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Dover, Minnesota: Rising Home Values and Steady Ownership in a Small but Growing Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Dover, Minnesota, is a small but growing community located in Olmsted County. Over the past decade, this charming city has experienced significant changes in its housing market and population dynamics. The city has maintained a predominantly owner-occupied housing market, with homeownership rates consistently above 85%. Average home prices have shown a steady upward trend, while average rent prices have fluctuated over the years.
The relationship between homeownership rates and average home prices in Dover presents an interesting dynamic. In 2013, the homeownership rate was 92%, with an average home price of $190,713. As average home prices increased to $257,325 in 2018, the homeownership rate slightly decreased to 85%. However, this trend reversed in subsequent years. By 2022, despite average home prices reaching $343,438, the homeownership rate rebounded to 86%. This suggests that Dover residents have maintained a strong preference for homeownership, even in the face of rising property values.
Federal interest rates have played a role in shaping homeownership trends in Dover. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates remained high, above 87%. As interest rates began to rise in 2017 (1%) and 2018 (1.83%), there was a slight dip in homeownership to 85%. However, the city's homeownership rate proved resilient, bouncing back to 88% in 2020 despite interest rates fluctuating.
Renter percentages and average rent prices in Dover have shown some correlation over the years. In 2013, the renter-occupied rate was 7%, with an average rent of $575. As the renter percentage increased to 15% in 2018, average rent also rose to $663. However, this relationship wasn't always consistent. For instance, in 2016, despite a renter percentage of 13%, average rent spiked to $781. By 2022, with a renter percentage of 14%, average rent reached $775, indicating a general upward trend in rental costs despite fluctuations in the renter population.
Looking at the most recent data, average home prices in Dover continued to rise in 2023, reaching $345,916, and further increased to $350,678 in 2024. This represents a steady appreciation in property values. Notably, federal interest rates have also increased significantly, standing at 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends.
Applying predictive models to forecast 5-year trends, average home prices in Dover are expected to continue their upward trajectory, potentially reaching around $400,000 by 2029. Average rent prices are also projected to increase, possibly surpassing $850 per month within the same timeframe. These predictions are based on historical trends and current market conditions.
In summary, Dover has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing property values. Despite fluctuations in federal interest rates and rental market dynamics, the city has maintained a strong preference for owner-occupied housing. The consistent growth in average home prices, coupled with the recent surge in interest rates, suggests that Dover's real estate market remains attractive to both long-term residents and potential newcomers. As the city continues to grow, it will be interesting to observe how these housing trends evolve in response to broader economic factors and local development initiatives.
