Pent-up demand and low interest rates, combined with increased demand for desirable neighborhoods and school districts have been driving a teardown craze which has been going on for a number of years. Two neighborhoods at the epicenter of this craze are the Minneapolis Linden Hills neighborhood and the city of Edina.
My experiences with teardowns in both of these neighborhoods as well as the Minneapolis Longfellow neighborhood last week made me curious to dip in deeper into teardowns listed on the MLS built since 2015. Red markers below are sold, orange pending, and green active and available for sale.
Although they are scattered throughout the metro, the highest concentration is still in the Edina and Linden Hills neighborhoods. As I was chatting with a builder in the Linden Hills neighborhood, he said they get contacted regularly by homeowners wanting to sell their home but the market is starting to slow down as it gets saturated... not surprising given how many have already been built and sold in recent years. I was amazed that 67% of the comps I pulled for a coming Edina listing were built in the last 3 years... my listing will be in the historic Country Club district, the only part of Edina NOT marked by teardowns.
Thinking you might like to buy a new house in an established neighborhood? They actually are available at different price points, but $400-$500k is the really price point for 'affordable' new construction homes in the city or in new developments. In the higher price ranges, most builders no longer do 'spec' homes but custom build to suit their buyer.
Check the maps below to see where to find new construction teardowns by price range... then contact us if you would like to learn more or take a look! Interesting to see the concentration of new construction teardowns in the Longfellow neighborhood, as well as some clusters in St. Paul Mac-Groveland neighborhood.
Sharlene Hensrud, RE/MAX Results - Walkable Neighborhood Realtor