Home Buying in Brooklyn Park>Question Details

zuleikaboyd, Home Buyer in Brooklyn Park, MN

Why is there such a huge fluctuation in home prices in Brooklyn Park, MN, compared to those in Texas?

Asked by zuleikaboyd, Brooklyn Park, MN Tue Jul 30, 2013

I an thinking of relocating my family to Brooklyn Park to be near relatives, but am somewhat (very) offput by homes selling for $100,000 that aren't comparable to similar priced homes (in size, style, or construction), down here in Texas...and most of these homes aren't in desirable areas. How does the MN real estate market justify such prices for homes that would be considered "starter homes" for young couples just starting out. That's a lot of money to spend for homes that don't reflect those price tags.

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Texas does have really low prices on homes compared to most anywhere else in the country.

But trying to compare prices in Texas to the Twin Cities and saying the prices aren't justifiable is like comparing the Twin Cities to San Francisco or New York City and expecting the same prices. Local prices are driven by lots of economic factors like costs & scarcity.

Texas has some of the lowest prices because they have very few land regulations which keeps land prices low (and creates lots of sprawl). In addition, they have some of the cheapest labor in the country which keeps prices much lower.

On the other hand, the Twin Cities have many positive aspects as well that keep most of the 3.5 Million of us quite happy to live here. Come visit and see if it's right for you :)

Bill Wallace
RE/MAX Advantage Plus
1 vote Thank Flag Link Tue Jul 30, 2013
It is simple. Housing is a reflection to the local economy and supply versus demand. Real estate will always be hyperlocal. I think everyone here has the same point: my buyers in Brooklyn Park don't have the option of buying a house in Texas! Your home values mean nothing. The funny thing is that Brooklyn Park is probably one of the cheapest, and BEST, first-time buyer markets right now in the twin cities.

Free advice is don't move to Minnesota due to finances. We are more expensive than a lot of people think, and the twin cities is a bigger metropolitan area than people think.

If you are serious about relocating you will want a good Realtor who understands that market, and quite frankly you will need to adjust your expectations to our market. I would love the opportunity if you so choose to move forward just let me know! Up here we are free to work with.

Chris Block
Realtor North Suburbs
651-307-7663
chris.block@imetroproperty.com
0 votes Thank Flag Link Tue Jul 30, 2013
All real estate is local and it is driven by supply and demand. The schools, employment opportunities, lifestyle, and local amenities will all affect home values. Remember the saying, "Location, Location, Location"? Minnesota is very popular because of our good schools, health care, trail system, lakes, recreation, and other aspects that are different than you would find in Texas.

Also, prices in Texas will vary widely between cities and in different parts of the state. For example, Plano Texas is much more expensive than say Wylie Texas even though they are only 10 miles apart. Back in the late 1980s and early 1990s, the real estate market in Texas was very depressed when the rest of the country was not. That forced prices low and although they have come back since then, they are still running behind other areas of the county. Minnesota was not affected by the local Texas "oil bust" that happened back then (I used to live in Dallas).

Need more information on areas? Checkout this "Lifestyle Search" feature and see what you think!
http://www.exitrealty.com/lifestyle_search.aspx
0 votes Thank Flag Link Tue Jul 30, 2013
And, really good point, Bill!!! We can't sometimes compare "apples to apples" with regard to housing types. The fact that a small 3 BR rambler in San Francisco will sell for $750K and sell here for $200K is a perfect illustration to the more intrinsic variables that defy description!
0 votes Thank Flag Link Tue Jul 30, 2013
Hi, zuleikaboyd!
I think part of the reason our real estate market is more robust here in MN than in other areas is because of our low unemployment rate (only around 5% when national is around 7%). And, that there is a fair amount of white collar industry here. The median income is approximately $15-$20K higher than the median income of Texas. The home ownership rate is higher and the people living below the poverty level is lower.

All of these factors don't make MN BETTER than Texas, it's just an explanation of why the economy overall is more healthy, and that is reflected in home prices. We certainly DO have areas of the Twin Cities where prices have suffered significantly, and Brooklyn Park was one of them. There is also a wide variety of types of housing in Brooklyn Park which accounts for why some housing is quite inexpensive and some is quite a bit higher.

I'm not sure this will make you feel any better about it!! :/ But, it sometimes helps to see solid numbers rather than just saying, "That's just the way it is!!"

good luck~
0 votes Thank Flag Link Tue Jul 30, 2013
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