Best Places To Buy A House In Minnesota For 2020


Using science and data, we can tell you which places in Minnesota have seen home prices rising and people flocking over the past year.

Editor’s note: This is not investment advice and we are not financial advisers. Article updated for 2020.

Swipe left for slideshow. Article continues below.

There's a the age old question everyone thinks about when they decide to move to a city in Minnesota:

Should I buy a place or rent? Well, we aren't here today to solve that problem for you exactly. We are just assuming you'll do the right thing and a buy a place. And while we are happy to tell you the best place to live in Minnesota, this analysis is going to tackle the question of the best place to buy a house as an investor. That is we are going to try and determine the up and coming cities in the North Star State.

To do that we are going to look at places in Minnesota that are growing faster than average, but where home prices are below average. In every day terms, the "deals". The best deal in Minnesota at the moment? That would be Redwood Falls according to our analysis.

Here's a look at the top ten places to buy a home in minnesota for 2020:

  1. Redwood Falls (Photos | Homes For Sale)
  2. Chisago City (Homes For Sale)
  3. North Oaks (Photos | Homes For Sale)
  4. La Crescent (Photos | Homes For Sale)
  5. Montevideo (Photos | Homes For Sale)
  6. Lake City (Photos | Homes For Sale)
  7. Morris (Photos | Homes For Sale)
  8. Byron (Photos | Homes For Sale)
  9. St. Paul Park (Homes For Sale)
  10. Dayton (Photos | Homes For Sale)

What's the best place to buy a home in Minnesota for 2020? According to our analysis, would the the ideal place to buy a home looking into the future.

The methodology that wen't into this can be a bit complicated, so we'll break it down for you in as much detail as we can below. If you're not worried about finding a deal on good places to live, check out the most expensive places to live in minnesota and, for those of you on a budget, the cheapest places to live in minnesota.

For more Minnesota reading, check out:

The 10 Best Cities To Buy A House In Minnesota For 2020

Redwood Falls, MN

Overall SnackAbility

7
/10

Population: 5,004
Median Home Price: $96,600
Population Change: -0.5%
Home Price Change: 2.2%
More on Redwood Falls: PhotosHomes For Sale | Data

As the immigrant and Euro-American population of the North American east coast region grew, population pressures affected people far inland. People moved west to find new homes as more and more land was used by farmers. The Minnesota area is the ancestral homeland of the several Dakota peoples, who consisted of the loosely confederated Oceti sakowin. By 1700, Ojibwe, who spoke an Anishinaabe language, had also come to what is now Minnesota from further east around the Great Lakes. At times they came into conflict with the Dakota over land and resources, and began to push them to the west.

Source: Public Domain
Overall SnackAbility

5
/10

Population: 5,043
Median Home Price: $244,800
Population Change: 0.7%
Home Price Change: 6.8%
More on Chisago City: Homes For Sale | Data

North Oaks, MN

Overall SnackAbility

7
/10

Population: 5,068
Median Home Price: $622,000
Population Change: 2.2%
Home Price Change: 7.1%
More on North Oaks: PhotosHomes For Sale | Data

La Crescent, MN

Overall SnackAbility

9.5
/10

Population: 5,087
Median Home Price: $176,400
Population Change: 0.8%
Home Price Change: 1.8%
More on La Crescent: PhotosHomes For Sale | Data

Montevideo, MN

Overall SnackAbility

8
/10

Population: 5,139
Median Home Price: $82,600
Population Change: -0.5%
Home Price Change: -2.6%
More on Montevideo: PhotosHomes For Sale | Data

Lake City, MN

Overall SnackAbility

6
/10

Population: 5,165
Median Home Price: $160,700
Population Change: 0.2%
Home Price Change: 7.9%
More on Lake City: PhotosHomes For Sale | Data

The city of Lake City is located 65 miles southeast of the Twin Cities at the intersection of U.S. Highways 61 and 63 on the Mississippi River at Lake Pepin. Lac de Pleurs was the name given to Lake Pepin by Father Louis Hennepin, who camped on the shore of the lake in 1680. He christened the large body of water Lac de Pleurs after observing his Sioux captors weeping near the lake over the death of a chief's son. The war party of Isanti Sioux had captured Hennepin and his two companions several miles south along the Mississippi and were camping near the lake on their return north to their Sioux villages near present-day Mille Lacs.

Morris, MN

Overall SnackAbility

7
/10

Population: 5,353
Median Home Price: $159,900
Population Change: 0.5%
Home Price Change: 4.1%
More on Morris: PhotosHomes For Sale | Data

Morris was platted in 1869, and named for Charles A. Morris, a railroad official. A post office has been in operation at Morris since 1871. Morris was incorporated as a city in 1902.

