Building a home in Minnesota has become trickier post-pandemic.
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.