Land and housing are driving rural wealth growth

In the most rural Minnesota counties, rising land values account for more than half of all new wealth

In our last snapshot, we showed that wealth across Minnesota grew by 38% between 2021 and 2024, with the largest percent of growth happening in rural counties. What is driving that rural surge? In large part, the answer is soaring land and housing values.

For many rural households, land is wealth. Unlike a stock portfolio or a retirement account, land and housing are fixed in place. As its value rises, so does the wealth of the community that holds it.

Property values saw the greatest growth in the most rural counties

Using county-level data from the Minnesota Department of Revenue on Estimated Market Value (EMV) of property, we examined real property value changes across Minnesota between 2021 and 2024. The statewide total market value of property grew 35% during the three year period from $805 billion to $1.08 trillion. This reinforces the pattern seen in the broader wealth data. While most urban and metropolitan counties hold the largest absolute value — due to the highest density of commercial, residential, and high-value properties — rural counties are growing fastest.

To better understand the geographic variation, Minnesota counties are grouped below by their Rural-Urban Continuum Code (RUCC), where “1” represents the most metropolitan counties (e.g., Hennepin and Ramsey counties) and “9” represents the most rural.

Figure 1: Estimated Market Value of Property by Rural-Urban Continuum Code, 2021-2024

Rural property values grew at nearly twice the metro rate

Figure 2: Percent change in Property Market Value by Rural-Urban Continuum Code, 2021-2024

For the most rural and non-metropolitan counties (Codes 7, 8, and 9), real property values often constitute the largest component of both household and community wealth. Because property values reflect both structures and land, the relatively strong growth observed in rural areas is often driven by the rapid appreciation of agricultural and undeveloped land. As a result, property values serve as a key indicator of local wealth potential, regardless of whether the ownership is residential or non-residential. In the most rural counties, land appreciation accounts for most new wealth.

Figure 3 isolates and quantifies the contribution of real property appreciation to the overall household wealth growth in Minnesota between 2021 and 2024. With home equity identified as the primary driver of wealth growth, the figure highlights where this growth was most pronounced geographically. In the most metropolitan areas, about one-third of the wealth growth came from rising property values. In the most rural counties (RUCC 8 and 9), that figure rises to 55 and 70 percent, respectively.

Figure 3: Property appreciation as a share of Total Net Wealth (TNW) by Rural-Urban Continuum Code (RUCC), 2021-2024

These increases are not limited to open-country farmland but extend into small towns, reflecting broader housing shortages across rural areas. Demand for rural living accelerated during the pandemic, further driving up home values in these communities.

More than half of seasonal property owners plan to become full-time residents

One important nuance in how property wealth is measured: wealth is counted where the owner lives, not where the property sits. For example, a Hennepin County resident who owns a seasonal property in Aitkin County contributes that property’s value to Hennepin’s wealth totals, not Aitkin’s. While this wealth resides in Hennepin County, it can be recaptured by Aitkin.

University of Minnesota Extension research offers an encouraging counterpoint, with 56 percent of second homeowners in Minnesota planning to transition permanently to their seasonal property following retirement. When that happens, the wealth tied to that property moves with them from the metro ledger to the rural one. Land that was once counted elsewhere becomes a local asset, alongside the new full-time resident who owns it.

What communities can do with this information

Rising land and housing values are generating real wealth in rural Minnesota. This wealth offers potential for rural communities to find ways to ensure it remains local through community retention and investment strategies, strengthening these communities and supporting the next generation. Realizing that potential requires communities to recognize and understand the assets they hold.

Foundations, nonprofits, and community leaders can use data like these to set realistic giving goals, engage donors and financial advisors in planned giving conversations, and make a compelling case for legacy gifts rooted in local property wealth.