Watertown, MN—55388
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Watertown, MN
As of Oct '25, the median home price in Watertown, MN is $374,000, with a year-over-year change of 0.7%. This indicates that home prices in Watertown, MN are flat. According to Zillow, the 1-year price projection is -0.2%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $374,000 | 0.7% |
| Single Family | $374,000 | 0.5% |
| Condos | N/A | N/A |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $290,000 | -0.7% |
3 Bed | $357,000 | 0.8% |
4 Bed | $408,000 | 0.7% |
| 5 Bed | $467,000 | 0.4% |
% of Housing Stock
Rental Trends — Watertown, MN
As of July '25, Rentcast reports the average rent in Watertown, MN is $2,450, with a year-over-year rent change of 12.9%. Per bedroom, the median rent as of July '25 in Watertown, MN is 4-bedrooms: $2,450. The most common rental property sizes in Watertown, MN are 3-bedroom and 2-bedroom, accounting for 50.9% and 29.6% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $2,450 | $2,450 |
| Studio Rent | N/A | N/A |
| 1 Bed Rent | N/A | N/A |
| 2 Bed Rent | N/A | N/A |
| 3 Bed Rent | N/A | N/A |
| 4 Bed Rent | $2,450 | $2,450 |
% of Rental Stock
Property Listings — Watertown, MN
As of Oct '25, Realtor.com reports that the median days on market for a home in Watertown, MN is 68. This is a decrease of -29.0% from last year, suggesting that homes are sitting on the market shorter than last year. The percentage of listed homes with a reduced price is 15.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $410,000 | -1.0% |
Listing Count | 27 | -10.0% |
| Listings as % of Homes | 1.8% | -10.0% |
Days on Market | 68 | -29.0% |
Demographics — Watertown, MN
As of the latest ACS Survey released in 2023, Watertown, MN has a population of 5,970, which has increased by 2.0% over the past 5 years. Watertown, MN is a moderately popular place for families, as children make up 22.3% of the population. The area has a poorly educated workforce, with 23.0% of adult residents holding a bachelor’s degree or higher. There are some residents working remotely, with 19.0% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 5,970 | 2.0% |
% Under 18 | 22.3% | -22.0% |
% Seniors | 13.1% | 1.6% |
% WFH | 19.0% | 163.9% |
% w/ College Degree | 23.0% | -6.5% |
As of the latest ACS Survey released in 2023, Watertown, MN is a predominantly white area, with 93.7% of the population identifying as white. The white population has shrunk by 3.3% in the last 5 years. The second most common race or ethnicity in Watertown, MN is hispanic, making up 2.1% of the population. Foreign-born residents account for 1.2% of the population in Watertown, MN, and this percentage has decreased by 25.0% as of the ACS Survey 5 years prior, suggesting fewer immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 93.7% | -3.3% |
% Black | 0.2% | ∞% |
% Hispanic | 2.1% | 16.7% |
% Asian | 0.7% | ∞% |
% Foreign Born | 1.2% | -25.0% |
Mortgage and Risk — Watertown, MN
According to HUD data as of 2023, there were 139 mortgage originations in Watertown, MN, of which 87.0% of loans were conventional mortgages. The average loan-to-value was 65.0%, with 27.0% above 90% LTV (very high). This implies large mortgage risk in Watertown, MN. Investor activity is low, as 2.0% of loans were by investors. 10.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 139 |
% Conventional Loans | 87.0% |
% Government Loans | 13.0% |
% Investor Loans | 2.0% |
% Second Loans | 1.0% |
% Cash Out Refinance | 10.0% |
Loan Activity
Rentals and Section 8 — Watertown, MN
Watertown, MN lacks sufficient Section 8 program data for analysis.
Section 8 Market Size
Total Units under HUD | 3 |
Total Units Section 8 | 2 |
% Rentals under Section 8 | 0.9% |
% Occupied Section 8 | N/A |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | N/A | N/A | $1,200 |
| 2 Bedroom | N/A | N/A | $1,460 |
| 3 Bedroom | N/A | N/A | $1,970 |
| 4 Bedroom | -$210 | $2,450 | $2,240 |
Affordability — Watertown, MN
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 4 |
| Median Home Price | $374,000 |
| Median Household Income | $92,300 |