty of leaves and bark, go around the Sunken Garden (as many times as you want), and marvel. Step seven: Take the interior hallways over to the Como Zoo’s Tropical Encounters—a rainforest animal and plant exhibit that combines the great smells of warm, living life with the sounds of birds and the sights of darting fish and bright frogs. And finally, step 8: Head back out to the frozen world. Your very being will be newly alert, alive, and restored. 1225 Estabrook Dr., St. Paul

Tour the Terrain

There’s nothing like the sound of horse hooves hitting the pavement, especially when you’re snuggled in an open carriage on Hitching Company’s Minneapolis riverfront tour. Book a dinner at a neighboring North Loop or Northeast eatery to warm up with red wine or a smoky drink. thehitchingcompany.com

Earthly Delights

Having one of those days when you could really use a change of perspective from your WFH space? Hustle off to Hotel Emery (pictured), and hunker down at Spyhouse Coffee in the lush lobby. And if you really need a break from the mundane, make 24 hours of it with a handmade pasta dinner at the Chef Steven Brown–driven Giulia, an overnight in one of the rooms above (hello, 12-foot ceilings), and a comfy seat at the neighboring Guthrie Theater while you enjoy The Little Prince—the story of a prince’s intergalactic travels to various planets, including Earth. 215 S. 4th St., Mpls.

Camp Indoors

Need an easy getaway with the kids? Westin Edina Galleria offers an indoor camping package complete with a tent, age-appropriate toys, and a customized sleeping bag. Bring your own twinkle lights and your favorite pillows, dim the overheads, order room service, dial up a Netflix movie, and then hunker down. edinaweekendwonders.com

Dig in the Dirt

Feeling the need to wrap your fingers around a piece of earth? Dame Errant clay studio just might be your indoor winter wonderland. Owner/artist Tara Block’s studio is tucked in a historic warehouse space and offers a great variety of workshops, but we are especially intrigued by the “Open Clay” options providing a place to create by starting with a sphere, cylinder, or slab of clay. Tools are provided, plus glazing and firing on-site. Let your imagination guide your hands. 1729 N. 2nd St., Mpls.

Commune with Nature

Only a few places in town allow you to escape from it all and experience the quad-fecta of the elements—count the Minnesota Zoo as one of the best. The animals roaming the earth year-round. The warmth of the indoor Tropics Trail. The snow monkeys taking in the outdoor air! And for the first part of this year, there’s a dolphin exhibit (a fan-favorite water mammal). 13000 Zoo Blvd., Apple Valley

Eat Local

Escaping the kitchen and eating out is often a welcome change of pace, especially in the winter. One of the things our local chefs do particularly well is celebrate the ingredients nurtured on this land. Minnesota is fifth in the nation in agricultural production, with $16 billion of our economy coming from growing things we eat. The manner in which it’s grown is obviously the finer point that brings us all to the table in different ways, and some of our chefs are keeping their roots very close to home.

The national buzz about Owamni (pictured below, 420 S. 1st St., Mpls.) is well-earned, because the Indigenous-foods restaurant has created a shift in our thinking. By removing all the ingredients that were brought to these lands by colonizers, the menu doesn’t just give us a taste of the past but a taste of who we might be today on an alternative, more natural timeline.

Speaking the language of the small farm, Wise Acre Eatery (5401 Nicollet Ave. S., Mpls.) can account for all of the ingredients in the kitchen. They come from the restaurant’s farm in Plato, Minnesota, which means the menu is planned in harmony with the harvest. If it’s been a rough year for the tomato crop, the pasta might look different—as it should.

And if you believe in gratitude for anything you’re eating, from salad to cheeseburger, Tongue in Cheek (989 Payne Ave., St. Paul) has set a place for you. The eatery’s mission is to only use animals that have lived a good life, being raised sustainably and humanely. The ethos is simple and true for all: Living a good life tastes better.

Water

Our 10,000 lakes are frozen, yet waters still flow in places big and small while ice becomes our best winter friend. 

