Building a home in Minnesota has become trickier post-pandemic.
What $400,000 will get Twin Cities homebuyers looking for new construction
Most options are townhouses, though some single-family houses are available in outer-ring suburbs. Many new developments also have homeowners associations that handle community maintenance.
The Minnesota Star Tribune
August 30, 2024 at 4:59PM
With a tight housing market that only recently started tipping toward buyers — not to mention continued high home prices and mortgage rates — many buyers interested in new construction are turning to townhouses. The median sales price for new construction townhouses was $380,000 in July, while that figure for single-family houses was $529,190, according to the latest data from the Minneapolis Area Realtors (MAR). Per square foot, townhouses are a lot cheaper, coming in at $218 compared to single-family houses at $233.
Developers have also included features that make townhouses feel more like standalone homes, said Shannon Huber, vice president of sales for Pulte Homes’ Minnesota division. For example, townhouses in Pulte’s developments have airspace between the walls of units, cutting down on noise.
“Sound travels through vibrations, and since the walls are not touching one another, that cuts down on the noise,” Huber said. “There’s also private outdoor spaces for families, and in the house, there’s a mudroom, multiple entries. You get all the perks a single-family home has.”
Besides privacy, many buyers are interested in neighborhoods with good school districts and nearby trails and parks, Huber said. Many townhouses are part of homeowners associations that take care of lawn care during warm months and snow removal in the winter, which cuts down on maintenance in exchange for monthly dues payments. But a lower price point on townhouses overall allows buyers the ability to customize.
In general, the closer to the metro, the more expensive and smaller new builds will be. Here are four options under $400,000 from two of the metro area’s major builders:
1. Maple Grove townhouse starting at $370,990
Development: Rush Hollow by Pulte
Drive time to Twin Cities: about 30 minutes.
Northwest of the metro, Rush Hollow offers a variety of houses, but to fit into a $400,000 budget, a buyer would have to go for a townhouse. Base models include three bedrooms, two bathrooms and 1,883 square feet starting at $370,990. From there, buyers can add on features such as a gas-powered fireplace or sunroom while still comfortably keeping the overall price under $400,000.
The Rush Hollow development abuts Elm Creek Reserve, which has ski hills and tubing during the winter and ample trails and beaches during the summer. Home association dues are $263 a month, and Pulte has 101 townhouses available in the development.
2. Rosemount townhouse starting at $360,990
Development: Amber Fields by Pulte
Drive time to Twin Cities: about 30 minutes.
South of the cities, Amber Fields has homes starting at $360,990 and, similar to Rush Hollow, has a number of add-on features that would still keep the overall price under $400,000. Base models are three bedrooms, two bathrooms, two-car garages and 1,883 square feet.
The neighborhood community will include 700 acres of green space and more than 5 miles of trails. Situated near several major highways, it makes for a direct commute to both downtowns.
Home association dues are $254 a month, and Pulte has 111 townhouses available in the development.
3. Little Canada townhouse starting at $363,990
Development: Pioneer Commons by Lennar.
Drive time to Twin Cities: about 20 minutes.
Northeast of the cities, Lennar offers new townhouses with base models starting at 1,769 square feet, including three bedrooms, two bathrooms and a two-car garage. The two-story townhouses feature a spacious double-height foyer near the front door and a primary bedroom with an attached bathroom.
A central location in the east metro, it’s close to several lakes such as Gervais Lake. It’s also a short drive to Phalen Regional Park and Nadeau Wildlife Area.
4. Single-family house in Buffalo starting at $350,000
Development: Settlers Brook by Lennar.
Drive time to Twin Cities: about one hour.
A true single-family house with no shared walls and a sizable side yard northwest of the cities. The biggest drawback is the distance to both downtowns for commuters.
Settlers Brook has a variety of houses available, including two-story homes and one-level living floor plans. Square footage ranges from 934 to 2,230. The community is planning on building a park in the neighborhood, and shopping and restaurants are nearby, according to Danielle Tocco, vice president of communications at Lennar Corp.
Other single-family developments coming up from Lennar with prices starting in the low $300,000 range will be northwest of the metro in Otsego and south metro in Farmington, Tocco said in an email.
Architect Michael Hara wanted to carry on a legacy from his father and grandfather by also building his own house. It went on to win a design honor from the American Institute of Architects Minnesota.
