$310,396Average Value$159Average Price per Sq Ft85Homes For Sale
Peaceful living and small-town charm in Steele County
Named after the Dakota word for ‘Straight River,’ Owatonna offers a scenic lifestyle with urban convenience just 65 miles southwest of the Twin Cities. “It’s the perfect blend of small-town charm and modern conveniences,” says Jen Fielding, Realtor with Home Discovery Group. “I love how easy it is to enjoy the outdoors here, whether it's biking the trails, exploring Kaplan’s Woods, or just strolling through the historic downtown.” Owatonna was first occupied by the Dakota people who used the land for hunting. English settlers followed and it was later established as a city in 1865. The completion of U.S. Interstate 35 resulted in a surge of new residents. Today, the city is home to more than 26,000 residents. Steele County has the highest concentration of manufacturing jobs in Minnesota and top employers, like Viracon, a glass fabricator, and Federated Insurance contribute to Owatonna’s focus in both manufacturing and insurance. Despite its continued growth, amenities like the Village of Yesteryear and the annual Steele County Free Fair preserve local history and maintain a larger sense of community. “Plus, with its convenient location near the Twin Cities and Rochester, you get the best of both worlds—peaceful living with big-city access when you need it,” adds Fielding.
Owatonna was established as a city in 1865.
Federated Mutual Insurance Company is a major employer in the Owatonna area.
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Competitive market, empty lots and expansive estates
Homes in Owatonna are attractive for their entry-level pricing and range of housing options that appeal to many buyers. With a median sales price of around $280,000, homes cost $140,000 less than the average property in the U.S. “The Owatonna market has experienced a 5.5% increase in median home sale prices over the past year,” says Fielding, with over a decade of real estate experience in the area. “It remains somewhat competitive, with homes typically selling for about 1% below list price.” Home prices range from as low as $100,000 for a three-bedroom manufactured home to upwards of $1 million for a six-bedroom new traditional estate with expansive acreage. Homes on the east side tend to have larger lots with more acreage, while homes to the west along the interstate are more modest. Empty lots start around $40,000 for one acre, while newly constructed single-family homes go for around $400,000 and continue to develop in new subdivisions on the outskirts of the city.
Ranch and two story homes co-mingle in most Owatonna neighborhoods.
Many of the newer ranch style homes offer three car garages in Owatonna.
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City parks and the Village of Yesteryear
Owatonna has 37 parks, 17 trails and more than 867 acres to explore year-round. Owatonna experiences all four seasons, from humid summers to winters, with an average of 44 inches of snowfall yearly. Kaplan’s Woods is in the southwest corner. It spans over 200 acres and offers views of Lake Kohlmier. It’s popular no matter the weather, with summer activities like swimming, fishing and sunbathing and winter activities like ice skating and cross-country skiing. On the east side, Mineral Springs Park offers a playground, a disc golf course and access to the 2-mile Buxton Trail along Maple Creek. Morehouse Park is another option, with a jungle gym, picnic pavilion, walking trails and a fishing pond. For a contemplative time, the Village of Yesteryear is on the south side. It’s home to 19 historical structures, including the original 19th century town hall, preserved by the Steele County Historical Society. The State School Orphanage Museum is off State Avenue, offering guided tours to honor the legacy of more than 10,000 orphans. It was one of the largest state-run orphanages in the U.S.
The original Owatonna Town Hall can be found in the Village of Yesteryear.
Kaplan Woods Park spans over 200 acres and offers several trails.
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The annual Steele County Free Fair
In August, residents can attend the annual Steele County Free Fair. It’s hosted in Owatonna at the fairgrounds off Elm Avenue. This week-long event is free to attend and features live music performances, carnival rides and food vendors to enjoy. The fair is highly anticipated and attracts over 100,000 attendees every year. It is considered the largest county fair in Minnesota.
High marks at Owatonna Public Schools
Families in Owatonna are zoned for the Owatonna Public School District, which earns an overall B rating from the educational review site Niche. It serves around 5,000 students and is ranked 14th out of 321 for athletics in Minnesota. The district has four elementary schools, one middle school and one high school. Most students attend Owatonna Senior High School, which earns a B-plus rating and is recognized as one of the top 100 public schools in Minnesota. Private options like Owatonna Christian School and St. Mary's School are also available. Those interested in pursuing higher education degrees can look to Riverland Community College, which awards associate and bachelor’s degrees in over 100 subjects.
Owatonna High School has earned an overall grade of B+ from Niche.com.
Riverland Community College has been serving students for over 80 years.
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Local grocers, boutiques and eateries in Downtown Owatonna
Most residents shop on the westside along I-35. There’s a mix of name-brand grocers like Walmart Supercenter or Aldi and big-box retailers like Target and Lowe’s Home Improvement along the thoroughfare. Local boutiques, like Hidden Rose and Urban Loft, offer a curated selection of clothing and vintage wares. Dining options vary from fast-food chains to family-owned eateries in Downtown Owatonna. Notable mentions include Torey's Restaurant & Bar, which serves all-American fare and has served the community for over 15 years.
Walmart is a major retailer in the Owatonna area.
Aldi provides Owatonna residents with plenty of healthy choices.
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Nearby healthcare and access to U.S. I-35
I-35 runs vertically on the city's west side, connecting residents to U.S. Route 14 and Hoffman Drive for trips into downtown. The Southern Minnesota Area Rural Transit (SMART) bus provides public rides throughout the city. Farther trips are accommodated by the Owatonna Degner Regional Airport, which has a flight school and is fully serviced by the city. For healthcare, the Owatonna Hospital is located in the northwest corner of the community.
Crime
According to the Owatonna Police Department, the city’s violent and property crime rates remain well below national figures. Violent crime decreased slightly in 2023, while property crimes lowered by 12%, based on FBI statistics.
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Interested in learning more about homes in this area?
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On average, homes in Owatonna, MN sell after 42 days on the market compared to the national average of 53 days. The median sale price for homes in Owatonna, MN over the last 12 months is $285,000, up 2% from the median home sale price over the previous 12 months.
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