Skip to content
  1. North Dakota
  2. Home Buying

Home Buying in North Dakota

Bismark City North Dakota

North Dakota is nicknamed "The Peace Garden State," paying homage to the International Peace Garden that straddles the state's border with Manitoba, Canada. It has also earned a reputation as one of America's Top five happiest states, the best state for families, the state with the happiest employees, and the best state for a healthy work-life balance. As a result, the state has been experiencing steady growth in housing demand. Known for its vast prairies, natural beauty, and tight-knit communities, North Dakota offers a serene environment for homebuyers looking to escape the bustle of larger cities.

Despite its appeal, North Dakota has recently faced housing challenges. In areas where a burgeoning oil and gas industry has driven population growth, housing supply has struggled to keep up, particularly in western cities like Williston and Dickinson.

However, the market remains more stable in more established cities such as Fargo and Grand Forks, offering a range of homes at relatively affordable prices compared to the national average. Still, the median home price in North Dakota, around $275,000, is significantly lower than the national average and lower than neighboring Minnesota, Montana, and South Dakota.

North Dakota's housing market is considered a seller's market thanks to low inventory and high demand. However, in some areas of the state, like Bismarck, the real estate market favors buyers as inventory exceeds demand. Across the state, homes typically stay on the market for around 45 days before they sell. It remains one of the nation's fastest-growing states, with homebuyers drawn to its strong job market and affordability, particularly in its western regions.

Whether you're drawn to growing urban centers like Fargo or the tranquility of Bismarck's neighborhoods, North Dakota has various living options to suit different lifestyles. For those considering buying a home in the state, it's essential to research and understand the unique market conditions and local factors that could impact your decision. You'll also want to determine your housing needs and budget, factoring in crucial costs like property taxes. A licensed real estate agent can also help you in this endeavor.

Current North Dakota Housing Trends

Examining current housing trends can help you understand North Dakota's housing market and prepare to buy a home there.

Here are some key metrics:

  • Median Home Price

    Although the median home price in North Dakota, approximately $275,000, is less than the national average, it can vary significantly across the state. In highly desirable real estate markets, like those in Bismarck and Williston, median home prices have reached more than $365,000, which is still less than the national average, attracting attention from homebuyers seeking refuge from more expensive and congested states.

  • Number of Homes Sold

    In North Dakota, 500 homes are sold on average every month, and while that number may seem low compared to other states, the housing market is much smaller in scale, and the number of homes sold in the state indicates a very active market. While cities like Fargo and Bismarck account for many of these sales, the oil boom has boosted real estate activity in western parts of the state.

  • Median Days on Market

    The median Days on Market (DOM) in North Dakota is approximately 45 days, although this figure varies, particularly between the state's urban and rural areas. In Fargo, homes often sell more quickly, averaging around 30 days on the market, while rural areas or regions further west tend to see longer listing times, with properties staying on the market for up to 60 days. Competitive markets like Bismarck are experiencing faster sales, especially for mid-range single-family homes.

  • Supply Statistics

    North Dakota continues to grapple with a housing shortage. This is especially true in the western part of the state, where there is an energy boom. In Williston, for example, there has been a rapid influx of workers, significantly increasing demand and decimating supply. Through the North Dakota Housing Initiative, the state has encouraged new construction to meet its housing needs, offering incentives for builders in affected regions. The housing market may be more balanced in places like Fargo and Bismarck, but continued population growth could also create future shortages.

How to Find the Right Home to Buy in North Dakota

How to Find the Right Home to Buy in North Dakota

When it comes to home buying in North Dakota, prospective buyers must partner with a local realtor. A local real estate agent has the knowledge and experience to help you navigate the state's housing market. Your real estate agent will help you find the home of your dreams by working with you to understand your goals, aspirations, financial stability, and lifestyle choices. Contact family and friends for referrals if you have trouble finding the right real estate agent.

Finding the Right Home

Finding the right home in North Dakota requires careful consideration of several key factors, including location, the type of home you choose to purchase, and the cost associated with making this type of major investment, and that includes how much you should expect to pay in taxes.

Location

Location is one of the most important considerations for homebuyers in North Dakota. From the vibrant, urban lifestyle of Fargo and Bismarck to the tranquility of the open prairies found in Minot, Dickinson, and Williston, homebuyers must consider each market's advantages and disadvantages.

  • Urban vs. suburban vs. rural: Fargo offers a lively urban experience with access to jobs, restaurants, and entertainment, making it ideal for professionals and families. Suburban areas around Bismarck and Grand Forks provide a quieter lifestyle, more space, and access to outdoor activities. With its wide-open spaces and agricultural communities, Rural North Dakota offers peace and affordability for those looking to escape city life.
  • Proximity to Work: North Dakota's job market is concentrated in cities like Fargo, Bismarck, and Williston, particularly for those working in the energy, healthcare, and education centers. If a short commute is not a primary concern for you and your family, you may want to live in a more rural area, where land and homes are usually more affordable.
  • Public Transportation: There are public transportation options throughout North Dakota, including The Cities Area Transit (CAT) bus system serving the Grand Forks region and the MATBUS serving the Fargo region. However, public transportation is limited throughout most of the state. ND Statewide Transit provides approximately 32 bus programs for anyone who needs a ride in rural North Dakota. Most residents rely on cars for their daily commutes, making proximity to major highways and roads an important consideration for homebuyers.
  • Property Taxes: North Dakota has a relatively low tax rate of approximately 1.05%. However, property taxes in the state often vary by county, with some rural areas having lower rates than more urban regions.

