Building Costs Per Square Foot in the State of Minnesota, USA

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Minnesota 11473_313th Avenue NW Princeton MN55371 - 4 Beds and 3 Baths with 4 Attached Garages on Gross Floor Area 3,143 sqft - Built in 2022 - Price $599,900 (3)

Newly Built House in Minnesota 11473_313th Avenue NW Princeton MN55371 – 4 Beds and 3 Baths with 4 Attached Garages on Gross Floor Area 3,143 sqft – Built in 2022 – Price $599,900 (3)

Residential Construction Market Analysis in the State of Minnesota, USA

Building costs are 1% below the national average in the state of Minnesota, and equivalent to the states of New Hampshire, Pennsylvania, South Carolina and Wyoming.  The real estate market always seems to be on fire, or everyone you know has been saying “now is not a good time to buy” every year for the last decade. In any case, the ideal thing to do is to listen to the experts and let the facts speak. That is why we are preparing this article where we will address the residential construction market in the state of Minnesota, USA. This may interest you whether you are an investor looking to see how the state is doing, or if you are looking to move your family here.

Minnesota Construction Outlook

Minnesota, also known as The North Star State, is one of the most beautiful states in the entire country (and coldest too!). Few states preserve their nature as Minnesota does, protecting each of its lakes, forests, and rivers. This level of protection of nature can make it seem like it is impossible to build here, or that they will never let you build a building, but instead it is not.

If you go to the city of Saint paul then you will come across a few buildings. Of course, do not expect to see the New York skyline, but this does not make the buildings worse or less modern, they are simply lower or with fewer floors.

Each residential construction in this state should contemplate having some type of material that insulates against the cold but also allows ventilation in summer. As it has a temperate climate, the winters are very cold and the summers very hot. The air currents are very cold throughout the year, which you can take advantage of during the summer if you have good windows, although make sure they close well during the winter. Prefabricated wooden houses are not usually ideal in this state since they are not cozy enough for the climate that is experienced throughout the year.

Minnesota Housing Market Analysis and Forecast

The real estate market here in Minnesota is quite competitive. Houses that are well priced and in excellent condition usually receive several offers. In these cases, the buyers offer more money, so the sellers know that they must offer the best terms in the contract to get them to accept the offer. This makes it a competitive but fruitful market with many chances of getting a good property at a reasonable price.

One disadvantage of the market in Minnesota is that this 2022 began a trend where properties take time to sell. There are currently 10,380 residential properties listed, and an average property can take 1-2 months to sell. This means that if you are looking to buy a property, this is the ideal time to do it: knowing that there is a large amount on offer, they are likely to be open to lower prices if you negotiate.

Contrary to what you might think, although Minneapolis and Saint Paul are the cities where more people live, and they have all the luxuries of big cities, this does not mean that they are the best places to invest or buy a home to live. . If you’re looking for a place to live, you’ll want to look in the suburbs like Duluth or Rochester, which have neighborhoods that are perfect for families. The same applies if you are looking to invest in houses, now if you want to invest in buildings then Minneapolis continues to be the best option as there is a higher demand.

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The prices of houses or properties, in general, are much cheaper if you move away from the urban centers, and they are generally better neighbors, so it is a win-win situation.

Minnesota Average House Price (Median Home Price)

The average value of a median home in Minnesota prepared to accommodate a family of 4 to 6 people, starts at $311,000. You can find some cheaper properties in some smaller cities or towns in Minnesota, and you can also find more expensive luxury homes. One place you should avoid is Bloomington, as much as you see cheap properties, this town has been last in the ranking of Minnesota cities for years, so if you invest it is likely that it will cost you to earn or recover your investment, and it is also not the ideal place for a family to live.

Remember that an average house has 3 bedrooms, two bathrooms, a kitchen, a living room, a garage, and a small garden. Its prices vary mainly depending on the materials used and the place where it is located. The average price usually goes up to $400,000 if the property is close to a school, or hospital, among other public service institutions.

Proposed Residential Building Projects in Minnesota

It’s currently a seller’s market in Minnesota, so there are sadly no ambitious projects happening beyond the big cities. If there are many real estate projects of residential houses designed for families to live in. There is a great tendency to build luxury houses in the towns that escape the big cities, these houses are usually large and are modern constructions.

