Faribault, MN Housing Market

Market Overview

Faribault presents a moderate market profile, reflected in a PropertyIQ Score of 68 out of 100. The median home value is $352,805, just above the Minnesota state average of $350,752, while the rent index is $1,563, well above the state average of $1,280. That rental strength is a positive, but median household income is $83,181, below the state average of $89,062. Unemployment matches the state benchmark at 4.3 percent, so employment conditions are neither a tailwind nor a drag.

Market pace indicators point to balanced-to-cooling conditions rather than a strong seller’s market. There are 200 homes for sale, median days on market is 49, and 15.5 percent of listings have a price cut. Home value momentum is mixed: the 12-month figure is 5.73 percent, while the 3-month figure is -0.90 percent. The dataset reports home value year over year as $0, which is difficult to reconcile with a positive 12-month momentum, but the freshest signal is cooling.

Overall, Faribault’s 68 score reflects a market with solid rental economics and stable employment, tempered by affordability constraints and near-term price softness.

Key Trends

First, price momentum has cooled. The 12-month home value momentum of 5.73 percent shows earlier appreciation, but the 3-month momentum of -0.90 percent and the reported year-over-year figure of $0 suggest that annual gains have flattened and recent movement is slightly negative.

Second, Faribault carries a rental premium. The rent index of $1,563 is about 22 percent above the state average of $1,280, while the median home value is nearly identical to the state benchmark. That combination supports stronger rental yields than the state norm and points to solid local rental demand.

Third, inventory and pricing signals are shifting toward buyers. With 200 homes for sale and a median of 49 days on market, homes are not selling at a rapid pace. The share of listings with a price cut is 15.5 percent, indicating that sellers are adjusting to softer conditions, though not at distressed levels.

Fourth, affordability is tighter than the state average. Median household income is $83,181, about $5,881 below the state average of $89,062, while the median home value is slightly above the state average. This income gap limits how far local buyers can stretch and may cap price growth without stronger wage gains.

Who Is This Market For

Rental property investors are the most natural fit for this data. Faribault’s rent index of $1,563 versus the state average of $1,280, combined with a median home value of $352,805, creates a more favorable rent-to-price relationship than the state benchmark. The 15.5 percent price-cut share and 49-day median time on market also give investors negotiation room. Population growth is not available, so long-term tenant demand cannot be fully confirmed from the provided data.

First-time buyers may find opportunity, but affordability is mixed. Home values are close to the state average while local incomes are below it, making the entry point feel larger for many households. The negative 3-month momentum and presence of price cuts could help buyers negotiate, but income constraints remain a real hurdle.

Move-up buyers face a moderate environment. Selling may take patience with a 49-day median and a 15.5 percent price-cut share, but the cooling market also reduces bidding-war urgency. The data supports longer-hold rental strategies or patient owner-occupants more than speculative flipping.

Outlook

The near-term outlook is stable-to-soft for home prices. The 12-month momentum of 5.73 percent shows underlying demand, but the -0.90 percent 3-month momentum and reported $0 year-over-year change indicate stalled or slightly declining prices. With 200 homes for sale, a 49-day median, and 15.5 percent of listings with price cuts, sellers will likely need competitive pricing. The rent index of $1,563 compared with the state average of $1,280 provides a support floor through investor interest. However, median household income of $83,181 remains below the state average of $89,062, and population growth data is unavailable. The data supports a cautious, balanced outlook rather than a sharp acceleration or downturn.