Cottage Grove, MN—55016
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Cottage Grove, MN
As of Oct '25, the median home price in Cottage Grove, MN is $389,000, with a year-over-year change of 1.6%. This indicates that home prices in Cottage Grove, MN are increasing. According to Zillow, the 1-year price projection is -0.5%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $389,000 | 1.6% |
| Single Family | $392,000 | 1.8% |
| Condos | $256,000 | 0.4% |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $283,000 | 1.1% |
3 Bed | $353,000 | 2.6% |
4 Bed | $436,000 | 1.4% |
| 5 Bed | $506,000 | 0.8% |
% of Housing Stock
Rental Trends — Cottage Grove, MN
As of July '25, Rentcast reports the average rent in Cottage Grove, MN is $2,530, with a year-over-year rent change of 15.5%. Per bedroom, the median rent as of July '25 in Cottage Grove, MN is studios: $1,420, 1-bedrooms: $1,400, 2-bedrooms: $1,160, 3-bedrooms: $2,830, 4-bedrooms: $3,420. The most common rental property sizes in Cottage Grove, MN are 2-bedroom and 1-bedroom, accounting for 41.6% and 21.6% of the rental stock.
| 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 |
% of Rental Stock
Property Listings — Cottage Grove, MN
As of Oct '25, Realtor.com reports that the median days on market for a home in Cottage Grove, MN is 33. This is a decrease of 0.0% from last year, suggesting 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 38.0%, representing a large inventory and a lot of supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $463,000 | 5.0% |
Listing Count | 178 | 3.0% |
| Listings as % of Homes | 0.8% | 3.0% |
Days on Market | 33 | 0.0% |
Demographics — Cottage Grove, MN
As of the latest ACS Survey released in 2023, Cottage Grove, MN has a population of 39,900, which has increased by 11.6% over the past 5 years. Cottage Grove, MN is a popular place for families, as children make up 26.6% of the population. The area has a moderately educated workforce, with 39.2% of adult residents holding a bachelor’s degree or higher. There are some residents working remotely, with 19.4% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 39,900 | 11.6% |
% Under 18 | 26.6% | -5.3% |
% Seniors | 13.5% | 29.8% |
% WFH | 19.4% | 361.9% |
% w/ College Degree | 39.2% | 15.6% |
As of the latest ACS Survey released in 2023, Cottage Grove, MN is a predominantly white area, with 76.0% of the population identifying as white. The white population has shrunk by 5.0% in the last 5 years. The second most common race or ethnicity in Cottage Grove, MN is hispanic, making up 6.8% of the population. Foreign-born residents account for 7.8% of the population in Cottage Grove, MN, and this percentage has increased by 16.4% as of the ACS Survey 5 years prior, suggesting more immigrants are calling the area home.
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 HUD data as of 2023, there were 1092 mortgage originations in Cottage Grove, MN, of which 85.0% of loans were conventional mortgages. The average loan-to-value was 62.0%, with 32.0% above 90% LTV (very high). This implies large mortgage risk in Cottage Grove, MN. Investor activity is low, as 1.0% of loans were by investors. 8.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 1,092 |
% Conventional Loans | 85.0% |
% Government Loans | 15.0% |
% Investor Loans | 1.0% |
% Second Loans | 0.0% |
% Cash Out Refinance | 8.0% |
Loan Activity
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 more than market rent. In Cottage Grove, MN, all tracked home sizes have HUD payment amounts above market rent, suggesting strong Section 8 opportunity across the board.
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 |
|---|---|
| Home Price to Income Ratio | 3.1 |
| Median Home Price | $389,000 |
| Median Household Income | $121,000 |