Spoiler alert: Housing affordability isn’t as simple as the headlines make it sound.
Depending on who you ask, the real issue isn’t just home prices or even the number of homes on the market. It’s about access. It’s about opportunity. And most of all, it’s about what affordable means for the people trying to buy.
So, what does affordability look like here in Grand Forks, North Dakota? And where do you actually stand a chance of finding the right home at the right price?
Let’s break it down.
Inventory Crisis or Access Crisis?
If you’ve been following the national conversation, you’ve heard plenty about the “housing shortage.” But two of the biggest names in real estate data—Logan Mohtashami and Ivy Zelman—have different takes on what’s really happening.
Ivy Zelman’s Take: The Problem Is Accessibility, Not Just Supply
Ivy Zelman, who famously predicted the 2008 housing crash, argues today’s real issue isn’t just a lack of homes; it’s a lack of affordable homes. Simply put, if monthly payments aren’t within reach, inventory numbers don’t matter much.
Zelman points out that many young adults today can’t even afford to rent, let alone buy. This affordability gap is real, and it’s shaping the entire market.
Logan Mohtashami’s Take: Affordability Has Always Been a Challenge
Logan Mohtashami brings a historical view: “When was housing ever affordable?” Home prices have always trended up during periods of inflation — and yet, people still buy homes.
His advice? Get real about expectations. Most buyers succeed by adjusting their budget, location, or must-have list.
How Does North Dakota Housing Affordability Compare?
While national experts debate, Realtor.com recently released a State Report Card grading each state’s performance on affordability and homebuilding.
Here’s how North Dakota stacks up:
- Overall Grade: C
- REALTORS® Affordability Score: 49
- Median List Price: $359,034
- Median Household Income: $73,489
- Share of 2024 Permits: 0.2%
- Share of Population: 0.2%
- New Construction Premium: 45.4%
North Dakota lands right in the middle compared to much of the country. Home prices in North Dakota remain well below the national median, and steady new construction activity supports more opportunities for buyers.
In short: Buying a home in North Dakota, especially around Grand Forks, is far more attainable than in most states.
What Housing Affordability Looks Like in Grand Forks
Statewide numbers are helpful, but the real story is right here in Grand Forks.
In our community, affordability can look very different depending on the neighborhood. Areas like University Park and Riverside offer more starter-home opportunities, while newer developments like Crary’s Fourth Addition might come with a premium price but also newer amenities.
Local buyers are finding success by:
- Looking in up-and-coming neighborhoods like near UND or on the city’s south end.
- Using Grand Forks-specific down payment assistance programs.
- Exploring builder incentives such as interest rate buydowns or closing cost credits.
Creative solutions like purchasing smaller, energy-efficient homes or partnering with co-buyers (friends or family) are also becoming more common.
The Good News: There Are Paths Forward
Yes, home prices have risen. Yes, mortgage rates are higher than a few years ago. But your dream of owning a home in Grand Forks isn’t out of reach.
Here’s how buyers are making it work:
- Getting clear on their budget early.
- Exploring flexible financing options, like North Dakota’s FirstHome program for first-time buyers.
- Being open to different neighborhoods and property types to stay within budget.
If you’re curious about what’s possible for you in today’s market, or just want to understand where the best opportunities are in Grand Forks, CONTACT ME for the latest local insights.
