Orono joins exclusive list of ‘millon-dollar’ cities

As many home prices across the country continue to rise, Orono has joined Zillow’s ‘Million-Dollar’ cities list in 2024.

While Orono crossed the $1 million threshold in Zillow’s Home Value Index (ZHVI) metric in May, 2022, the city reached a new peak value of $1,043,372 in April. ZHVI “reflects the typical value for homes in the 35th to 65th percentile range.”

The natural increase in home values accelerated with the pandemic, as reflected by Orono’s ZHVI of $734,178.1 in March 2020.

Jeff Garthwait of Orono Realty says this increase boils down to a lack of inventory.

In a strong seller’s market, hopeful buyers find themselves on the wrong side of the supply and demand mechanism; high demand, low supply.

Current homeowners enjoy Orono’s quality amenities and location with little incentive to sell, especially given their likely low mortgage rates that they would have secured years ago. Thanks largely to inflation, current 30-year mortgage rates are typically above 7 percent, which might further scare away prospective buyers.

“Orono is a wonderful area, being around the lakes and great schools,” Garthwait said.

Orono High School consistently grades highly in college readiness and graduation rates, coming in as US News’ 11th best high school in Minnesota in 2024. Nearby Mound Westonka High School was ranked 32nd.

Despite the high average value, Garthwait noted that there are still cheaper options available in Orono. There were 16 sales under $550,000 in the last six months, including six that were for single-family homes.

Long Lake is also an option for prospective buyers looking for less expensive housing in the area. Long Lake’s ZHVI was $422,786.1 in April, up from $350,550.6 in March 2020.