As a Colorado native I personally love heartland real estate. However, right after high school I had the same feeling that many young people do, that I needed to get out and see the world. A friend and I flew to Australia with two goals in mind. Expand our world view and surf as much as possible! I accomplished both things and then decided to come back to Colorado, the best state in the USA!
At the time I did not care about finances and real estate. We worked enough to pay the rent and then go out and explore. However now that I am in my mid 20’s I often think about the differences between heartland real estate and coastal real estate.
Why are some people willing to pay so much money to live on the coast? Prices keep getting driven up and people complain and moan but ultimately end up purchasing multi million-dollar homes. Does the normal rent vs. own calculation even make sense when we are talking about these high-priced properties?
Heartland Real Estate Vs. Coastal Real Estate Perspectives
When we lived in Australia we had a fantastic new modern apartment. With a total of 4 roommates rent was $500 AUD a month (per person). This place had views of the inlet bay and I was able to walk with a surfboard to the beach in under 10 minutes…not too shabby.
If I were to ever go live on the coast again I would for sure want to be right by the beach. However, my experience was in 2008 (again I knew the world was in a recession but had no idea of the severity) we received killer deals from a new build that was dying for tenants.
Now everything is more expensive, a lot more! So, the question is who is buying these extremely expensive homes? Why not rent and be on the beach and then invest in other ways then a primary residence? Is owning a home still the American dream regardless of where you live?
Colorado has been my lifetime home other than my year away in Australia. I was born in the mountains and there is something about it that makes it hard to leave. In contrast to the ocean there are many places in Colorado you can live that are far less expensive.
The front range and mountain towns have experienced a major boom like many other areas of the country, but that is only half of the story. Your dollar can still stretch further then many coastal towns and you get 300 days of sunshine. Heartland real estate in my opinion still presents value not just in Colorado but other locations as well.
Should heartland real estate be valued differently than coastal real estate?
Obviously personal residences are priced by people’s hearts rather than their investment calculators and that is why we often see short term fluctuations. In my opinion I think it is important to lower your housing costs to get ahead. Should the normal rules of rent vs. own be applied to all markets? Does anyone have a different way they value properties in areas that are extremely expensive? Am I being a heartland real estate minded person by thinking that the boom on the coasts can’t continue into perpetuity? Help me out and let’s discuss what makes sense for those who are considering buying a home in these various markets.
What Are Your Thoughts?
- Where do you live for perspective on your comments?
- Do you think different metrics should apply when evaluating heartland real estate vs. coastal real estate?
- If you have lived in both what is your opinion on where heartland real estate is headed vs. coastal real estate?