Byron, MN

Overall SnackAbility

6
/10

Population: 5,366
Median Home Price: $199,600
Population Change: 1.8%
Home Price Change: 9.1%
More on Byron: PhotosHomes For Sale | Data

Byron was platted in 1864. The city was named after Port Byron, New York by a settler from that place. A post office called Byron has been in operation since 1868. Byron was incorporated in 1873.

Overall SnackAbility

8.5
/10

Population: 5,372
Median Home Price: $174,200
Population Change: -0.1%
Home Price Change: 4.1%
More on St. Paul Park: Homes For Sale | Data

Dayton, MN

Source: Public domain
Overall SnackAbility

6
/10

Population: 5,487
Median Home Price: $277,400
Population Change: 4.8%
Home Price Change: 12.4%
More on Dayton: PhotosHomes For Sale | Data

How do you determine the best places to buy a home in minnesota for 2020?

We were in real estate for almost five years and have been working on this site for another three. Suffice is to say, we've put a lot of thought into what goes into finding a good place to buy a home.

So all that thinking has come to this moment where we get to spell out how we'd approach finding an up-and-coming place to live in Minnesota. Put differently, the analysis will try to find places in Minnesota with undervalued homes relative to pent up demand.

To do that we looked at the most recent American Community Survey Census data for 2014-2018 and compared it to the previous vintage (2012-2016). Specifically, we used the following criteria:

  • Y-o-Y Change In Population (People want to live here)
  • Y-o-Y Change In Median Home Prices (People are willing to pay for it)
  • Home Prices Relative To The State Average (It's still kinda cheap)

We want places that are growing, have seen home prices increase in recent years, and are still "cheap" for Minnesota with the following caveats:

So of the 0 cities and towns in Minnesota, only 147 places made it through our initial filters to even be considered.

We then ranked each place from 1 to 147 for the criteria mentioned above with 1 being the best for that criteria. We averaged the rankings to create a "best place to buy" index with the place having the lowest index being the best. You can download the data here.

Turns out that Redwood Falls is the best potential gem in the not-so-rough in the North Star State.

Read on for more on these places.

There You Have It - The Best Places To Purchase A House In minnesota for 2020

There's our analysis of the best places to buy a house in Minnesota. And, to be clear, we aren't necessarily saying these places are the best places to live, just that it looks like they might be in a couple of years based on the data.

In fact, every place in the following table meets our criteria, so even though it may not look super long, remember we started off with all 0 places in the state.

So if we'd could rent or buy in these cities, we'd definitely buy.

For more minnesota reading, check out:

