Cost of Living in Minneapolis vs midwest (Eden Prairie, Shakopee: mortgage, brokers)

[joytodd]

One more thanks to all! Just learned today that husbands HR dept is now re-evaluating that 6%!! You have given us sooo much information! We are also sitting down ourselves to re-evaluate what we 'must have' and what we don't. I don't remember who it was now that mentioned it but one serious thing we are now thinking on is a lesser home so that we can save back to possibly buy a vacation place up north. We were able to go as far as Brainerd for a conference when we were in town and that is how we fell in love with MN!
So....I am sure I will be back with more questions as it draws ever closer but wanted to tell you all thank you so much and tell you how much I appreciated all of your insights over all the postings I have done!

[Pisces69]

did you find anything with 20 acres in Minnesota? how much would something like that cost?

[Min-Chi-Cbus]

I found this fun and easy Cost of Living Calculator that you could try using to see what you'd need to make the move:

Cost of Living Calculator: Compare the Cost of Living in Two Cities - CNNMoney

[joytodd]

Originally Posted by Pisces69

did you find anything with 20 acres in Minnesota? how much would something like that cost?

No....there is one property with 17 acres in Nowthen for upper $300's and one in Credit River Twsp in low $400's on 10 acres....one in Chisago City....all three are short sales though with at least one of them sitting on 3 offers (for going on 9 months)..... Other than that we had to look out at LEAST as far as Kimball (wayyyy toooo far to commute) to find anything on the 20 we have now.
Not to say it doesn't exist....just not out there right now.
There are homes in the 1700ish sq ft range on close to 20 acres or so for even upper $200's but they are out a ways and built 107 years ago.....not something we wanted to take on (been there done that!).
So, homes on land DO EXIST.....just not many and you have to be very willing to commute if you are in the $300-$350 max price range like us.

There are a lot of them the farther north you go of course.....

[joytodd]

Originally Posted by Min-Chi-Cbus

I found this fun and easy Cost of Living Calculator that you could try using to see what you'd need to make the move:

Cost of Living Calculator: Compare the Cost of Living in Two Cities - CNNMoney

Thanks! I am on my way over there to take a look! My husband is creating a binder to back up our case....I will have to forward it onto him as well. Thanks again!

[1stpontiac]

Good luck with the HR re-evaluation! FWIW, I think the house and taxes are the two biggies. I thought of this thread this weekend when I saw a gallon of milk advertised for $2.59 or $2.89 on a drugstore sign, and I saw gas around $2.84/gal.

Unfortunately, the two biggies, are really quite significant.

[joytodd]

1stpontiac, I will mention that to him as well. If 'life' costs aren't grossly higher maybe that's what his hr is basing things on. I have learned we aren't the only ones moving to the area having a struggle (same co). But, like you said, the houses and taxes are the biggies unfortuneatley! Even as typing this I bet that they aren't looking at those areas but rather only everyday living.
Thanks!

[golfgal]

Maybe they could give a one time bonus for a larger downpayment on a house so your house payments would be similar? Hard to say without knowing your salary if day to day living will be manageable for you after that. For a family of 6 though, I would say that if you want a comfortable life style, being able to pay your bills without much worry, putting away funds for retirement and savings, having funds so the kids can be in sports or other activities, maybe a vacation over the summer and still have a little left in the checkbook each month, you are going to want a salary of $150,000 or so. Not an extravagant lifestyle, but not pay check to pay check either. Yes, people get by on less but that is a ball park number for a family your size. If you are used to a more extravagant lifestyle, obviously you would need more.

[Min-Chi-Cbus]

Originally Posted by joytodd

1stpontiac, I will mention that to him as well. If 'life' costs aren't grossly higher maybe that's what his hr is basing things on. I have learned we aren't the only ones moving to the area having a struggle (same co). But, like you said, the houses and taxes are the biggies unfortuneatley! Even as typing this I bet that they aren't looking at those areas but rather only everyday living.
Thanks!

The COL calculator link I gave you shows you which things cost more or less, per the most expensive typical household expenses: housing, transit, groceries, etc.

[Reese30]

Originally Posted by GraniteStater

I like the suggestion of Hutchinson. Also keep a sharp eye out for short sales. Minnesota real estate will always be more expensive than just about any area of the Lower Midwest because the economy in Minneapolis St.Paul metro is much better, the educational attainment is higher, and salaries are higher. Real estate prices these days are more in line with reality with what the market with dictate and that is why the overbuilt areas of the Sunbelt, bought by speculators through easy credit, fell off as fast as they did.
I would also look at Wright County as RE prices seem a bit lower there. Commute wouldn't be much better, though.

Why would educational attainment impact real estate prices? I thought "supply and demand" impacted housing costs moreso than just about anything else. I do see the relevance of economic strength and salaries. Educational attainment may be related to the other factors you listed, but I don't think most real estate professionals are concerned with how many degrees their potential customers have as long as they are in good financial standing, and make enough money to afford the mortgage (or rent, if leasing).

Going back to the thread topic, I think the Twin Cities area is a bit more expensive than the majority of the midwest (just slightly below Chicagoland) due to the strong corporate presense in the area, which has attracted an abundance of people to The Cities, thus, increasing the demand for housing.