Suppose real estate is the most significant investment a majority of people make in their lifetime. In that case, it’s best to understand the places in Minnesota with best potential return on investment.
After working in real estate adjacent roles for over a decade, I had the hypothesis that the best place to buy for a return on investment would be up-and-coming cities. Smaller cities where crime might be high now, but people still move to.
To test my hypothesis, we are going to look at places in Minnesota that are growing faster than average, but where home prices are below average, and crime rates are higher than average.
In everyday terms, these might be “deals”. The best deal in Minnesota at the moment according to Saturday Night Science? That would be Redwood Falls.
Table Of Contents: Top Ten | Methodology | Summary | Table
The 10 Best Places To Buy A Home In Minnesota For 2024
- Redwood Falls
- Lake City
- Montevideo
- La Crescent
- Chisago City
- North Oaks
- Morris
- St. Paul Park
- Carver
- Glencoe
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.
For more Minnesota reading:
- Best Counties To Live In Minnesota
- Best Places To Raise A Family In Minnesota
- Best Places To Retire In Minnesota
The 10 Best Cities To Buy A House In Minnesota For 2024
1. Redwood Falls
/10
Population: 5,091
Median Home Price: $149,029
Population Change: -0.2%
Home Price Change: 0.5%
More on Redwood Falls: Real Estate
/10
Population: 5,108
Median Home Price: $289,322
Population Change: -0.2%
Home Price Change: 2.3%
More on Lake City: Data | Crime | Cost Of Living | Real Estate
/10
Population: 5,350
Median Home Price: $188,019
Population Change: -0.2%
Home Price Change: 1.0%
More on Montevideo: Data | Crime | Cost Of Living | Real Estate
/10
Population: 5,352
Median Home Price: $309,576
Population Change: 0.4%
Home Price Change: 5.1%
More on La Crescent: Data | Crime | Cost Of Living | Real Estate
/10
Population: 5,576
Median Home Price: $414,242
Population Change: 1.4%
Home Price Change: -1.0%
More on Chisago City: Data | Cost Of Living | Real Estate
/10
Population: 5,193
Median Home Price: $876,362
Population Change: -0.2%
Home Price Change: 3.7%
More on North Oaks: Data | Cost Of Living | Real Estate
/10
Population: 5,094
Median Home Price: $187,428
Population Change: -1.8%
Home Price Change: 1.8%
More on Morris: Data | Crime | Cost Of Living | Real Estate
/10
Population: 5,497
Median Home Price: $293,855
Population Change: 0.1%
Home Price Change: 2.4%
More on St. Paul Park: Data | Crime | Cost Of Living | Real Estate
/10
Population: 5,656
Median Home Price: $477,934
Population Change: -3.1%
Home Price Change: 0.1%
More on Carver: Data | Cost Of Living | Real Estate
/10
Population: 5,712
Median Home Price: $231,977
Population Change: 0.1%
Home Price Change: 3.9%
More on Glencoe: Data | Crime | Cost Of Living | Real Estate
Methodology: How do you determine the best places to buy a home in Minnesota for 2024?
We were in real estate for almost five years and have worked on this site for another 9. Suffice it to say we’ve put a lot of thought into finding an excellent 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 using Saturday Night Science.
To do that, we looked at the most recent American Community Survey Census data for 2018-2022 and compared it to the previous vintage. 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:
- Home prices had to be within 20% of the state average (Much lower than that, and you get to some of the more dangerous places)
- Home prices increased in the last year, and
- Above 5,000 people (Bigger cities have more data points)
So of the 0 cities and towns in Minnesota, only 148 places made it through our initial filters to even be considered.
We then ranked each place from 1 to 148 for the above criteria, with 1 being the best. We averaged the rankings to create a “best place to buy” index, with the place having the lowest index being the best.
Turns out that Redwood Falls is the best potential gem in the not-so-rough in the North Star State.
Summary: The Best Places To Purchase A House In Minnesota for 2024
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.
The best cities to buy a house in Minnesota are Redwood Falls, Lake City, Montevideo, La Crescent, Chisago City, North Oaks, Morris, St. Paul Park, Carver, and Glencoe.
So if we’d could rent or buy in these cities, we’d definitely buy.
