North Dakota is the 39th state added to the United States in 1889. The state is 70,698 square miles, 19th largest in the country, and located along the United States and Canadian border. North Dakota’s nicknames include the Peace Garden State, the Roughrider State, and the Flickertail State. The landscape is a diverse mixture of prairies, buttes, and grasslands covering such regions as the Great Plains, the Badlands, and the Missouri Plateau. Let’s examine this land of sweeping visages along with the 2016 North Dakota real estate market in greater depth.
The Missouri River runs through the south western part of the state. Agriculture is the largest industry but followed by natural gas, lignite coal, and crude oil. The crude oil industry has become a major economic resource thanks to the Bakken formation which led to an oil boom in North Dakota. Their GDP has seen an increase of 8.3 percent. The most recent population number is 672,591, making it the 47th state by population. Major employers within the state are, beginning with the largest, Liberty Tax Service, North Dakota State University Fargo, the next three are all part of Altru Health System (4th being Audiology and 5th being Outreach Therapy). As of July 2016, the unemployment rate was 3.1 percent, significantly lower than the national rate of 4.9 percent.
A population growth of 12.5 percent between 2010 and 2015 has led to a very healthy 2016 Housing Market. North Dakota received a 10 out of 10 rating from Zillow. Housing market predictions expect an increase of 1.80 percent. However, the appreciation rate is one of the lowest in the country, well below the United States average of 4.50 percent. The average sale price for a home in the North Dakota real estate is $214,601. The rent index is $1464, slightly higher than the national index of $1412. Zillow lists 714 rental properties currently available on the real estate market.
Influencing Factors for the 2016 North Dakota Real Estate Market
• The North Dakota real estate median home value is $200,400, a 4.9 percent increase over the previous year (2015) and predicted to continue increasing over the next year at 4.7 percent.
• The foreclosure rate is 0.45 percent, well below the United States average of 1.10 percent. The percentage in North Dakota is up 1.85 percent from 2015.
• Rental prices have experienced a slight increase since the beginning of 2016
• The current APR is at its average for 2016 of 3.31 percent. The APR has ranged between 3.16 and 3.62 percent. The national average is 3.29 percent.
Best Places to Live in North Dakota
The capital of North Dakota is Bismarck. It is the second largest city in the state with a population of 62,272. In 2015, Forbes listed Bismarck as the 7th fastest growing small city. Approximately three quarters of the population (73 percent) own their homes, of those homeowners 36 percent are single and the median age is 39 years. Bismarck real estate lists the median list price as $213,000 and the average list price as $322,291. Zillow Bismarck ranks the market as healthy with a 7.4 out of 10 and a current home value of $266,900. That is a 3.3 percent increase over last year (2015); the future prediction expects even higher numbers with a continued increase of 6.9 percent over the next twelve months. The city’s foreclosure rate is 0.27 percent, below the state rate of 0.45 percent but a 3.49 percent increase over last year. Craigslist Bismarck has homes listed for sale as low as $40,000 for a small two-bedroom home while Trulia has a six-bedroom house at the opposite end of the spectrum for 1.75 million dollars. Craigslist also has rental properties beginning with a one-bedroom loft for $485 per month up to a five-bedroom house for $2500 per month. Zillow’s rent index $1601 which is almost equal to the median rental price of $1600. Rental prices saw a slight dip at the beginning of 2016 but have since returned to numbers similar to the same time last year (2015).
Fargo is the largest city in North Dakota with a population of 105,549. It is home to the North Dakota State University. The city has taken great measures to maintain and/or improve itself. Private developers have joined the city in financial efforts to prevent blight and make it a desirable place to live. The program has not only revitalized the city but also prevented decline. At 49 percent, almost half of residents own their homes, 49 percent are single, and the average age is 35 years. As far as Fargo real estate, the current home value is $204,800: 5.9 percent higher than last year and predicted to continue to increase at 2.5 percent. The market is very healthy with a rating of 9.7 out of 10 from Zillow. The median list price is $259,000 and the average list price is $281,093. A three-bedroom mobile home starts for less than $30,000 while a traditional single family home with anywhere from one- to four-bedrooms sells for a minimum of $70,000. A five- or six-bedroom home may cost over one million dollars, the highest listing presently is a six-bedroom home for 2.5 million dollars. Eighty-four properties are listed in some stage of foreclosure, 50 percent fewer than 2015. The rent index according to Zillow is $1355, down slightly since the end of 2015, and the median rent is $1337. Rent for a studio or one-bedroom apartment starts around $500 per month and a six-bedroom house can be rented for less than $3000 per month.
The third largest city in North Dakota is Grand Forks with a population of 52,838 residents. It is home to the oldest institute of higher education in the state – the University of North Dakota. The top two employers in the city, each with just over 4000 employees, are the U.S. military and the healthcare industry. Fifty-five percent of residents own their homes, 43 percent are single, and the median age is 33 years. Information from Realtor.com states the median list price as $209,000 and the average list price as $225,314. Zillow’s current home value is $189,600; this number reflects a 7.3 percent increase from the previous year (2015). According to statistics from Grand Forks real estate, a mobile or manufactured home typically sells within the range of $10,000 to $30,000. A traditional single family home with two-bedrooms begins in the vicinity of $70,000. Larger homes with four- to seven-bedrooms reaches a maximum price around $750,000. HUD homes lists 83 foreclosed properties for sale. The median rental price is $1200 per month, and Zillow’s rent index is $1384 per month. A one-bedroom apartment rents for about $500 while rent for a three-bedroom house reaches a maximum of about $1800.
Williston, ND has 14,716 residents making it the 9th largest city in the state. Williston is most important to the state economy because it is the home of the Williston Basin, part of the Bakken Formation where oil and coal deposits are located. Eighty-one percent of residents own their homes, of those 35 percent are single. At 42 years, the median age is slightly higher than most other cities in the state. The Williston real estate market has an average list price of $236,099 and a median list price of $210,000. One- to three-bedroom homes start for less than $90,000 and can cost over $400,000 for a four- to six-bedroom home. While there is little information regarding foreclosures, HUD Homes has 35 foreclosure properties listed for sale. The median rent is $1150. A two-bedroom apartment rents for approximately $700 while a seven-bedroom house rents for $2400. The majority of two- to three-bedroom rentals cost between $1500 and $2000 per month.
Dickinson, North Dakota is home to Dickinson State University. As of 2015, the estimated population was 23,765. Seventy-one percent of residents own their homes, 35 percent are single, and the median age is 39 years. Dickinson real estate is fairly small with a limited number of listings. The average list price for a home is $259,668 and the median list price is $228,000. A two- or three-bedroom home sells for $85,000 to $90,000 and four- to five-bedroom homes can sell in excess of $500,000. Nine homes were listed in foreclosure on HUD Homes website. The median rental price is $1097. A one- or two-bedroom apartment rents for anywhere from $300 to $500 per month while a four-bedroom home rents between $1750 and $2000 per month.