4 ms·

I live in Minneapolis. The amount of high end condos and lofts going up around the city is staggering. Same thing in the outer ring suburbs. They're going up fa

I live in Minneapolis. The amount of high end condos and lofts going up around the city is staggering. Same thing in the outer ring suburbs. They're going up faster than they can fill them. My buddy was a professional hockey player. He played most of his career in Europe and just recently moved back. Moved into a nice condo in the down town area. Four months after moving in, he's seeing ads for the many, many open condos in his building, which have been discounted some $20-$30K below what he paid. We're now creating a deluge of high end housing that is now sitting empty and the owners/developers are having to compete side by side with each other for tenets now and its become completely cut throat. Add in businesses and people are fleeing the city and those owners are already starting to see the coming nightmare. So yes, I agree we need to build more house, but FFS we need to build according to the needs of the community, not the developer who's in a "get rich" scheme to gentrify huge swaths of the city.

wolverine876 5y ago
Lenders and developers invest based on an expectation of demand for high-end housing. What explains these outcomes?
jeffbee 5y ago
Pretty much nothing in your screed is factual. The Minneapolis "building boom" reflects the general trend in most of the nation: expansion of the housing stock since about 2005 has been negligible, much less than 1 per hundred residents per year. This is about half the rate of real expanding cities like Houston. I don't know what better signal you expect than the fact that median sale price of homes in Minneapolis proper has gone up 45% in only 5 years and the time to sell is now 11 days instead of 21 days in 2016, according to Redfin. https://fred.stlouisfed.org/graph/?g=Fu56 https://fred.stlouisfed.org/graph/?g=Fu56
tqi 5y ago
I'm not sure I understand your complaint here - it sounds like developers built a bunch of supply, and prices responded by going down? Isn't that exactly what we want?
- padastra 5y ago
  If prices go down because of increased supply, you’re a filthy capitalist. No, what we need is bread lines and the bread itself should be cheap!

wolverine876 5y ago

Lenders and developers invest based on an expectation of demand for high-end housing. What explains these outcomes?

jeffbee 5y ago

Pretty much nothing in your screed is factual. The Minneapolis "building boom" reflects the general trend in most of the nation: expansion of the housing stock since about 2005 has been negligible, much less than 1 per hundred residents per year. This is about half the rate of real expanding cities like Houston. I don't know what better signal you expect than the fact that median sale price of homes in Minneapolis proper has gone up 45% in only 5 years and the time to sell is now 11 days instead of 21 days in 2016, according to Redfin. https://fred.stlouisfed.org/graph/?g=Fu56 https://fred.stlouisfed.org/graph/?g=Fu56

tqi 5y ago

I'm not sure I understand your complaint here - it sounds like developers built a bunch of supply, and prices responded by going down? Isn't that exactly what we want?

padastra 5y ago
If prices go down because of increased supply, you’re a filthy capitalist. No, what we need is bread lines and the bread itself should be cheap!