In the early months of the COVID-19 pandemic, U.S. home sales slumped. Since then, however, the market has come roaring back — and rising demand, in conjunction with a relatively low supply of housing, has caused home values to surge.

Between January 2020 and January 2021, the typical single-family American home appreciated in value from $246,563 to $269,039, a 9.1% increase. Of course, housing markets also respond more to local forces, and not all parts of the country followed the national pattern.

In Owatonna, a city of about 25,700 residents in Minnesota’s Steele County, home values have actually declined in recent months. The typical single family home in Owatonna was worth $201,714 as of January 2021, 0.3% less than what it was worth one year ago.

One factor that can contribute to falling home prices at a local level is reduced demand. And lower demand for housing is often precipitated by population decline. However, according to the most recent available Census data, over the last one-year period, Owatonna’s population remained effectively unchanged .

Nationwide, the typical home value is about 4.3 times higher than the median household income of $62,843. In Owatonna, housing is generally more affordable. The typical single-family home value is about 3.2 times higher than the local median household income of $62,642.

Here are the five communities with populations of at least 2,000 in Minnesota where home values fell the most in the last year.

This is How Much Home You Can Buy For 200K in Every State

Place:	1-yr. decrease in typical home value:	Current typical home value:	1-yr. pop. change:	Median household income:
Baxter	-14.8%	$246,937	1.4%	$71,220
Hoyt Lakes	-4.5%	$75,337	-0.3%	$54,063
Crosby	-0.8%	$136,018	-2.7%	$42,717
Benson	-0.5%	$113,623	-0.3%	$41,063
Owatonna	-0.3%	$201,714	0.1%	$62,642