There is a massive arb opportunity out there in playing off La Jolla, CA, and Sioux City, IA, real estate prices. If you just buy real estate in Sioux City, and sell it in La Jolla, you could … now wait, that won’t work. Hang on, I’ll figure out the trade mechanics.
In the interim, from a new Coldwell Banker release:
Although both are waterfront cities, something besides the salt water separates La Jolla, Calif. on the Pacific Ocean from Sioux City, Iowa on the Missouri River – a $1.7 million dollar difference in the cost of homes studied in the 2008 Coldwell Banker® Home Price Comparison Index (HPCI). In an annual comparison of similar homes in 315 U.S. markets, La Jolla topped the chart as the most expensive real estate market in the nation with a $1,841,667 average home price. Sixteen hundred miles away in America’s heartland sits Sioux City, the most affordable real estate market in America, where a similar home would cost $133,459.