Some buildings, mainly hotels, are being built in the Twin Cities of Minnesota. In fact, construction began last year on the first 5-star hotel in all of Minnesota. Several condominiums are also being built to house as many families as possible.

Real estate projects in Minnesota are usually quite modest, which does not mean that you cannot go further and bring luxurious buildings or buildings with a much more modern style. It all depends on the investors. Fortunately, with property prices falling, it’s likely that buying cheaper land will lead people to build more daringly, giving us a glimpse of a renewed Minnesota.

Newly Built House in Minnesota 4327 Hillside Drive, Hamel, MN55340 – 4 Beds and 5 Baths with 4 Attached Garages on Gross Floor Area 4,972 sqft – Built in 2022 – Price $1,200,000

Building Costs Per Square Foot for Single Family Homes in the State of Minnesota, USA

Building costs are 1% below the national average in the state of Minnesota, and equivalent to the states of New Hampshire, Pennsylvania, South Carolina and Wyoming.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Minnesota ranges from $341.44 to $523.41 per sqft, with the average being $402.95 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

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Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Minnesota ranges from $207.51 to $318.09 per sqft, with the average being $244.89 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Minnesota ranges from $134.15 to $203.75 per sqft, with the average being $157.06 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Minnesota ranges from $97.90 to $150.13 per sqft, with the average being $115.54 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Minnesota ranges from $79.47 to $121.70 per sqft, with the average being $93.71 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Minnesota ranges from $62.68 to $96.07 per sqft, with the average being $73.94 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

List of 12 Cities in Minnesota – Percentage Deviation of the City/Town Building Cost from the National Average ($X), in Descending Order:

There are 2633 municipalities including 853 cities grouped into 87 counties in the state of Minnesota. The bar chart below indicates that building costs vary in each city/town. The construction cost per square foot in each of these cities varies from the state and national average by a certain percentage based on the location factor also known as the local modifier.

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The percentage deviation of building costs from the National Average for each city in Minnesota is shown below.

If $X is the Average National Building Cost in the USA, then it will cost the following to build a residential property in each metro city/town in Minnesota:

Minnesota Average -1% (1% less than X)

  • Fergus Falls 565 -10%
  • Magnolia 561 -8%
  • Bemidji 566 -6%
  • Willmar 562 -6%
  • Mankato 560 -4%
  • Brainerd 564 -3%
  • Thief River Falls 567 -2%
  • Rochester 559 -1%
  • Duluth 556-558 2%
  • St Cloud 563 2%
  • St Paul 550-551 12%
  • Minneapolis 553-555 13%

The City List above as well as the Bar Graphs below show that Fergus Falls is the cheapest city to build a private home in the state of Minnesota, and Minneapolis is the most expensive city to build a home. Building costs are -10% below the national average in Fergus Falls and 13% above the national average in Minneapolis.

Cheapest Places To Build in Minnesota:

Fergus Falls is the cheapest to place to build at -10% below the national average, followed by Magnolia at -8% below the national average. The third cheapest places to build a house are Bemidji and Willmar at -6% below the national average, followed by Mankato at -4% below the national average. The fifth cheapest place to build is Brainerd at -3% below the national average, followed by Thief River Falls at -2% below the national average.  The seventh cheapest place to build a home is Rochester at -1% below the national average. The eight cheapest places to build a home are Duluth and St Cloud at 2% above the national average.

Expensive Places To Build in Minnesota:

If anything between 5% and 10% is considered expensive, then there are no such cities in the state of Minnesota.

More Expensive Places To Build in Minnesota:

If anything between 10% and 15% is considered more expensive, then there are two such cities in state of Minnesota. Building costs in St Paul are 12% above the USA average. The cost of building a house in Minneapolis is 13% above the USA average.

Very Expensive Places To Build in Minnesota:

The most expensive places to build a house are those which are 15% above the national average. There are no such places in the state of Minnesota.

Minnesota State Average Costs:

Private home building costs in the state of Minnesota are -1% below the national average. Building costs in Rochester are equal to the State Average. Building cost rates in Thief River Falls, Duluth and St Cloud are closer to the Minnesota state average by a deviation of 1%. Minnesota is one of the cheapest states to build a home in the United States, at number 24 on the national ascending costs scale.


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