What effects did the Mall of America have on the residential real estate in the surrounding area?
Posted on November 22nd, 2009 in Renting & Real Estate | 2 Comments »
ztim21 asked:
Did the job growth lead real estate price to prosper? Was there economic overflow with the mall in that area that proved to be worse for the area? What sort of areas did the best? What it necessarily the real estate closest to the mall, or the nicer neighborhoods closest to the mall? Would a real estate investment like this be a sound investment if it were to happen again?
2 Responses
Carlstadt NJ Real Estate
i think it depreciated the value of real estate bc of the traffic, noise
Chicago Real Estate
efb is right about the traffic and noise being a problem.
What’s not mentioned is what the area was before. This site was home to two different stadiums in the past. There were no new homes built anywhere near it for decades.
It also happens to be across the highway from the airport. Noise from the airplanes is a big factor in that area already, and if anything, that’s gotten worse with the building of a new runway.
The jobs in the mall are primarily low-paying. $10/hr. or less, much of it geared to younger people. These aren’t jobs that will pay enough to buy a home, most of them at least.
Final answer to your question: No, the MOA did not increase the value of homes nearby. If anything, I would think it’d be a poor investment to buy homes near a massive traffic-creating project. Unless you owned the land they wanted to buy to develop, that’d make you some nice profit.