The story of this market
The typical home in ZIP 55616 sells for about $344,950, or $232 per square foot.
Prices are up +42.3% from a year ago, so sellers still have some momentum. Homes take about 84 days to sell, which is slow. HUD's fair market rent for a two-bedroom is $1,450 a month.
ZIP 55616 — Two Harbors
The 55616 housing market is experiencing significant growth, with a 42.3% year-over-year increase in median listing prices as of July 2026. This surge is driven by high demand for recreational properties and a permanent shift toward North Shore living. While inventory remains relatively tight, the market is seeing increased interest from both local buyers and those relocating from urban centers.
This ZIP is ideal for outdoor enthusiasts, remote workers, and retirees seeking a scenic, quiet lifestyle, as well as investors looking for vacation rental opportunities.
Median prices moved up 42.3% year over year.
Homes spend a median of 84 days on market with 6.1 months of supply — a balanced-paced market.
12% of listings have cut prices · homes sell at 97.5% of asking — demand is running ahead of supply.
no recorded foreclosure-ledger notices (0.0 per 10,000 residents) · unemployment 3.8% · poverty 7.2% — a stable, low-distress profile.
Researched annual trajectory for this ZIP, from published historical series
Solid: researched ten-year history · dotted: 1 / 3 / 5-year projection extended from the historical 9.4%/yr trend — a deterministic estimate, not a published forecast or guarantee.
Median annual property tax paid on this ZIP's residential parcels
Solid: researched ten-year history · dotted: 1 / 3 / 5-year projection extended from the historical 6.0%/yr trend — a deterministic estimate, not a published forecast or guarantee.
versus the prior ACS vintage
net influx — more people moved in than out
ZCTA 55616, Minnesota
Crime rates in Two Harbors are generally low and stable, consistent with small-town North Shore communities and significantly lower than regional urban centers like Duluth.
The area is served by Lake Superior School District, which maintains a solid reputation for student performance and community-focused educational programming.
The region faces moderate wildfire risk in forested areas and potential wind/ice damage along the Lake Superior shoreline, with standard insurance coverage typically available.
Economic momentum is driven by tourism, outdoor recreation, and a growing trend of remote workers relocating to the North Shore, supported by local small-business development.
Composed from the ARED governance burden registry — tier-native tax structure (state + county + city + special districts), never averaged. State (Minnesota) — Condominium Unit Taxation: Each unit constitutes a separate parcel for tax purposes. If a declaration is recorded at least 30 days before a tax installment is due, the taxing authority must split the taxes among the units. State (Minnesota) — Minnesota General Property Tax Classification System: Property tax is calculated by applying a class rate to the parcel's estimated market value to determine tax capacity, then multiplying by the local tax rate. For residential homesteads (Class 1a), the rate is 1.00% for the first $500,000 of market value and 1.
Commuting is primarily car-dependent, with Highway 61 serving as the main artery for travel toward the employment hub of Duluth, typically a 25-30 minute drive.
The area is a premier destination for outdoor recreation, featuring immediate access to Lake Superior, numerous state parks, hiking trails, and local golf courses.
The rental market is tight with limited inventory, heavily influenced by seasonal demand and a significant presence of short-term vacation rentals.
The economy is anchored by tourism, healthcare, and local government services, with a growing segment of remote-work professionals.
Transportation is dominated by private vehicle use; public transit options are limited, primarily serving local needs within the city of Two Harbors.
Development is focused on small-scale residential infill and tourism-related commercial projects, with strict zoning to preserve the North Shore aesthetic.
The county assessor offices manage property valuations, with assessments conducted annually to reflect market changes.
Parcels are subject to Lake Superior School District levies and various county-level special service districts.
Property insurance premiums are stable but reflect the specific risks associated with proximity to Lake Superior and forested terrain.
Minnesota has seen steady domestic migration, with a notable trend of residents moving to recreational areas like the North Shore.
Minnesota is a judicial foreclosure state, requiring court action to initiate the process, which provides significant protections for homeowners.
Sellers are required to provide a comprehensive disclosure statement regarding the physical condition of the property.
Data retrieved from data.census.gov ZCTA 55616 profile.
Public schools whose reported address is in this area (NCES). Not attendance boundaries — schools that serve residents may sit outside it. Check the district's address locator for assignment. Source: NCES EDGE public school locations 2023-24.
Famous for its waterfalls and scenic hiking trails along the North Shore.
A popular public beach and harbor area in Two Harbors.
Extensive long-distance hiking trail passing through the region.
Key-figure check: no independent anchor retained yet — first-researched cycles establish the anchor baseline this pass.