Ask anyone living in the Twin Cities if they know where Pine River, MN is. Odds are they won’t, but those who do have likely been working with a realtor to find homes in the area.
That’s because Pine River is now the frontier for a growing wave of transplants taking up residence in the Brainerd Lakes Area. Here’s the scoop on why they’re searching and how it’s driving up home values for investors.
Limited inventory
Across Minnesota, the inventory of single-family starter homes has been tight. Parents with one or two small children are trying to get into the $220-350k home price range. But most starter homes are already occupied, with owners who locked in their mortgages years ago at lower interest rates than we’re seeing today.
This same dilemma is compounded in Pine River by the fact that many homes are generational–owned by grandparents and parents and filled with sentimental memories for adult children waiting to inherit.
New construction hasn’t kept pace with the growing number of folks who want to buy, so any house going on the market right now will be toured by multiple interested parties right away.
Urban flight
As the politics in Minneapolis and St. Paul ebb and flow, more and more families are looking to move out of the greater metro area altogether. Some feel St. Cloud and the micropolitan area surrounding it is the appropriate mix of city and suburbia to suit their needs.
But others have spent their summers in the Brainerd Lakes Area and see north Central Minnesota as a healthier alternative to urban child-rearing. This urban flight is swelling the number of interested buyers and raising perceived value for all homes in Pine River.
Bravely ventured….
If you’re looking to add long-term rentals to your real estate portfolio, you’ll want to consider Pine River and its demand for housing as a ready market. However, make sure you’ve got a banker and realtor on board, because these properties go quickly!
This content is provided for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. Readers should consult with licensed professionals regarding their specific circumstances.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
