In North Dakota, a small but influential group of high earners is quietly reshaping the upper end of the housing market. Households making over $500,000 a year—often tied to energy, business, or remote executive roles—have helped spark new demand for luxury homes, custom builds, and properties with space and privacy. From 2018 through 2023, their buying patterns reveal how the oil boom, the pandemic, and flexible work have shifted the definition of premium living in a state known more for wide-open land than flashy real estate.

Luxury Market Growth in North Dakota

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In the past, North Dakota wasn’t widely known for high-end real estate – but that is changing. From 2018 to 2023, home sales in the top price tiers surged. By 2021, nearly 1 in 10 homes sold in North Dakota fetched over $500,000, a sharp rise from just around 1 in 50 a decade earlier. In 2012, only about 2% of homes sold for more than $500K, but by 2021 that share had jumped to 9%. 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. The average sale price for a North Dakota home climbed roughly 42% over the decade, from about $188,000 in 2012 to $267,000 in 2021. Higher-end properties led the charge – more expensive homes made up a much larger portion of sales by the early 2020s than they did in the 2000s.

Increased Demand and Faster Sales

Demand for high-end homes intensified during 2020–2021. Even though there were relatively few buyers with $500K+ incomes, those that did exist were actively buying real estate. In 2017, a house listed above $500,000 in North Dakota sat on the market for an average of 143 days (nearly five months). 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

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One key question for high-income homebuyers is whether to build new or buy an existing home. In North Dakota, new construction slowed in the late 2010s but saw a modest revival in the early 2020s as demand picked up. Building permit data shows the state experienced an earlier construction boom during the oil heyday (2010–2014) and then a pullback.

During 2020–2021, low interest rates and surging buyer demand spurred builders to pick up the pace again. In 2021, around 696 new homes were sold through North Dakota’s MLS, up from a low of about 482 new home sales in 2018. High-income buyers were a big part of this new construction uptick, since building costs made most brand-new houses relatively expensive.

Construction Costs and Limitations

Construction costs have been a big factor. The average basic construction cost in 2018 was about $118 per square foot (not including land or extras). 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.

Due to the cost of materials, labor, land, and utilities, it was nearly impossible by 2020 to build a new house for under $250,000 in North Dakota. Given those economics, most new builds naturally fell into price ranges that only affluent buyers could comfortably afford.

Geographic Distribution of New Luxury Homes

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Much of North Dakota’s new construction for high earners has been concentrated in and around the major cities:

  • In the Fargo-West Fargo area, entire neighborhoods of large, newly built homes have sprung up. West Fargo in particular became a hotspot for upscale development. By 2020, West Fargo’s average home sale price hit about $307,785 – one of the highest in the state.
  • In Bismarck, new high-end homes have clustered on the southern edges of the city and near the Missouri River, featuring big lots and river views.
  • In the oil patch (Williston and Dickinson areas), luxury construction boomed during the oil surge early in the decade, then slowed, but never completely stopped.

Despite this building activity, existing homes remained a major part of the luxury market. From 2018–2023, the majority of home purchases by $500K+ earners were existing homes simply because there were more of them available. For those eager to upgrade, remodeling high-end homes became common – wealthy buyers might purchase a 10-year-old luxury house and then invest in a kitchen makeover or smart-home technology.

Home Sizes, Styles, and Locations Favored

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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. It’s not unusual for upscale properties to feature 5 or 6 bedrooms and 3+ bathrooms, to accommodate large families or visiting relatives.

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. Two-story traditional homes with modern interiors are also common in upscale subdivisions – these often have stone-and-steel facades, big front porches, and three-stall garages. Many new luxury homes feature an “open concept” layout, with a wide-open kitchen, dining, and living area for entertaining.

Prime Locations for Luxury Buyers

When it comes to location within the state, high-income buyers are somewhat concentrated around economic hubs:

Fargo–West Fargo (eastern ND): This metro, the state’s largest, has seen the greatest number of luxury purchases. 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.

Bismarck–Mandan (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.

Oil Patch Cities (Williston, Dickinson) (west): During the oil boom years, a number of oil executives and entrepreneurs made fortunes, and some invested in lavish homes locally. Williston’s average home price soared from around $146K in 2010 to $256K by 2014, before stabilizing. Some wealthy oil families built sprawling houses outside of town on ranchland, with big shops for their trucks and equipment.

Grand Forks (northeast ND): As a university and Air Force base town, Grand Forks has fewer $500K+ earners, but it isn’t without some upscale enclaves. A few high-income professors, military officers, or business owners purchase luxury homes here, especially in newer developments south of town.

Lakes and Recreation Areas: Places like Devils Lake and Lake Metigoshe have attracted a few high-income buyers looking for second homes or weekend retreats. The truly affluent often look just over the border to Minnesota’s lake country for more options.

