Is North Dakota the Next Big Thing for Real Estate Investors?
Why real estate investors and entrepreneurs are choosing to invest in the MidWest
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I’m a North Dakota resident, business owner, and real estate investor.
Today I’m sharing the most interesting reasons why investors are flocking from California, New York, and all over the U.S. to invest in my home state.
Here’s why you should consider buying your next real estate investment in North Dakota.
1. House Prices Are Affordable in North Dakota
Let’s start with the most obvious advantage: affordability.
What does this mean for investors?
Lower entry costs mean you can buy more properties, diversify your portfolio, and still keep some cash in your pocket.
When you can own quality properties at a discount compared to other parts of the country, it’s hard not to see why coastal investors are looking to the Midwest.
2. North Dakota Has the 2nd Lowest Unemployment Rate in the U.S.
That’s not just a fluke; it’s been consistently low for years. We’ve got a strong, stable economy driven by energy, agriculture, and an emerging tech sector.
For real estate investors, this low unemployment means people have stable incomes and can afford to buy or rent homes.
It also means businesses are thriving, which drives demand for commercial properties. If you’re investing in North Dakota, you’re investing in a market with a rock-solid economy.
3. Population Growth Is Booming in North Dakota
North Dakota isn’t exactly known for being crowded.
But here’s the thing: while the state’s overall population might be small, cities like Fargo, Bismarck, and Williston are seeing some serious growth.
What’s driving this growth? Jobs.
The energy boom brought in thousands of workers, and many of them decided to stick around. This surge in population means more demand for housing—both for sale and for rent. And when demand goes up, prices follow.
4. Major North Dakota Universities Create Thriving Rental Markets
North Dakota State University (NDSU) in Fargo and the University of North Dakota (UND) in Grand Forks are major economic engines.
Between the two, you’re looking at tens of thousands of students, faculty, and staff who need places to live. That’s a built-in rental market.
Investors who own rental properties near these universities are seeing consistent returns, year after year.
Whether you’re looking at single-family homes converted into student rentals or larger apartment complexes, the demand is there. Plus, universities aren’t going anywhere, and neither is the demand for off-campus housing.
5. Companies Want to Be Headquartered in North Dakota
North Dakota has become a magnet for businesses.
We’ve got a pro-business climate with low taxes, a skilled workforce, and a central location in the Midwest that’s ideal for distribution and logistics.
Forbes even named North Dakota as the #1 place to start a small business in 2024.
When companies move in, they bring their employees with them, and those employees need places to live and work.
This is driving demand not just for residential properties but for office spaces, warehouses, and retail centers as well.
6. The Rental Market Is Strong With People Moving for Energy, Oil, and Construction Jobs
If there’s one thing North Dakota is known for, it’s energy.
The Bakken Formation, a massive oil field in the western part of the state, has been a game-changer.
Even with the ups and downs in oil prices, the industry continues to attract workers from all over the country. And these workers need places to live.
Which makes for a strong rental market.
7. North Dakota Has Lower Than Average Property Taxes (Which Means Higher Returns)
Last but not least, let’s talk about taxes.
North Dakota’s property taxes are some of the lowest in the country, averaging around 1% of a property’s assessed value.
Lower property taxes mean higher net returns for investors.
When you’re not forking over a huge chunk of your rental income or sale proceeds to cover taxes, you get to keep more of your money. And that’s what investing is all about. Maximizing your returns while minimizing your expenses.
Interested in investing alongside me in North Dakota real estate?
So, is North Dakota the next big thing for real estate investors? You bet it is.
Affordable prices
Booming economy
Strong rental market
Investor-friendly environment
This is why I’m proud to live, invest, and build my businesses in the state of North Dakota.
If you want to learn about passively investing alongside me in my Luxury Storage deals in Fargo, Grand Forks, and other growing ND hubs…
See you next week!