Mixing Apples and Oranges

Are real estate prices in rural South Dakota and Mississippi really twice as much as in Dallas?

tape measureThat’s the takeaway, at least superficially, from a NYT piece profiling homes in South Dakota, Mississippi, and Dallas that are all now on the market for around $800k.

Prices Per Square Foot; “A Creek Runs Through It”

The catch, of course, is that the South Dakota and Mississippi properties include significant acreage:  16.7 acres and 21.5 acres, respectively.

By contrast, the suburban Dallas home sits on a .20 acre lot.

I have no idea what local land values are in South Dakota and Mississippi, but certainly they’re not zero — especially when the land includes a picturesque creek and woods (South Dakota), or 750′ of river frontage and two, bass-stocked ponds (Mississippi).

Back out some reasonable estimate for the land, and I’m pretty sure that real estate prices in those places aren’t $402 a square foot and $205 a square foot, respectively, but something much lower (vs. Dallas’ $206).

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

Leave a Reply