Luxury Features and Amenities

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What features do North Dakota’s wealthiest homebuyers want? In short: comfort, space, and the latest amenities. Many of these buyers are purchasing what could be considered dream homes, and they tend to prioritize high-quality features:

Spacious Garages and Workshops

Given North Dakota’s love of trucks, boats, and campers – and the cold winters – luxury homes nearly always come with oversized garages. 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.

Chef’s Kitchens and Entertaining Space

High-end buyers love kitchens with top-tier appliances (Sub-Zero refrigerators, six-burner gas ranges, wine fridges), large islands, and custom cabinetry. Open layouts connecting the kitchen to a great room are favored for entertaining. Wet bars or full second kitchens are often found in finished basements, facilitating entertainment during game days or parties.

Technology and Efficiency

Today’s high-income buyers expect smart home technology. Security systems with cameras, smart thermostats, smart lighting, and whole-home audio are frequently installed. Energy-efficient construction is also important – even though these buyers can afford utility bills, many luxury homes are built with quality insulation, high-efficiency HVAC systems, and sometimes even solar panels or geothermal heating.

Luxury Master Suites

A hallmark of an upscale home is a lavish master suite. Ensuite bathrooms feature spa-like touches: tiled walk-in showers (multiple showerheads, steam shower options), jetted soaking tubs, dual vanities, and in-floor heating. Walk-in closets are usually enormous and sometimes custom-designed with organization systems.

Basements and Bonus Spaces

Many North Dakota homes have basements, and for luxury homes the lower level is often fully finished into an entertainment zone. Common features include home theaters, game rooms, exercise rooms or home gyms, and wet bars. High earners increasingly desire a dedicated home office (or two) as well – especially after 2020, when home offices became a priority for remote work.

Outdoor Amenities

Despite the long winters, North Dakotans make the most of the warmer months, so outdoor living space is valued. 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.

Upsizing, Downsizing, and Second Homes

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A notable trend among $500K+ earners in North Dakota during 2018–2023 was “upsizing” – buying larger homes with more features. Many of these high earners are in their prime working years (40s and 50s), often with families, and they’ve leveraged rising incomes to move into their forever homes. This kind of upward move has been common, especially while interest rates were ultra-low in 2020–2021.

However, not all wealthy buyers are upsizing. Some are empty nesters or retirees looking to downsize – but “downsize” is relative. A subset of high-income homeowners in their 60s+ have been selling large suburban homes and opting for luxury townhomes or condos with less maintenance. In Bismarck, for instance, a few upscale townhome developments and high-rise condo buildings have drawn interest from older professionals who want a simpler lifestyle without giving up quality.

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. Popular choices include:

Lake Cabins: Many ND high earners bought or already owned cabins in Minnesota’s lakes country. Even within North Dakota, Devils Lake saw increased interest; owning a lakefront home where one can fish and boat in the summer became a priority for some.

Ranch and Hunting Land: Another type of second property some ND wealthy buyers pursued is rural land for recreation. It’s not unusual for a successful professional in the city to purchase a country estate or ranch in western North Dakota for hunting, horseback riding, or just a private getaway.

Out-of-State Retreats: While not within North Dakota, it’s worth noting that many high-income households here invest in second homes in places like Arizona or Florida. The cold winters spur even relatively younger affluent folks to seek a sunshine escape.

Impact of Remote Work and COVID-19

The COVID-19 pandemic and the rise of remote work had significant effects on homebuying trends, especially for those with financial freedom to choose where and how to live:

Pandemic Housing Boom

Once initial lockdowns eased, the housing market took off. 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. Over 60% of North Dakotans live in owner-occupied housing, and they saw above-average increases in home values in 2020. High-income buyers, who generally weren’t as financially hurt by the pandemic, took advantage of the situation to upgrade homes.

“Zoom Town” Appeal

Suddenly, work-from-home became normal for many white-collar professionals. A number of North Dakotans who previously might have been tied to an office found they could work from anywhere. This led some high earners to relocate from city centers to more rural or spacious locales within the state. For example, a tech manager living in Fargo’s city limits, now remote, might decide to buy an acreage home outside of town since they no longer commute daily.

Home Offices and Flex Space

Remote work also changed what features high-end buyers wanted. A home office (or two) became virtually essential for anyone earning $500K+ who was likely in a leadership role doing Zoom calls. Houses that could offer a dedicated, comfortable office – with good sound insulation, built-in shelving, and great connectivity – were in high demand. Some buyers even prioritized dual offices if both spouses worked from home.

Desire for Amenities at Home

With gyms, restaurants, and entertainment temporarily closed or restricted, high-income individuals started bringing those experiences home. This spurred interest in home gyms, home theaters, and gourmet kitchens for more at-home cooking. The luxury segment saw this clearly – buyers were explicitly looking for homes that offered “sanctuary” features: big backyards, ample room for family members to spread out, and recreation options.

