First-Time Buyers in Fargo-Moorhead Turn to Older Homes for Affordability

By Christopher Leigh | July 29, 2025

In Fargo-Moorhead, first-time homebuyers are shifting away from pricey new constructions and embracing older homes in established neighborhoods like Clara Barton and Hawthorne. With median home prices at $305,000 and high mortgage rates, smaller, older homes—often under 1,500 square feet—are becoming the new starter homes, offering affordability and character. A recent Cotality report notes a national trend toward older homes, driven by lower costs and larger lots. In our region, these homes provide unique charm and investment potential, especially with local tax incentives. Discover why older homes are a smart choice and explore Fargo-Moorhead listings with Team Vision Realty’s expert guidance.

Why Older Homes Are the New Starter Homes in Fargo-Moorhead

The Fargo-Moorhead housing market mirrors national trends, where high costs and limited supply push buyers toward older homes. According to Cotality, existing home sales dropped 2% year-over-year, while new-home sales fell 3.43%. In Fargo-Moorhead, older homes (built pre-1980) have a median price of $250,000, compared to $400,000 for new builds. These homes, often under 1,500 square feet, appeal to first-time buyers for affordability and lifestyle. Neighborhoods like South Fargo’s Clara Barton offer mature trees, larger lots, and proximity to schools like Carl Ben Eielson (B+ Niche rating), unlike newer developments with smaller lots.

Expert Tip: “Older homes in Fargo-Moorhead provide charm, larger lots, and lower price tags, making them ideal for first-time buyers,” says Christopher Leigh of Team Vision Realty. “They’re a gateway to homeownership in a competitive market.”

Benefits of Choosing Older Homes in Fargo-Moorhead

Here’s why older homes are gaining popularity for first-time buyers in Fargo-Moorhead, aligned with fair housing principles ensuring equal opportunity:

1. Affordability and Lower Taxes

Older homes cost less upfront—$250,000 median versus $400,000 for new builds—and often have lower property taxes due to assessed values based on purchase price. For example, a 1,200-square-foot 1950s home in Hawthorne, recently sold for $235,000, well below the national median of $440,950. Programs like Moorhead’s Renaissance Zone offer tax exemptions for renovations, saving thousands. Use our Mortgage Calculator to plan budgets.

What to Do:

• Search for homes built before 1980 at Fargo-Moorhead listings.

• Explore tax incentives at City of Moorhead.

• Work with lenders for programs like ND First-Time Home Buyer to reduce costs.

Expert Tip: “Affordability is key in Fargo-Moorhead. Older homes with tax breaks make homeownership accessible,” says Christopher.

2. Character and Larger Lots

Older homes in neighborhoods like Fargo’s Roosevelt or Moorhead’s Village Green boast unique features—hardwood floors, solid oak framing, and larger lots (often 8,000+ square feet) compared to new builds’ 5,000-square-foot lots. Buyers value established areas with mature landscaping over uniform new developments. A 1960s fixer-upper in Roosevelt sold for $245,000, offering space for personalization without HOA restrictions.

What to Do:

• Tour older neighborhoods for character-rich homes.

• Check for structural integrity with a home inspection—Team Vision Realty can recommend trusted inspectors.

• Consider gradual upgrades to preserve charm while modernizing.

Expert Tip: “Fargo-Moorhead’s older homes offer unique aesthetics and room to grow, unlike cookie-cutter new builds,” says Christopher.

3. Investment Potential with Renovations

Older homes are often fixer-uppers, selling 20–30% below market value, like a 1,100-square-foot 1955 home in Clara Barton listed at $225,000. Renovations can boost value, especially with North Dakota’s stable 2025 market (prices up 3% annually). Cosmetic updates—new paint, updated kitchens—yield high returns without new-build premiums. Local regulations, including fair housing laws, ensure equal access to these opportunities.

What to Do:

• Explore fixer-uppers at Fargo-Moorhead listings.

• Budget for renovations using the 50/30/20 rule; a $250,000 home fits a $60,000 income.

• Partner with contractors for cost-effective upgrades, vetted by Team Vision Realty.

Expert Tip: “Fixer-uppers in Fargo-Moorhead are investment gems. Renovate smartly to build equity,” says Christopher.

Potential Challenges and Solutions

Older homes may need updates, but Fargo-Moorhead’s climate demands attention to heating and insulation. Outdated systems (e.g., 1960s HVAC) can increase costs, but grants like Minnesota’s Energy Efficiency Program offset upgrades. 

What to Do:

• Conduct a thorough inspection to identify repair needs.

• Apply for energy grants at Minnesota Energy Resources.

• Work with Team Vision Realty to find move-in-ready older homes.

Getting Started with Older Homes in Fargo-Moorhead

Ready to find your starter home? Here’s how:

• Explore Listings: Browse pre-1980 homes for affordability.

• Assess Budget: A $250,000 home aligns with a $60,000 income under fair lending practices.

• Leverage Incentives: Apply for tax exemptions or first-time buyer programs.

• Tour Neighborhoods: Visit Clara Barton or Roosevelt for charm and value.

• Partner with Experts: Team Vision Realty ensures fair, transparent guidance.

Conclusion

Older homes in Fargo-Moorhead’s established neighborhoods offer first-time buyers affordability, character, and investment potential. With median prices at $250,000 and tax incentives, they’re ideal starter homes in a stable 2025 market. Start your journey with Fargo-Moorhead listings or contact Christopher Leigh at +1(701) 715-4747 for personalized advice, compliant with fair housing standards.

Contact Vision Realty in Fargo-Moorhead

Christopher Leigh, Broker
+1(701) 715-4747 | chris@visionrealty.us
509 Front St, Hawley, MN 56549