In 2022, the housing market in North Dakota is poised to improve thanks to a rise in household income combined with an increase in home sales. This is according to the state’s real estate regulators and market experts. In the next decade, North Dakota has seen significant investment in its housing market, spurred by the federal government’s affordable housing program. The result is that property values and rental rates have risen, allowing first-time home buyers to enter the market with confidence.
Since the start of this decade, the unemployment rate in North Dakota has dropped to 3.7%, the lowest since 2008. Part of the decline is due to the increasing number of jobs within the state, particularly in the oilfield sector. The state’s population is also increasing, which has led to more people looking for property to buy or rent. With more people looking to buy or rent property, demand for mortgages and loans has increased, too.
These trends have led to a rise in home ownership in North Dakota real estate. In fact, in 2022 there were 300,000 homes listed for sale in the state, which makes it the most popular destination for real estate purchases in the country. The state has an active real estate market, with buyers having the ability to walk away with a property after making just a few offers. In the first quarter of 2022, there were 10 sales per day on average.
If you are considering a real estate purchase or investment in the state, it is worth considering these emerging trends. A residential property purchase in North Dakota can be a lucrative venture, especially if you are buying in a hot neighborhood and can sell for a profit in the future.
Why Buy A House In North Dakota?
The main driver of the North Dakota real estate market is the increasing demand for affordable housing. The U.S. Department of Housing and Urban Development’s (HUD) public housing program, for example, provides low-income households with the opportunity to purchase a home in one of the state’s many low-density neighborhoods. This is in contrast to most other states, which offer their residents the opportunity to purchase a new home through a state-based mortgage loan program. The result is that federal dollars are fueling the rise in home prices and property values in North Dakota.
Additionally, there are a number of large companies that have set up offices in the state, including Google, which has its North Plains headquarters in Grand Forks. The company, along with a number of other technology firms, have set up shop in North Dakota in order to take full advantage of the state’s generous financial incentives. These incentives range from lower corporation taxes to exemption from property taxes. The state also offers qualified business income (QBI) tax credits, which provide a 15% deduction for qualified business income (QBI). In some instances, a 30% deduction is available.
Property Taxes And Maintenance
One of the primary concerns when buying real estate is the cost of upkeep and property taxes. In most states, homeowners must pay for property taxes annually, with some cities and townships imposing special assessments for certain types of development. In North Dakota, however, the property tax is only assessed on a portion of every parcel of real estate (about 10%), with the rest being subject to a special assessment for schools, hospitals, and other public facilities. In the city of Fargo, for example, the city charges a special tax rate of $26 per $1,000 of assessed value for new construction or substantial renovations. The city also levies a yearly tax on all properties, with some exemptions for senior homeowners and those who live in a single-family home.
The state of North Dakota also offers direct-to-home marketing platforms like websites and apps that allow buyers to compare mortgage rates and find out more about their new home purchase.
These online marketplaces make the process of finding the perfect mortgage or investment property much easier, as well as providing a larger audience of potential buyers.
Whether you are looking to make an investment or a permanent move, determining the value of your property is the first step towards a successful purchase. An experienced real estate agent can guide you through the process and ensure that your interests are protected at every stage.