Albert Lea, MN Housing Market

Market Overview

Albert Lea’s PropertyIQ Score of 81 out of 100 positions it as a strong market relative to the broader state benchmark. The score is driven by a 12-month home value momentum of 11.43%, a median days on market of 60 days, and a share of listings with a price cut of 15.7%. The local median home value of $200,076 is significantly below the Minnesota state average of $350,752, and the rent index of $1,136 is below the state average of $1,280. These lower costs give Albert Lea a distinct affordability advantage, even though median household income of $71,023 is also below the state average of $89,062.

At the same time, the market’s recent price signals are mixed. The 3-month home value momentum is -0.40%, and the listed year-over-year change in median home value is -$7. This indicates that while the 12-month trend remains positive, the most recent months have flattened or cooled slightly. With 128 homes for sale and a median days on market of 60 days, inventory is not extremely tight, but the market is not oversupplied either. The unemployment rate of 4.3% matches the state average. Population growth data is not available, so the demand picture from migration cannot be assessed.

Key Trends

The first trend is a strong annual price gain that has recently softened. The top score driver is 12-month home value momentum of 11.43%, but the 3-month momentum of -0.40% and the year-over-year median home value change of -$7 point to cooling in the near term. This suggests that much of the annual momentum was built earlier in the year and current price growth has stalled or reversed slightly.

A second trend is affordability relative to Minnesota. The median home value of $200,076 is about $150,000 below the state average of $350,752. The rent index of $1,136 is $144 below the state average of $1,280. Although median household income is lower in Albert Lea at $71,023 versus $89,062 statewide, the gap in home values is larger than the income gap, which may make homeownership more attainable locally than in many parts of the state.

A third trend is a balanced but cooling selling environment. With 128 homes for sale and a median days on market of 60 days, homes are taking about two months to sell. The share of listings with a price cut is 15.7%, meaning roughly one in six listings has reduced its price. Combined with the negative 3-month momentum, this indicates sellers may need to price carefully to attract buyers.

A fourth trend is relatively favorable rental economics. The local rent index of $1,136 compared with the median home value of $200,076 suggests a stronger rent-to-price relationship than the state pairing of a $1,280 rent index and $350,752 median home value. This may support investor interest, though the local unemployment rate of 4.3% is equal to the state average and household incomes are lower.

Who Is This Market For

Albert Lea is well suited to first-time buyers and budget-conscious households. The median home value of $200,076 is far below the state average of $350,752, and a median days on market of 60 days gives buyers a moderate amount of time to make decisions. The share of listings with a price cut at 15.7% may also create negotiation opportunities.

The market may also appeal to investors seeking rental income. The rent index of $1,136 paired with a median home value of $200,076 offers a more attractive rent-to-price dynamic than the state average, and the unemployment rate matches the state at 4.3%. However, with a median household income of $71,023 below the state average of $89,062, tenants may have more limited budgets. Move-up buyers may find less urgency because home values are already moderate and recent price momentum is slightly negative, but those looking for lower carrying costs than the state average could find value here.

Outlook

The near-term outlook for Albert Lea is one of cautious stability. The PropertyIQ Score of 81 out of 100 is supported by 12-month home value momentum of 11.43%, but the 3-month momentum of -0.40% and the listed year-over-year median home value change of -$7 point to a cooling trend. With a median days on market of 60 days, 128 homes for sale, and a 15.7% share of listings with price cuts, the market appears to be balancing between annual gains and current softness. The affordable median home value of $200,076, steady unemployment rate of 4.3% matching the state, and rent index of $1,136 provide a foundation for stability. The lower median household income of $71,023 and missing population growth data suggest that significant near-term price acceleration is not strongly supported by the available numbers.