From 2018 to 2023, home sales in the top price tiers surged.
Luxury home sales went from a rarity to a significant chunk of the market within ten years.
This luxury boom coincided with a general run-up in home prices.
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Increased Demand and Faster Sales
Demand for high-end homes intensified during 20202021.
By 2021, that average time on market for $500K+ homes had plummeted to just 89 days.
Wealthy buyers were snapping up luxury properties faster than before, reflecting heightened competition for upscale homes.
New Construction vs.
Existing Homes
One key question for high-income homebuyers is whether to build new or buy an existing home.
During 20202021, low interest rates and surging buyer demand spurred builders to pick up the pace again.
Construction Costs and Limitations
Construction costs have been a big factor.
For a spacious custom home, that adds up fast.
For example, a 3,500 sq.
ft. new luxury home could easily run $400,000 or more just in base construction costs.
Given those economics, most new builds naturally fell into price ranges that only affluent buyers could comfortably afford.
Home Sizes, Styles, and Locations Favored
One thing about North Dakota: space is plentiful.
High-income homebuyers here generally want big homes and big lots, and they can usually get them.
The typical luxury home in North Dakota is quite spacious about 3,500 to 4,000 square feet on average.
Architectural styles of high-end homes in North Dakota vary, but there are a few favorites.
Ranch-style homes with expansive footprints are popular among buyers who prefer no stairs and lots of open flow.
Affluent buyers here include business owners and professionals.
Upscale homes are found in areas like South Fargo, West Fargo, and along the Red River.
Proximity to good schools and country clubs (e.g.
Oxbow, an exclusive golf community south of Fargo) is a draw.
BismarckMandan(central ND): As the state capital region, Bismarck-Mandan hosts many high-earning professionals.
Luxury homes there often sit along the Missouri River or in the hilly districts on the city fringes.
Buyers here favor properties with scenic views, river access, or backing to natural coulees.
Willistons average home price soared from around $146K in 2010 to $256K by 2014, before stabilizing.
The truly affluent often look just over the border to Minnesotas lake country for more options.
Luxury Features and Amenities
What features do North Dakotas wealthiest homebuyers want?
In short: comfort, space, and the latest amenities.
A three-stall garage is standard; many high-end homes have four or more garage bays.
Heated garages are a popular upgrade, so vehicles stay warm in winter.
Some properties even boast separate outbuildings or shops for additional storage of recreational vehicles, especially on acreages.
Open layouts connecting the kitchen to a great room are favored for entertaining.
Technology and Efficiency
Todays high-income buyers expect smart home technology.
Security systems with cameras, smart thermostats, smart lighting, and whole-home audio are frequently installed.
Luxury Master Suites
A hallmark of an upscale home is a lavish master suite.
Walk-in closets are usually enormous and sometimes custom-designed with organization systems.
Common features include home theaters, game rooms, exercise rooms or home gyms, and wet bars.
Luxury homes often boast large decks or patios, sometimes covered or with pergolas.
Built-in outdoor kitchens, fire pits, and even swimming pools or hot tubs appear in some top-tier properties.
Some rural luxury estates even have private horse barns, corrals, or hobby farms.
This kind of upward move has been common, especially while interest rates were ultra-low in 20202021.
However, not all wealthy buyers are upsizing.
Some are empty nesters or retirees looking to downsize but downsize is relative.
Second Homes and Retreats
Second homes have also been part of the story.
Some high-income families acquired second homes within driving distance as a safe retreat during the pandemic.
The cold winters spur even relatively younger affluent folks to seek a sunshine escape.
Federal stimulus, low mortgage rates, and a desire for more space sent buyers scrambling.
North Dakota was no exception by late 2020, housing inventory was tight and prices were climbing.
Zoom Town Appeal
Suddenly, work-from-home became normal for many white-collar professionals.
This led some high earners to relocate from city centers to more rural or spacious locales within the state.
Home Offices and Flex Space
Remote work also changed what features high-end buyers wanted.
Some buyers even prioritized dual offices if both spouses worked from home.
This spurred interest in home gyms, home theaters, and gourmet kitchens for more at-home cooking.
Combined with few listings, the result was a frenzied market in 2021.
Even wealthy buyers faced competition and sometimes bidding wars for the most desirable homes.
This urgency helps explain why the average days on market for high-end homes dropped so much by 2021.
This created new high-income households virtually overnight.
Many of those newly wealthy individuals poured money into real estate especially in western North Dakota.
20152017 Slowdown
When oil prices crashed in late 2014, North Dakotas economy cooled.
Some high earners left the state or lost a chunk of income.
Housing construction dropped sharply.
Longer Market Times
Prior to 2018, selling a high-end home in North Dakota often required patience.
In 2017, a $500K+ home took on average almost 5 months to find a buyer.
In smaller cities, it could take even longer.
), and the unique circumstances of the pandemic era.
North Dakota vs.
Neighboring States
How do North Dakotas high-end home trends compare to nearby states like South Dakota and Minnesota?
By contrast, South Dakota had roughly 140+ luxury listings and Minnesota had a whopping 800+ on the market.
South Dakotas luxury prices, averaging about $845,000, are only slightly above NDs.
Economic Drivers
North Dakotas high-income homebuyers often come from energy, agriculture, or local business sectors.
Luxury Preferences
The types of properties and amenities desired are fairly similar across the Upper Midwest.
Comparing this five-year trend to the prior decade underscores how far the market has come.
But their influence on homebuilding trends, property values, and community development is significant.
