Virtuous — and Vicious — Cycles
What happens when a for-sale home saddled with sky-high property taxes doesn’t sell?
Frequently, the owner opts to rent it out instead.
Fast forward 2-3 years, when the surrounding
block and similar ones are not-so-suddenly studded with rentals.
Prospective home Buyers who want to be surrounded by other homeowners balk — and look for homes elsewhere.
That puts further pressure on home prices, which begets more renting, which . . . you get the idea. See also, “Minneapolis Upper Bracket Homes? What a PiTi”
Reinforcing Cycle
In a nutshell, that’s the phenomenon I witnessed just last week, when relocation clients opted to skip Minneapolis, and head for one of the Twin Cities’ high demand first-rung suburbs close to the lakes (wanna guess which one?).
As a long-time Minneapolis resident, I saw this dynamic play out in Kenwood in the 1980’s.
I have no desire to see a re-run now.
P.S.: Just as nobody washes a rental car, rental properties are seldom kept up as well as owner-occupied ones.
