Price of ND homes continues to increase; inventory problem likely not to change

Published: May. 24, 2023 at 8:19 PM CDT
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BISMARCK, N.D. (KFYR) - Last year, inflation rose to a 40-year high of 9.1%. Now, it’s still high at 4.9%, and that’s reflected in the North Dakota housing market.

According to the North Dakota Housing Finance Agency, the demand for homes that cost $300,000 or less far exceeds their availability. They say it’s not unique to North Dakota, it’s a problem that can be seen throughout the rest of the country as well. And they don’t see it changing anytime in the near future.

“We’ve got the inventory problem. I don’t see that changing a whole lot in the future, because those that bought in the last few years at 2.5%, 3% probably don’t want to give up that rate. So, those buyers we want to see move up into their second, third, fourth home to free up for those first-time home buyers, probably are going to stay put for a few years,” said Brandon Dettlaff, home ownership division director at ND Housing Finance Agency.

The most recent data from the North Dakota Housing Finance Agency shows the average price of a home in North Dakota increased by $85,000 from 2012 to 2021.