Types of Homes in North Dakota

North Dakota offers a variety of options for homebuyers, each catering to different needs and preferences.

  • Single-Family Homes: Single-family homes can be found throughout North Dakota, but they are especially popular in the suburbs of Fargo and Bismarck. They typically offer plenty of yard space, significant privacy, and comfort, making them ideal for families. However, single-family homes come with responsibilities and costs that every prospective buyer should consider before taking the plunge.
  • Condominiums and townhomes: Condos and townhomes are less common in North Dakota than in other states, but they can still be found in urban areas. Condos offer a low-maintenance lifestyle, with shared amenities such as gyms and pools. However, condo fees and restrictions are something to consider. Townhomes provide more space than a condominium with fewer maintenance responsibilities than a traditional single-family home.
  • Manufactured and Modular Homes: In North Dakota, especially in rural areas, manufactured and modular homes are a popular and affordable option. They provide many benefits of a traditional home, but often at a significantly lower price point.
  • Luxury Homes: North Dakota has no shortage of high-end living options. In cities like Fargo and Bismarck, luxury properties are plentiful and for sale, with homes featuring modern designs and large spaces in prime locations.

The Typical Home Buying Process in North Dakota

Buying a home in North Dakota generally involves several steps:

  • Obtain a prequalification letter.
  • Work with a local real estate agent.
  • Make an offer on a home.
  • Schedule a home inspection.
  • Close on the home.

Financing Your Home Purchase in North Dakota

Financing Your Home Purchase in North Dakota

North Dakota offers various financing options for homebuyers, from traditional mortgages to government-backed loans.

Traditional Mortgages

In North Dakota, homebuyers can choose from two types of traditional mortgage options:

  • Fixed-Rate Mortgages: A fixed-rate mortgage is a top choice for North Dakota homebuyers who plan to stay in the home for a significant amount of time. It delivers the predictability of fixed monthly payments and an interest rate that remains consistent throughout the life of the loan.
  • Adjustable-Rate Mortgages (ARMs): ARMs can offer homebuyers a short-term savings option, particularly for initial monthly payments, but they come with more risk. That's because the interest rate on an ARM is periodically adjusted based on market conditions. It is a good option for those planning to sell or refinance in the short term and in instances where rates are expected to drop.

Most North Dakota homebuyers rely on Wells Fargo, U.S. Bank, and Gate City Bank for home loans. Local lender First International Bank & Trust is also popular among North Dakota borrowers for its personalized service, flexible mortgage options, and community-focused programs, particularly for first-time homebuyers and those in rural areas of the state.

Government-Backed Loans

Homebuyers in North Dakota can also qualify for government-backed home loans if they qualify, including:

Down Payment Assistance Programs in North Dakota

The NDHFA offers down payment and closing cost assistance to qualified buyers through its DCA and Start programs. North Dakota counties and cities may also have down payment assistance initiatives, so it is important to check with the local housing authority.

Home Insurance in North Dakota

Home Insurance in North Dakota

The average annual cost of home insurance in North Dakota is between $2,000 and $2,500, higher than the national average. Rates are typically highest in areas prone to flooding or severe winter storms. While not required by law, home insurance in North Dakota is strongly recommended and often required by lenders.

Home Buying Challenges

While North Dakota's housing market offers affordability, it is not without its challenges, including:

  • Rising home prices: In cities like Fargo and Bismarck, prices have risen due to increased demand.
  • Limited inventory: The housing supply in some parts of the state is limited, particularly in oil-rich western areas.
  • Seasonal markets: North Dakota's real estate market fluctuates with the seasons, with home sales slowing in the state's brutal winter months.

Navigating Your North Dakota Home-Buying Journey

Buying a home in North Dakota offers both opportunities and challenges, making it essential for prospective homebuyers to be well-prepared. With a strong job market, relatively affordable housing, and diverse lifestyle options ranging from bustling urban centers to serene rural landscapes, North Dakota is attractive to homebuyers. However, buyers must navigate the complexities of a competitive seller's market, particularly in high-demand areas. Rising home prices and limited inventory in some regions may pose challenges, especially for first-time buyers.

Careful planning is crucial to successfully navigating the North Dakota home-buying process. From researching local housing trends to partnering with an experienced realtor, buyers should be fully informed about the market conditions and financial options. No matter what home you choose, it's important to weigh factors like proximity to work, access to public transportation, and property taxes to make an informed decision.

Ultimately, the state's growing housing market offers great potential for homebuyers. You can find your dream home in North Dakota with the right guidance and resources.

Instant Access to North Dakota Property Records

Home Buying Guide

Instant Access to North Dakota Property Records

  • Owner(s)
  • Deed Records
  • Loans & Liens
  • Values
  • Taxes
  • Building Permits
  • Purchase History
  • Property Details
  • And More!

Instant Access to North Dakota Property Records

  • Owner(s)
  • Deed Records
  • Loans & Liens
  • Values
  • Taxes
  • Building Permits
  • Purchase History
  • Property Details
  • And More!

Instant Access to North Dakota Property Records

Home Buying Guide

North Dakota Property Resources