Detailed List Of The Best Places To Buy A Home In Minnesota

City Rank Median Home Price Population Change Home Price Increase
Redwood Falls 1 $96,600 -0.5% 2.2%
Chisago City 2 $244,800 0.7% 6.8%
North Oaks 3 $622,000 2.2% 7.1%
La Crescent 4 $176,400 0.8% 1.8%
Montevideo 5 $82,600 -0.5% -2.6%
Lake City 6 $160,700 0.2% 7.9%
Morris 7 $159,900 0.5% 4.1%
Byron 8 $199,600 1.8% 9.1%
St. Paul Park 9 $174,200 -0.1% 4.1%
Dayton 10 $277,400 4.8% 12.4%
Glencoe 11 $139,200 -0.3% 8.9%
Zimmerman 12 $175,300 2.2% 8.3%
Falcon Heights 13 $288,200 -0.0% 1.2%
Isanti 14 $165,000 2.0% 12.1%
Corcoran 15 $319,700 1.8% 5.0%
Delano 16 $255,000 1.8% 3.5%
International Falls 17 $82,200 -1.3% -5.0%
Stewartville 18 $170,100 0.3% 4.2%
Jordan 19 $208,200 1.3% 2.0%
Medina 20 $636,500 4.6% 0.9%
Kasson 21 $171,600 1.1% 5.0%
Spring Lake Park 22 $176,900 -1.2% 5.4%
Litchfield 23 $127,400 -0.2% 3.7%
St. Joseph 24 $159,700 1.1% 1.7%
Belle Plaine 25 $207,600 1.4% 10.4%
Albertville 26 $234,200 1.0% 17.9%
Minnetrista 27 $454,600 3.1% 2.0%
St. Francis 28 $201,200 1.0% 16.8%
Waite Park 29 $150,300 2.2% 10.8%
New Prague 30 $232,200 1.9% 5.5%
Shorewood 31 $460,800 0.7% 5.7%
Crookston 32 $125,800 0.0% 13.4%
Wyoming 33 $226,100 0.6% 7.4%
Orono 34 $649,000 1.6% 15.1%
Baxter 35 $199,300 1.2% 3.2%
Mahtomedi 36 $320,000 1.1% 4.6%
Virginia 37 $88,200 -0.5% 5.5%
Oak Grove 38 $267,700 1.5% 4.9%
Cambridge 39 $154,900 1.5% 11.2%
East Grand Forks 40 $191,100 0.2% 5.6%
Little Falls 41 $128,400 0.2% 6.2%
Thief River Falls 42 $122,000 -0.1% 3.7%
Lake Elmo 43 $413,100 2.0% 4.7%
St. Anthony 44 $251,800 1.1% 5.8%
Victoria 45 $427,700 4.1% 3.1%
Waseca 46 $121,500 -1.0% 0.5%
Detroit Lakes 47 $177,300 0.6% 6.2%
Mound 48 $248,600 0.3% 9.0%
Hermantown 49 $225,200 0.2% 1.5%
Fairmont 50 $121,600 -0.6% -0.2%
Arden Hills 51 $282,900 0.4% -0.3%
North Branch 52 $184,800 0.8% 7.1%
Little Canada 53 $216,300 0.6% 6.7%
Big Lake 54 $185,500 1.7% 7.5%
Grand Rapids 55 $143,900 0.4% 1.5%
Mendota Heights 56 $373,900 0.3% 3.4%
St. Peter 57 $166,000 0.9% -1.0%
East Bethel 58 $232,600 0.6% 4.2%
Waconia 59 $288,600 2.0% 8.8%
Cloquet 60 $142,500 0.3% 1.9%
North St. Paul 61 $192,500 0.8% 5.0%
Rogers 62 $314,900 1.7% 5.4%
Mounds View 63 $188,100 0.7% 4.9%
Worthington 64 $128,800 0.0% 0.0%
New Ulm 65 $133,900 -0.0% -1.8%
Vadnais Heights 66 $236,200 0.7% 6.8%
Alexandria 67 $176,500 1.3% 7.0%
Brainerd 68 $115,300 -0.0% 4.4%
Monticello 69 $189,100 0.9% 2.4%
Sauk Rapids 70 $157,300 1.3% 2.1%
Fergus Falls 71 $128,600 0.3% 6.0%
North Mankato 72 $183,700 0.9% 4.2%
Marshall 73 $148,100 0.0% 3.8%
Hutchinson 74 $144,500 0.3% 2.3%
Robbinsdale 75 $185,300 0.1% 7.9%
Hugo 76 $250,000 1.2% 0.3%
Bemidji 77 $131,500 1.4% 1.1%
Buffalo 78 $196,600 0.6% 5.9%
Hibbing 79 $103,000 -0.5% -0.8%
Otsego 80 $227,000 3.6% 13.7%
Ham Lake 81 $291,400 1.0% 4.1%
Red Wing 82 $171,300 0.2% 5.0%
Sartell 83 $195,900 2.0% 5.2%
St. Michael 84 $249,700 1.2% 7.3%
Anoka 85 $189,600 0.3% 8.2%
Albert Lea 86 $97,700 -0.2% 3.5%
Hopkins 87 $223,300 0.5% 4.2%
Stillwater 88 $271,000 0.2% 5.9%
Willmar 89 $134,900 0.1% 2.4%
Forest Lake 90 $260,100 1.2% 6.4%
West St. Paul 91 $192,700 0.0% 5.1%
Columbia Heights 92 $169,600 0.7% 5.3%
Northfield 93 $216,600 -0.4% 7.1%
South St. Paul 94 $177,700 -0.1% 5.0%
New Hope 95 $213,900 0.1% 5.7%
Lino Lakes 96 $280,300 1.0% 4.2%
Golden Valley 97 $288,700 0.7% 3.7%
New Brighton 98 $242,900 0.5% 5.5%
Hastings 99 $199,600 0.3% 3.7%
Farmington 100 $242,100 0.9% 8.1%

How Is The Area In ?

About Chris Kolmar

Chris Kolmar has been in the real estate business for almost ten years now. He originally worked for Movoto Real Estate as the director of marketing before founding HomeSnacks.

He believes the key to finding the right place to live comes down to looking at the data, reading about things to do, and, most importantly, checking it out yourself before you move.

If you've been looking for a place to live in the past several years, you've probably stumbled upon his writing already.

You can find out more about him on LinkedIn or his website.

Leave a Reply

Your email address will not be published. Required fields are marked *