Float + Soak

Believe it or not, floating in super-salty warm water in a pitch-black (optional), completely silent pod can be one of the most relaxing and rejuvenating hours of your life—try it at St. Paul’s Awaken for Wellness (pictured, 1821 St. Clair Ave.) or its location in Hudson (411 Cty. Rd. UU). Not feeling the float tank? Fusion LifeSpa in Deephaven (18142 Minnetonka Blvd.) offers detoxifying and relaxing steams, baths, and treatments to connect with water in a more traditional spa environment.

Belly Up

For the first time ever, our best ice is going for a record in February. With the help of the city of St. Paul, Minnesota Ice is attempting a Guinness World Records title for the world’s longest ice bar. China currently holds the record at 330 feet, but there’s no doubt we can beat that in Mears Park. 221 E. 5th St., St. Paul

Bask In Bathing

The national trend has finally found its way north, as Watershed Spa opened this past fall to become the first public bathhouse in the Twin Cities. In the former Soap Factory space (fitting, no?), the lower level of the spa is dedicated to creating a ritual bathing haven with steam, a sauna, hydrotherapies, and a large communal pool. Suits are required, but you are free to move between the heated waters and the cold-plunge pool as you hydrate, hydrate, hydrate. 514 SE 2nd St., Mpls.

Slip + Slide: Ice

Ice Castles is created with icicles “grown” on a site in New Brighton (1500 Old Hwy. 8) that local artisans use to build LED-lit tunnels, caverns, towers, fountains, slides, and crawl spaces, plus a Polar Pub. Need more? Escape to The Minnesota Ice Maze, part of Winter Skolstice at Viking Lakes (2645 Vikings Circle, Eagan), starting January 6, and make your way through a “local largest” course made with 300-pound blocks, only to emerge onto an ice slide at the finish.

Go Jump In A Lake

As crazy as that sounds, there are many reasons to saw a hole in a frozen lake top and jump in. Frontiers-of-health types insist it’s good for your cardiovascular system, aiding blood flow. It’s also good for your overall well-being because icy-water submersion tells your cells to make more energy-generating mitochondria. And Polar Plunging is good for your mood because it gives you an instant boost of endorphins.

Special Olympics Minnesota knows for a fact that Polar Plunging is also good for our community—some 15,000 Minnesotans helped fundraise last winter through plungemn.com. To Polar Plunge for good, all you need to do is sign up and agree to fundraise $75. After that, it’s all about courage and commitment.

To train, some people take increasingly long cold showers or fill up their bathtub with cold water and ice cubes. On the big day, they put on their neoprene socks (what avid Polar Plungers use) or shoes (everyone must have footwear when Polar Plunging so that their wet feet don’t freeze to anything once they get out). Super plungers also put on a costume. Costume? For all the social media, of course: Minnesota’s social media feeds fill up with folks in team T-shirts, colorful outfits, and superhero onesies all jumping into cold cut-out pools in the frozen lake top in the bright blue-cast sunlight of a winter day.

Are you up for it? You can connect with the thousand-plus-member Minnesota Facebook group Night Water Butterflies to learn more. (It’s not a great idea to do your first frozen lake dip solo.)

Immersive Spa Day

Secret tip: If you book a spa appointment at Life Time Edina in Southdale, you get access to the entire premium club for the whole day. Sweat it out in a spin class, play some pickleball, then steam and sauna. Make way to your mani or pedi, then refresh in the locker room before grabbing a table on-site at Rare Steak and Sushi. Best day ever.

Winter days can take on a certain sameness—same icy landscape, same four walls—except for the day you jump into a frozen lake. That’s a day you never forget. That’s a day you were strong, brave, and possibly a little nuts—and got proof of it.

Ice-Capades

U.S. Pond Hockey Championships: The greatest hockey event in the world happens this month on Lake Nokomis. Dust off your skates to play (or sign your kid’s team up for Youth Night). Or do what most folks do: Pack a thermos and watch a game between any of 300 or so teams playing on more than 25 rinks. Starts Jan. 19

Wayzata Chilly Open: On February 11, the place to be is Wayzata Bay for a day of ice golf tourneys, snowkite races, “snowga,” and, of course, a chili cook-off. Sign up a team for the golf tourney, or just take it all in, including the restaurants vying for top prizes in the heated competition. Bonus: nearby post-event watering holes.