For more Minnesota reading, check out:
Best Places To Buy A Home In Minnesota
| Rank | City | Population | Median Home Price | Population Change | Home Price Increase |
|---|---|---|---|---|---|
| 1 | Redwood Falls | 5,091 | $149,029 | -0.2% | 0.5% |
| 2 | Lake City | 5,108 | $289,322 | -0.2% | 2.3% |
| 3 | Montevideo | 5,350 | $188,019 | -0.2% | 1.0% |
| 4 | La Crescent | 5,352 | $309,576 | 0.4% | 5.1% |
| 5 | Chisago City | 5,576 | $414,242 | 1.4% | -1.0% |
| 6 | North Oaks | 5,193 | $876,362 | -0.2% | 3.7% |
| 7 | Morris | 5,094 | $187,428 | -1.8% | 1.8% |
| 8 | St. Paul Park | 5,497 | $293,855 | 0.1% | 2.4% |
| 9 | Carver | 5,656 | $477,934 | -3.1% | 0.1% |
| 10 | Glencoe | 5,712 | $231,977 | 0.1% | 3.9% |
| 11 | Byron | 6,373 | $362,923 | 2.5% | 1.2% |
| 12 | Falcon Heights | 5,232 | $391,737 | -2.9% | 0.6% |
| 13 | Zimmerman | 6,243 | $305,646 | 2.2% | 1.0% |
| 14 | International Falls | 5,795 | $104,810 | -1.1% | 4.8% |
| 15 | Isanti | 6,850 | $316,531 | 2.7% | 1.0% |
| 16 | Corcoran | 6,549 | $556,085 | 3.7% | -0.3% |
| 17 | Stewartville | 6,684 | $304,105 | 1.0% | 1.6% |
| 18 | Delano | 6,539 | $415,697 | 2.4% | -1.2% |
| 19 | Dayton | 7,745 | $473,645 | 6.7% | -0.6% |
| 20 | Jordan | 6,648 | $421,455 | 1.3% | -0.6% |
| 21 | Kasson | 6,855 | $298,905 | 1.2% | 1.6% |
| 22 | Medina | 6,746 | $797,015 | 1.4% | 0.9% |
| 23 | Spring Lake Park | 6,966 | $299,120 | 0.7% | 2.4% |
| 24 | Litchfield | 6,598 | $224,619 | 0.9% | 1.4% |
| 25 | Belle Plaine | 7,363 | $337,852 | 1.0% | -0.2% |
| 26 | St. Joseph | 7,066 | $303,966 | 2.1% | 3.3% |
| 27 | Albertville | 7,883 | $357,047 | 1.2% | -0.5% |
| 28 | Crookston | 7,472 | $174,805 | -0.5% | 1.8% |
| 29 | Waite Park | 8,290 | $229,447 | 0.5% | 5.2% |
| 30 | St. Francis | 8,198 | $325,664 | 1.2% | 0.5% |
| 31 | Shorewood | 7,722 | $717,403 | -0.7% | 1.6% |
| 32 | Wyoming | 8,037 | $379,394 | 0.7% | 0.3% |
| 33 | Minnetrista | 8,347 | $660,620 | 1.6% | 0.1% |
| 34 | New Prague | 8,155 | $326,107 | 1.2% | 1.0% |
| 35 | Orono | 8,223 | $1,019,638 | -0.4% | 2.1% |
| 36 | Mahtomedi | 8,073 | $460,576 | 0.4% | 1.8% |
| 37 | Baxter | 8,668 | $334,916 | 1.5% | 2.2% |
| 38 | Virginia | 8,415 | $122,426 | -0.3% | 1.8% |
| 39 | East Grand Forks | 9,118 | $260,596 | -0.2% | 2.4% |
| 40 | Little Falls | 9,084 | $250,605 | 0.4% | 4.1% |
| 41 | Thief River Falls | 8,871 | $188,664 | 0.9% | -5.2% |
| 42 | Oak Grove | 8,956 | $431,853 | 1.0% | 1.5% |
| 43 | Waseca | 9,208 | $229,401 | -0.3% | 2.5% |
| 44 | Cambridge | 9,726 | $306,192 | 2.9% | 1.0% |
| 45 | St. Anthony | 9,332 | $377,784 | 2.0% | 0.7% |
| 46 | Lake Elmo | 11,861 | $616,212 | 5.6% | 0.9% |
| 47 | Detroit Lakes | 9,966 | $361,398 | 2.6% | 3.7% |
| 48 | Mound | 9,272 | $360,628 | -1.0% | 2.6% |
| 49 | Hermantown | 10,135 | $383,661 | 0.1% | 2.6% |
