Minnesota the Land of 10,000 Lakes is a great state to purchase a house. Affordable and economical housing is not impossible if you look in the right place. Qualified buyers are able to buy their dream homes for a low cost with a minimum down payment of 3%. The North Star State offers great mortgage and downpayment loan programs for first-time homebuyers. Property Records of Minnesota created a 2022-23 list of the cheapest cities where you can buy a home.
1. Montevideo, MN
Montevideo is a small city in Minnesota in Chippewa County with one of the cheapest real estate in the state, with a population of over 5,290 residents as of 2022. The city has one of the largest populations of Norwegians outside of Norway. The average home price is about $147,000 for a two-bedroom which is 5.5% under the list price.
2. Hibbing, MN
Hibbing is a small town in Saint Louis County with a population of over 16,000 residents. The median home price of $145,000 gives homebuyers the opportunity to buy an affordable home with a low monthly payment. Hibbing is a great place to buy a low-priced home since the majority of houses have a good size front and backyard. This is a great town for couples who plan on starting a family in the future and plan on buying real estate for the cheapest price with good value.
3. Kasson, MN
Kasson is a small city located in the middle of Dodge County with an elevation of 1,253 and a population of over 6,930 residents as of 2021. This cozy city is a great and affordable city where most of the residents own their homes. Even though the city might be small it packs a great punch with activities for families like a historic museum, park, theatre, and restaurants. The median home price is $169,000 and up.
4. Stewartville, MN
Stewartville is a city 15 minutes away from Rochester, Minnesota with a growing population of over 6,750 residents. Located in Olmsted County the city offers great school districts, parks, restaurants, and upcoming housing developments and one of the cheapest real estate in the state. Stewartville gets all four seasons but it does get really cold in the wintertime. Just like Kasson, Stewartville has a median listing home price of $169,000 which is reasonably low-price.
5. St. Paul Park, MN
St. Paul Park is a small city in Washington County that was established in the late 1880s with a population of over 5,480 residents as of 2021. If you like parks this is the city for you. St. Paul Park has over 200 small and large parks. With a median home price of $165,000, St. Paul Park makes buying a house easy to afford.
6. Owatonna, MN
Owatonna is one of Minnesota’s cheapest cities to live in. Located in Steele County and an hour away from Minneapolis. The city has a population of over 26,390 residents as of 2021 with a 1,152′ elevation. Not only is the area ranked among the most livable small cities it’s also economical compared to other cities. The median listing home price is $281,000.
7. St. Joseph, MN
Saint Joseph is located in Stearns County and it offers residents a suburban feel with low crime. It is home to the College of Saint Benedict and a women’s University. Any time a neighborhood has a school in the neighborhood you will see an increase in property value sooner. St. Joseph has a population of over 6,930 residents as of 2021. The median income is an average of $25,400 and the median home price is $271,000.
8. New Ulm, MN
If you are looking for the cheapest real estate money can buy you are in the right place. New Ulm is located 1.5 hours away from Minneapolis with low-priced homes. The city has a great small-town feel but is not too far from the big city. New Ulm is the home of Martin Luther College, a private college that was established in 1995. With a population of over 14,090 residents, this city is affordable and safe for families of all sizes. The median house price is $168,500 according to Realtor.com. First-time homebuyers should take a look into buying affordable and economical homes in New Ulm, this city will help you save a few bucks.
9. North Branch, MN
North Branch, Minnesota is a city 40 minutes away from Minneapolis. In the past few years, home value has gone up making this city a great location to invest in. The median real estate price is $335,842 as of 2022 according to Zillow. Located in Chisago County on Interstate 35, North Branch, is a suburban area that recently was approved for twin-home and single-family residential development.
10. International Falls, MN
International Falls is located in Koochiching County right next to the Canadian border. The city goes by the nickname “Icebox of the Nation” due to having the lowest inter temperatures in the contiguous 48 states. The Couchiching Falls are a big reason why tourists go to International Falls. The main home price as of 2022 is $102,093. From cheap to cheapest International Falls has it all. Home prices keep increasing in this area due to somewhat high demand.
