2021 North Dakota RE Market Forecast

[Matthew Rogers]

Friends,

I'm interested in hearing your thoughts on the ND real estate market in 2021. In my area (Minot) single family homes can still be found at reasonable prices and rent well. I'm cashing flowing $300+ on the two I have currently. I close on my 3rd next week and it projects to do even better. However, multi-family deals seem to be expensive, overdeveloped and in short supply on the MLS. I'm optimistic that Air Force base upgrades (North) and the Trinity hospital development (South) will create a positive growth trend over the course of the next 5+ years. This year I am seeing estimates of 8% appreciation in the zip codes I own property in.

I am expanding my radius to find a good multi family or small apartment deal, but have no idea how to evaluate the more rural areas.  Bismarck looks to be pretty expensive and Williston/Dickinson I worry about due to the current politics surrounding fossil fuels.  Grand Forks/Fargo are a bit beyond my reach.

Any other thoughts/strategies for your neck of the woods this year?

-Matt

[Otto Kinn]

@Matthew Rogers

Minot is a strange environment, no doubt. The established investors seem to stay rather quite. Fortunately for all of us, BP has really supported a new wave of investors for ND's big four (Minot, Fargo, Bismark, & Grand Forks). The other thing with Minot is that it was completely overbuilt a few years back due to the oil boom, but now that the population is back on the rise for reasons other than oil, vacancies are being filled. Currently you can buy existing property for cheaper than you can build it, but my estimate is that will change in the next 3 to 5 years.

Also... DO NOT UNDERESTIMATE RURAL ND. I bought a 6,000 square foot building on main street in a small town for $120,000 with a 1.9% interest rate, and in the next 3 years it will net $3,000/mo up from $1,000/mo today. Find a SFH that can do that. ;)