10 Most Affordable Housing Markets in Minnesota

Minnesota residents – and those looking to relocate – will be pleased to know that the state offers extreme value for homebuyers.

Many markets are within commuting distance of Minneapolis-St. Paul, the third most populous metro area in the Midwest. Yet, the price tag for homes isn’t what you’d expect for a major city.

Other areas are solidly suburban or rural, giving future homebuyers options.

If you’re tired of big-city home prices, try house shopping in one of these Minnesota gems.

1. Austin
2. Winona
3. Willmar
4. Saint Cloud
5. Duluth
6. Moorhead
7. Owatonna
8. Brooklyn Center
9. Faribault
10. Brainerd

1. Austin

*Payments mentioned do not include taxes, insurance, or HOA dues. Example purposes only. Not a commitment to lend.

No, not that Austin. While the Texas city’s typical home price is north of $500,000, Austin, Minnesota homes are available in the mid-$100s. According to Explore Minnesota, the town is home to 28 city parks, 60 restaurants, and don’t forget the SPAM® Museum. As you might imagine, a major employer in the area is Hormel, inventor of the meat product.

2. Winona

If you guessed that actress Winona Ryder was named after this town, you would be right. She was born in nearby Olmsted County. But trivia aside, the town offers live music, a marine art museum featuring water-inspired art, and plenty of outdoor fun for residents, famous or not.

3. Willmar

This town offers outdoor activities like the Glacial Lakes Trail, a 40-mile biking trail, plus job opportunities in agriculture, manufacturing, retail, and healthcare. Homebuyers meeting USDA eligibility criteria can purchase a home with zero down payment anywhere in and around the town since USDA defines this area as rural.

4. Saint Cloud

Minnesota’s 12th largest city, Saint Cloud offers much lower prices than most U.S. cities this size. At just under 70,000 in population, the city offers a more diverse employment picture than smaller towns, giving homebuyers a solid opportunity to afford living here.

5. Duluth

On the shores of Lake Superior, Duluth offers water sports, hiking, skiing, a railroad museum, and so much more, according to visitduluth.com. And with a population north of 80,000, this is no backwater town. Expect a thriving economy and good earning potential with a median income of over $63,000; that's lower than the $75,000 U.S. average, but high considering how affordable it is here.

6. Moorhead

Just across the Red River from Fargo, North Dakota, Moorhead is an alternative for commuters to the larger city.

7. Owatonna

An hour south of Minneapolis, Owatonna provides economic opportunities, as major corporations such as Federated Insurance and Viracon call it home. But the town isn’t all about work. The historic section of downtown is a major attraction: it aims to show visitors what the area was like in the early 1900s.

8. Brooklyn Center

A suburb of Minneapolis, this town offers a short commute to a large city and outdoor attractions such as kayaking on the Mississippi River, golf, and 120 miles of trails.

9. Faribault

In southern Minnesota, Faribault is about one hour from the Twin Cities. This town of around 23,000 provides easy access to the larger metropolitan area while offering a small-town feel.

10. Brainerd

Known as “Minnesota’s Playground,” Brainerd has a bit of everything. From amusement parks to fishing, hunting, shopping, and golf, homeowners in this central Minnesota town won't be bored.

Get pre-approved for your Minnesota home

Many towns and cities across Minnesota are affordable for just about any budget. See what home price you qualify for by requesting your pre-approval from a reputable lender.

Methodology

To find the 10 most affordable housing markets in Minnesota, we started with typical home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for November 2023. We assumed a 5% down payment, the typical requirement for first-time buyers. We then calculated the monthly payment on a 30-year fixed mortgage using a 6.845% rate, the average rate at the time of data collection as published on Optimal Blue Mortgage Market Indices for a buyer with less than 20% down and a 700 FICO score. We added PMI costs per rates from mortgage insurance provider MGIC. The stated mortgage payment does not include homeowner’s insurance, property taxes, or HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population in the U.S. per Zillow’s report.