Market Tightness and Competition

Interestingly, while remote work increased demand, the pandemic initially slowed new construction due to supply chain issues. 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.

Comparison to 2008–2017 Trends

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To appreciate how dramatic the recent changes are, it helps to contrast with the previous decade:

Oil Boom Wealth vs. Steady Growth

From around 2008 to 2014, North Dakota experienced an oil drilling boom in the Bakken formation that brought a sudden influx of wealth. During those boom years, the state actually led the nation in income growth – by 2012 North Dakota’s per capita income was the 2nd highest in the U.S. This created new high-income households virtually overnight. Many of those newly wealthy individuals poured money into real estate – especially in western North Dakota.

2015–2017 Slowdown

When oil prices crashed in late 2014, North Dakota’s economy cooled. Some high earners left the state or lost a chunk of income. Housing construction dropped sharply. In the luxury segment, this meant fewer new high-end homes were built around 2015–2017, and in the oil patch, some luxury homes even sat unsold as the pool of wealthy buyers shrank.

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. The pool of people able to afford such homes was tiny, and without the frenzy of remote-work relocations or pandemic urgency, luxury properties moved slowly.

Different Market Dynamics

If we look at home price appreciation, the five years from 2018–2023 saw significant growth, but the oil boom years saw even more extreme spikes in certain regions. For instance, Williston’s average home price nearly doubled from 2010 to 2014, which is more dramatic than anything in Fargo or Bismarck in recent years.

In summary, 2008–2017 was a tale of boom and bust, with luxury homebuying riding the oil wave in a volatile way. 2018–2023 was more broad-based and steady in its luxury growth – powered by a combination of a diversified economy, demographic shifts (more professionals in tech, healthcare, etc.), and the unique circumstances of the pandemic era.

North Dakota vs. Neighboring States

How do North Dakota’s high-end home trends compare to nearby states like South Dakota and Minnesota? There are similarities, but also some clear differences:

Market Size and Prices

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North Dakota’s luxury housing market is relatively small. As of 2023, a luxury real estate listing site showed only about 50–60 high-end homes for sale in all of ND. By contrast, South Dakota had roughly 140+ luxury listings and Minnesota had a whopping 800+ on the market. The average price for a luxury home in Minnesota is around $1.3 million, notably higher than North Dakota’s roughly $830,000 average listing price for luxury homes. South Dakota’s luxury prices, averaging about $845,000, are only slightly above ND’s.

Economic Drivers

North Dakota’s high-income homebuyers often come from energy, agriculture, or local business sectors. South Dakota, lacking an oil boom, has its wealthy concentrated in places like Sioux Falls (finance, healthcare) and the Black Hills area (tourism, retirees). During 2018–2023, Sioux Falls actually experienced a mini boom as well – it attracted some out-of-state high earners because South Dakota has no state income tax and a business-friendly climate.

Remote Work Migration

In the pandemic, South Dakota gained national attention for attracting remote workers and even some high-profile wealthy individuals. North Dakota did not see such high-profile moves, but it retained its own affluent residents and perhaps gained a few Midwestern remote workers. Minnesota, conversely, saw some urban flight – some Twin Cities residents decamped to lake homes or rural areas temporarily.

Luxury Preferences

The types of properties and amenities desired are fairly similar across the Upper Midwest. One difference is that Minnesota’s wealthy have more interest in lakefront luxury – Minnesota has thousands of lakes and a culture of lake cabins. South Dakota’s unique luxury niche is the Black Hills cabins/ranches with mountain views; North Dakota’s closest parallel might be ranch estates in the Badlands region, but those are rarer.

Conclusion

From 2018 to 2023, North Dakota’s wealthiest households have reshaped parts of the state’s housing market. Once a place with relatively few high-end homes, North Dakota now boasts a growing inventory of luxury properties, faster sales at the top end, and a clear appetite among $500K+ earners for bigger, feature-rich homes.

Comparing this five-year trend to the prior decade underscores how far the market has come. The wild swings of the oil boom years gave way to a more diversified and stable growth in luxury housing demand. Remote work and COVID-19 acted as catalysts, encouraging the well-to-do to invest even more in their homes as sanctuaries.

In a state where the majority of households still earn under $75,000 a year, the impact of a few high-income buyers might seem minor. But their influence on homebuilding trends, property values, and community development is significant. High-end home construction can boost local jobs and tax bases, and luxury home sales contribute disproportionately to market price increases.

Looking ahead, if remote work remains popular and North Dakota continues to grow its economy, we may see even more diverse luxury housing: perhaps more downtown condo developments for affluent urbanites, or master-planned communities with private amenities catering to the wealthy. For now, high-income households in North Dakota are enjoying more choice and comfort in homebuying than ever before, riding a wave of trends that firmly put the state on the map for luxury home living in the northern Great Plains.

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