Cottage Grove, MN—55016
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Cottage Grove, MN
As of Aug '25, the median home price in Cottage Grove, MN is $391,000, with a year-over-year change of 1.1%. This indicates that home prices in Cottage Grove, MN are increasing. According to Zillow, the 1-year price projection is -0.7%, suggesting a relatively flat housing market in the next year.
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $285,000 | 0.7% |
3 Bed | $356,000 | 2.0% |
4 Bed | $439,000 | 1.4% |
| 5 Bed | $506,000 | 0.6% |
Rental Trends — Cottage Grove, MN
As of Jul '25, the average rent in Cottage Grove, MN is $2,530, with a year-over-year rent change of 15.5%. 1-bedroom units average $1,400 (NA); 2-bedroom units average $1,160 (-35.6%); 3-bedroom units average $2,830 (31.0%); 4-bedroom units average $3,420 (17.5%)
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $2,600 | $2,530 |
| Studio Rent | $1,420 | $1,420 |
| 1 Bed Rent | $1,370 | $1,400 |
| 2 Bed Rent | $625 | $1,160 |
| 3 Bed Rent | $2,250 | $2,830 |
| 4 Bed Rent | $3,100 | $3,420 |
Property Listings — Cottage Grove, MN
As of Aug '25 and according to Realtor.com, the median days on market for a home in Cottage Grove, MN is 31. This is an decrease of 0.0% from last year. This indicates that homes are sitting on the market about the same amount of time than last year. The percentage of listed homes with a reduced price is 39.0%. This is a large percentage of inventory, suggesting a lot of supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $465,000 | 3.0% |
Listing Count | 170 | N/A |
| Listings as % of Homes | 0.8% | N/A |
Days on Market | 31 | 0.0% |
Demographics — Cottage Grove, MN
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 39,900 | 11.6% |
% Under 18 | 26.6% | -5.3% |
| % Under 5 | N/A | N/A |
% Seniors | 13.5% | 29.8% |
% WFH | 19.4% | 361.9% |
% w/ College Degree | 39.2% | 15.6% |
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 76.0% | -5.0% |
% Black | 5.7% | 18.8% |
% Hispanic | 6.8% | 54.5% |
% Asian | 6.6% | -10.8% |
% Foreign Born | 7.8% | 16.4% |
Mortgage and Risk — Cottage Grove, MN
According to the latest data from the U.S. Department of Housing and Urban Development (HUD) as of 2023, the number of mortgages originated in Cottage Grove, MN in that year was 1092. 85.0% of all primary home loans were conventional, the remainder were government-backed loans, such as FHA loans. The average loan-to-value for all loans was 62.0%. Of those, 32.0% were >90% loan to value. This is considered very high, suggesting that mortgage risk is large in Cottage Grove, MN. Investor activity in Cottage Grove, MN is low, as 1.0% of all loans are originated by investors. In 2023, 8.0% of all loans were cash-out refinances, suggesting few homeowners are actively tapping their home's equity.
Mortgages
| Metric | Zip Code Average | Metro Average | State Average |
|---|---|---|---|
Total Loan Originations | 1,092 | N/A | N/A |
% Conventional Loans | 85.0% | N/A | N/A |
% Government Loans | 15.0% | N/A | N/A |
% Investor Loans | 1.0% | N/A | N/A |
% Second Loans | 0.0% | N/A | N/A |
% Cash Out Refinance | 8.0% | N/A | N/A |
Rentals and Section 8 — Cottage Grove, MN
As of 2024, the percent of homes in Cottage Grove, MN under the Section 8 program is 4.6%. This is considered low, suggesting that the neighborhood is sparsely composed of Section 8 homes. Section 8 opportunity is good when HUD pays homeowners more than the average rental market rate for various home sizes. For each bedroom size, the average difference between HUD payments and market rents is shown in the table below.
Section 8 Market Size
Total Units under HUD | 75 |
Total Units Section 8 | 75 |
% Rentals under Section 8 | 4.6% |
% Occupied Section 8 | 84.7% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $380 | $1,370 | $1,750 |
| 2 Bedroom | $1,505 | $625 | $2,130 |
| 3 Bedroom | $590 | $2,250 | $2,840 |
| 4 Bedroom | $80 | $3,100 | $3,180 |
Affordability — Cottage Grove, MN
Home Price to Income Ratio
| Metric | Zip Code Average | Metro Average | State Average |
|---|---|---|---|
| Home Price to Income Ratio | 3.2 | N/A | N/A |
| Median Home Price | $391,000 | N/A | N/A |
| Median Household Income | $121,000 | N/A | N/A |