urbanMSP

I guess people just like to spend money for no reason.

I'm sure there are many people out there who find how much money you're pouring into period-specific details (to the point of ripping off already-installe siding because it's an inch off) "spending money for no reason." People behave in ways that seem rational to themselves and not so much to others, like, all the time.

Yeah.. I'll admit upper 3ks seems a bit much to me, at least for only 2 BR with a bonus space off the garage. But keep in mind brand-new 2BR/2BA apartments at Lime with 1,100 sqft are going for ~$2,100. I don't think parking is included in that (fact check me plz), so add in ~$200/mo more. These townhomes have a seaparate entrance, attached/private parking, and ~50% more living space than a traditional apartment, plus an extra half bath. I would guess that renting here includes access to the all Elan amenities?

I live in the exact apartment you're speaking of. We have a 2 bed 2 bath 1,100 sq foot apartment with two dogs and two parking spaces. Our rent is $2,400 and we are getting one dog and one parking spot as a concession. I believe the base rent on our apartment is $2,225.

But I'll just note in my defense that the siding thing was a screw-up on the contractor's part. They went ahead and changed the siding profile without getting confirmation from us.

To belabor the point , we pretty much had to restart the siding because we're planning to open up the enclosed porches in a few years and it would have looked totally stupid to have siding an inch wider on the sides of the house and the original profile siding on the front (current inner porch wall).

I don't think I agree with David that prices in the Wedge are "much less" than peak market values - this listing has a 10-year LHE average price trend chart. As of now, they're matching 2007 peak numbers. Especially when you consider pre-2007 interest rates were around 50% higher than today's (making a $300k purchase back then cost more each month than now).

I would have to do more research to be more exact but I bought in 2004 and that was pretty close to the peak of the home market. Not quite the absolute peak but really close. Saying a 2006-built condo peaked in 2007 is a little misleading (not intentionally so!). We refinanced a couple of years ago and the monthly payment is basically the same but the loan period was cut in half, saving a boatload on interest.

Our assessment dropped dramatically after the crash and still hasn't recovered. Assessments are almost completely divorced from market value of course, but it's the only gauge I have on the current value of *our* house. One across the street sold for way higher than I would have imagined so it's quite possible our house is worth a lot more than I think it is. That would be a nice surprise. I don't plan for find out for another 10 years at least.

Saying a 2006-built condo peaked in 2007 is a little misleading (not intentionally so!).

The listing shows the neighborhood's price average over time (not just this 2006-built condo), which shows values of sold homes peaking in 2007 (just like the rest of the US market), and are now back at that point again (and rapidly rising).

Either way, I don't think people who are likely looking for shorter-term living can find something nicer in the Wedge for much less, if at all. Certainly not if you want to go bigger than 2BR/2.5BA with similar finishes to new construction townhomes (and you actually include full cost of ownership - PIT/maintenance/etc).

Something I read somewhere that's really smart about comparing owning a house vs renting. The rent you pay is your maximum monthly housing payment. Paying your mortgage is your minimum monthly housing payment. The maintenance of your property isn't covered in that cost, for example.

I'd say they are paying for convenience over anything else. No repair responsibilities, no shoveling, no lawn care, packages accepted for them and delivered for them, concierge service, high class amenity package, location, flexible lease terms, no Realtor to deal with, no long term commitment, no fear of housing bubble bursts, becoming underwater in a loan, feeling stuck in a house you don't want anymore, etc etc etc etc etc.

YEAH. NO REALTOR TO DEAL WITH.

I would love to see a survey of people who rent these luxury apartments all over the city. Incomes, jobs, reasons for renting where they do, etc. Because it IS fascinating. These rents are upwards of 4k per month. That's the equivalent of a $560,000 mortgage, albeit without any maintenance costs, but still-- month to month, these luxury apartments seem like a screaming money pit.

Another way to look at it-- a housing affordability calculator, for a couple making $120k with total $500 in non-housing debt each (car payments, student loan, etc), based on the average 28% recommended income-to-housing ratio, is suggested to expect a $2300 mortgage payment every month.

As to why they do it.... I guess these renters can afford it? They like living in a trendy part of town? Walking to the grocery store? Walking to their favorite bars? Having all-new modern appliances, rooftop decks, etc?

