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How Much Home You Can Buy for $200k in Minnesota

imageForEntry8 BI5With home prices declining for over six months, some U.S. housing market conditions have shifted to favor buyers. Still, other conditions stack up against homebuyers, particularly mortgage rates. As inflation began to surge, the Federal Reserve raised interest rates nine times in 12 months in an attempt to stem rising prices. The cumulative 475 basis points Fed rate hike sent mortgage rates soaring, forcing many homebuyers to reevaluate their budgets and consider exactly how much house they can afford.

Since September 2022, the average interest rate on a 30-year fixed rate mortgage has been above 6%, the highest it has been in nearly a decade and a half. With historically high borrowing costs, many homebuyers are seeking more affordable markets. And in some parts of the country, a relatively modest housing budget goes a lot further than in others.

According to data from the Federal Reserve Bank of St. Louis, the median list price for a home in Minnesota was about $204 per square foot as of March 2023. Based on price per square foot, a homebuyer with a $200,000 budget can afford a 980 square foot home, the 25th largest of any state. A year earlier, the size of a $200,000 home in the state was 14.2% bigger than it is today.

Based on data from the U.S. Census Bureau’s 2021 American Community Survey, the typical home in Minnesota is worth $285,400, compared to the national median home value of $281,400.

Rank State Approx. sq. ft. of a $200k home, March 2023 Median home list price per sq. ft., March 2023 ($) Approx. 1 yr. change in size of a $200k home (%) Median home value ($)
1 West Virginia 1,600 125 -13.6 143,200
2 Mississippi 1,515 132 -12.1 145,600
3 Ohio 1,493 134 -7.5 180,200
4 Indiana 1,351 148 -8.1 182,400
4 Arkansas 1,351 148 -15.5 162,300
6 Louisiana 1,316 152 -5.3 192,800
6 North Dakota 1,316 152 -10.5 224,400
8 Kansas 1,290 155 -18.7 183,800
9 Kentucky 1,282 156 -9.6 173,300
10 Alabama 1,274 157 -10.8 172,800
11 Oklahoma 1,250 160 -16.3 168,500
12 Missouri 1,235 162 -7.4 198,300
13 Michigan 1,220 164 -4.3 199,100
14 Illinois 1,163 172 -0.6 231,500
14 Pennsylvania 1,163 172 -2.3 222,300
16 Nebraska 1,143 175 -12.6 204,900
17 Georgia 1,111 180 -3.3 249,700
17 Iowa 1,111 180 -10.6 174,400
19 Wyoming 1,099 182 -12.1 266,400
20 Texas 1,081 185 -4.9 237,400
21 New Mexico 1,064 188 -12.2 214,000
22 South Carolina 1,058 189 -8.5 213,500
23 Wisconsin 1,026 195 -9.7 230,700
24 South Dakota 1,010 198 -9.6 219,900
25 Minnesota 980 204 -14.2 285,400
26 North Carolina 966 207 -2.9 236,900
27 Virginia 952 210 -4.3 330,600
28 Maryland 913 219 -4.1 370,800
28 Tennessee 913 219 -8.2 235,200
30 Delaware 893 224 -6.7 300,500
31 Vermont 855 234 -10.3 271,500
32 Alaska 851 235 -7.7 304,900
33 Utah 803 249 4.0 421,700
33 Maine 803 249 -12.9 252,100
35 Nevada 787 254 3.1 373,000
36 Connecticut 775 258 -3.9 311,500
37 Arizona 763 262 0.8 336,300
38 Idaho 755 265 9.4 369,300
39 New Jersey 746 268 -1.5 389,800
40 Florida 727 275 -1.8 290,700
41 Colorado 699 286 -1.4 466,200
41 New Hampshire 699 286 -10.8 345,200
43 Oregon 662 302 2.0 422,700
44 Washington 631 317 2.5 485,700
45 Montana 629 318 -7.2 322,800
46 Rhode Island 625 320 -7.8 348,100
47 New York 524 382 1.8 368,800
48 Massachusetts 498 402 -0.2 480,600
49 California 461 434 4.6 648,100
50 Hawaii 300 666 4.7 722,500
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