Art Shanty Projects: Starting January 21, Bdé Umán (AKA Lake Harriet) hosts the free-to-all fest where you can explore and interact with 35+ artist-created structures, sculptures, and other projects. This year’s crop includes Chapsicle of Love, where they’ll be performing actual, legally binding weddings.

Slip + Slide: H2O

Our winters solve one of the momentous pains of taking your family to the water park for the day: no need to apply goopy sunscreen to antsy children. Let that fact alone (but also our subzero temps and early sunsets) be all the license you need to pack up your brood and head to an indoor water park. For those looking for the grandest experience, try Bloomington’s Great Wolf Lodge (pictured, 1700 American Blvd. E.)—it has slides as high as four stories, a poolside bar, a lazy river, and a wave pool. If you’re looking for something slightly more chill, the Venetian Indoor Waterpark in Maple Grove (11801 Fountains Way) has two four-story slides and a massive 20-person spa for parents. Or hit the chillest of them all: St. Paul’s municipal Great River Water Park (270 Lexington Pkwy. N.), which has slides, lap pools, diving boards, and a sauna for less than $10 a person.

Wet Your Whistle (+Toes)

Google “local hotels with pools” and several will pop up—but two truly stand out. There is, of course, the luxury Four Seasons Minneapolis (pictured, 245 Hennepin Ave.) with a spa and indoor pool complete with floor-to-ceiling windows overlooking North Loop’s Gateway District. (Hotel guests can also book luxe spa treatments.) And then there’s the rooftop soaking pool at Hewing Hotel (300 Washington Ave. N.), where you can sit on a ledge submerged in the warm water, sip something on ice, and watch your breath rise as you take in the skyline view—including the neighboring Four Seasons.

Air

The winter air is crisp and cold, yet also filled with warmth, laughter, and energy indoors and out. 

Expand

Photos by Caitlin Abrams

Carried Away!

Hot-air ballooning isn’t just for the warmer months. Soar through the St. Croix Valley year-round (uh, blizzard permitting) with Stillwater Balloon (135 St. Croix Tr. N., Lakeland), offering hour-long airborne tours of the area in high style—complete with a champagne toast upon landing. Prefer to stay on the ground? Watch more than 30 balloons fly through the skies during the magical Hudson Hot Air Affair (pictured) in early February.

Breathtaking Views

Four Seasons Hotel’s outdoor Nordic Village, at its Riva Terrace, features curling, a fire table lounge, cocktails with skyline views, and a four-course dinner served in a private mini cabin. Open to non-hotel guests through March 4. fourseasons.com/minneapolisSecret Slice of Sky

Tucked in among the taller skyscrapers of downtown Minneapolis, Blondette sits on the fifth floor of the Rand Tower Hotel with a view that beats a panoramic skyline. The glass roof and walls allow you to perch, with martini in hand, among captains of the creative class while you glimpse the sky above, old industry looming all around you. Hey, why not make it an overnight! 527 Marquette Ave. S., Mpls.

Hang Time

Need to wear out a rambunctious kid? Urban Air Adventure Park’s Plymouth location, with all its options, is your place. Here, your kid gets go-karts, a climbing wall, a ropes course, performance in-ground trampolines, a warrior course, and a handful of other crazy stuff that defies conventional definition, like the zip-line-esque Sky Rider. Best yet? This is one of the few places where kids pay the premium price and their adults buy a Parent Pass, which gets you access to all the same stuff, at half the price. 3580 Holly Ln. N.

Levitate

Into the idea of skydiving but intimidated by all that sky? iFly’s got you, as it takes the sky out of the diving. Just off of 394 in the shadow of Bacio (earn yourself a dessert or nightcap), iFly replaces the whole jumping-out-of-a-plane thing with vertical wind tunnels powerful enough to smoothly suspend flyers in the air with the same sensation of skydiving. All ages (3 and up) and abilities are welcome. “Flights” can be booked individually (for as low as $65/person) or in groups. 12415 Wayzata Blvd., Minnetonka

Get the full list on Mpls St Paul.

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