My college friend's mother moved from Los Angeles to Minneapolis and was set up temporary at Calhoun Beach Club. She decided to stay living there. She had a teenage daughter at Benilde and an elderly mother who lived with her. There was no way a busy professional, a teenager and a geriatric woman would have an interest in a SFH. Especially since they had zero experience in home maintenance or snow removal.

Probably not a typical situation, but some insight on why someone would "throw money away" renting a $4K+ apartment.

My college friend's mother moved from Los Angeles to Minneapolis and was set up temporary at Calhoun Beach Club. She decided to stay living there. She had a teenage daughter at Benilde and an elderly mother who lived with her. There was no way a busy professional, a teenager and a geriatric woman would have an interest in a SFH. Especially since they had zero experience in home maintenance or snow removal.

Probably not a typical situation, but some insight on why someone would "throw money away" renting a $4K+ apartment.

I'm not even saying SFH is the other option, I only cited my specific situation as a comparison datapoint. There are plenty of much less expensive apartments in the same general area. Are granite countertops really worth that much?

Like spdcheetah I'm totally fascinated by the prospect that people would pay that much in rent in this market.

I have two friends that are pharmacists. Combined income is about $230k. They werent spending this much, but pretty close. Why? Because they wanted to rent for 2 years in Uptown before moving to the suburbs and settling down. It would not have made sense for them to buy for 2 years to have to sell and pay realtor fees or worry about housing prices possibly going down.

I'm not even saying SFH is the other option, I only cited my specific situation as a comparison datapoint. There are plenty of much less expensive apartments in the same general area. Are granite countertops really worth that much?

Like spdcheetah I'm totally fascinated by the prospect that people would pay that much in rent in this market.

Buddy, it ain't the granite counter tops that make the Calhoun Beach Club expensive.

Buddy, it ain't the granite counter tops that make the Calhoun Beach Club expensive.

Well, "Buddy," pray tell, what is it then?

Buddy, it ain't the granite counter tops that make the Calhoun Beach Club expensive.

Well, "Buddy," pray tell, what is it then?

Because it looks over the lake and is historical and classy.

I have two friends that are pharmacists. Combined income is about $230k. They werent spending this much, but pretty close. Why? Because they wanted to rent for 2 years in Uptown before moving to the suburbs and settling down. It would not have made sense for them to buy for 2 years to have to sell and pay realtor fees or worry about housing prices possibly going down.

kinda goes against the mayor's plan to grow the city there.

An ambiance that is a step above the less expensive options from the moment you walk (or drive) in. Great lighting throughout the lobby and hallways, tasteful art and attractive floor coverings in all the common areas. A highly attentive staff and watchful security personnel. Access to a picturesque swimming area, a top notch bar+restaurant attached to your building, a beauty boutique. She said that the fitness area is what convinced her, again some people are not concerned about maintaining a fitness regimen, I get that.

The units themselves have high quality finishes above and beyond the counter tops. Top end plumbing, carpets, cabinets. As a amateur woodworker myself I was really impressed by the trim and moulding. Along with a well framed view of Lake Calhoun. At 1500sq feet the place was not small either.

I suppose someone could rent two of these and feel like they are getting a better deal. High end homes is one area where the free market works well. I do not believe that those living there are not aware of other options available to them. To some aesthetics are worth the extra scratch.

I have two friends that are pharmacists. Combined income is about $230k. They werent spending this much, but pretty close. Why? Because they wanted to rent for 2 years in Uptown before moving to the suburbs and settling down. It would not have made sense for them to buy for 2 years to have to sell and pay realtor fees or worry about housing prices possibly going down.

kinda goes against the mayor's plan to grow the city there.

Huh?

The mayor wants to get to 500k by not only adding housing units, but also by keeping/attracting young families with children. "Settling down" in the 'burbs is not helping that goal.

The mayor should try harder, then.

WWWWD



(what would wonder woman do?)

The mayor wants to get to 500k by not only adding housing units, but also by keeping/attracting young families with children. "Settling down" in the 'burbs is not helping that goal.

Aaah, I see. They were both reverse commuting, so moving to the burbs gets them closer to their jobs.