| 50 | Victoria | 10,681 | $552,013 | 3.1% | -0.6% |
| 51 | Fairmont | 10,411 | $155,351 | -0.5% | 0.1% |
| 52 | Arden Hills | 9,805 | $450,961 | -0.6% | 1.4% |
| 53 | Little Canada | 10,624 | $351,425 | -0.7% | 1.3% |
| 54 | North Branch | 10,968 | $332,334 | 2.1% | -1.1% |
| 55 | Big Lake | 11,857 | $351,813 | 2.1% | 0.5% |
| 56 | Grand Rapids | 11,158 | $234,222 | 0.9% | 2.9% |
| 57 | Mendota Heights | 11,642 | $515,905 | -0.3% | 0.6% |
| 58 | St. Peter | 12,039 | $272,777 | 2.9% | 2.0% |
| 59 | East Bethel | 11,901 | $378,957 | 0.7% | -0.2% |
| 60 | Cloquet | 12,559 | $225,901 | -0.0% | 7.5% |
| 61 | Waconia | 12,993 | $436,466 | 1.7% | -0.4% |
| 62 | North St. Paul | 12,465 | $304,655 | 0.6% | 0.5% |
| 63 | Worthington | 13,838 | $209,517 | 0.4% | 2.9% |
| 64 | Rogers | 13,283 | $441,756 | 0.8% | 0.7% |
| 65 | Mounds View | 13,100 | $322,091 | -0.7% | 1.5% |
| 66 | New Ulm | 14,055 | $215,828 | 0.0% | 1.1% |
| 67 | Brainerd | 14,412 | $283,659 | 2.6% | 3.6% |
| 68 | Vadnais Heights | 12,864 | $354,501 | -0.5% | 1.4% |
| 69 | Marshall | 13,647 | $221,674 | -0.6% | 2.1% |
| 70 | Monticello | 14,447 | $310,024 | 1.5% | 1.0% |
| 71 | Alexandria | 14,400 | $257,770 | 2.6% | 3.6% |
| 72 | Fergus Falls | 14,108 | $183,271 | 1.0% | 0.4% |
| 73 | North Mankato | 14,238 | $285,195 | -0.8% | 4.3% |
| 74 | Sauk Rapids | 13,830 | $275,189 | 0.0% | 3.3% |
| 75 | Hutchinson | 14,588 | $275,891 | 0.6% | 5.8% |
| 76 | Robbinsdale | 14,452 | $296,059 | -0.5% | 1.4% |
| 77 | Hugo | 15,831 | $413,867 | 1.9% | 1.5% |
| 78 | Bemidji | 15,441 | $201,734 | 2.2% | 4.6% |
| 79 | Hibbing | 16,167 | $142,670 | -0.4% | 6.0% |
| 80 | Red Wing | 16,627 | $270,582 | 0.2% | 2.4% |
| 81 | Buffalo | 16,288 | $354,423 | 1.0% | 0.4% |
| 82 | Ham Lake | 16,489 | $463,556 | 0.6% | 0.7% |
| 83 | Otsego | 20,455 | $395,838 | 4.5% | 0.3% |
| 84 | Anoka | 17,892 | $308,373 | 0.8% | 0.6% |
| 85 | Albert Lea | 18,434 | $145,782 | 0.0% | 7.0% |
| 86 | St. Michael | 18,648 | $410,822 | 2.8% | 1.0% |
| 87 | Hopkins | 18,752 | $317,062 | -0.6% | 3.6% |
| 88 | Sartell | 19,382 | $315,131 | 1.5% | 2.7% |
| 89 | Stillwater | 19,316 | $417,520 | 0.4% | 1.0% |
| 90 | Willmar | 21,006 | $219,141 | 0.9% | 3.6% |
| 91 | West St. Paul | 20,820 | $296,144 | 1.7% | 1.7% |
| 92 | South St. Paul | 20,598 | $280,795 | -0.2% | 1.8% |
| 93 | Columbia Heights | 21,822 | $280,659 | 1.0% | 2.1% |
| 94 | Forest Lake | 20,553 | $387,584 | 0.9% | 0.8% |
| 95 | Northfield | 20,518 | $358,052 | 0.7% | 1.8% |
| 96 | New Hope | 21,620 | $328,822 | -0.3% | 0.8% |
| 97 | Golden Valley | 22,142 | $409,489 | -0.5% | 1.5% |
| 98 | Lino Lakes | 21,525 | $422,847 | 1.6% | 0.2% |
| 99 | New Brighton | 23,141 | $362,922 | -0.7% | 1.4% |
| 100 | Hastings | 22,063 | $313,784 | 0.0% | 1.8% |
