Minneapolis Housing Market: Trends & Prices
Minneapolis Real Estate Market Overview
(Last Updated – 6/2023)
Nature lovers will enjoy this fun fact about Minneapolis’ parks. In 1904 a European florist, Theodore Wirth, was hired as the Minneapolis Park Board superintendent. He made a promise to build a park within six blocks of every city resident and secured the land to do so. Today, residents are still never farther than six blocks from a park.
Minneapolis has grown to a city of nearly 425,000 people in the years since Wirth left his mark, but his green legacy lives on. Make sure to stop by 759-acre Theodore Wirth Regional Park to golf, ski, bike, hike, or birdwatch. You might also want to take in the Somali Museum of Minnesota in this diverse city.
The Mini-Apple is a magnet, and most of the housing is quickly spoken for. The lowest housing vacancy rate among the 30 largest areas in the country appeared in the Minneapolis-St. Paul area (4.6% vacant), Los Angeles (4.8%), Seattle (5.2%), and Portland (5.2%), according to 2020 Census data.
Overall Minneapolis Market Trends
The real estate pros at Redfin say the Minneapolis housing market is very competitive.
Homes typically receive multiple offers, some with waived contingencies, and sell for about 1% above asking price.
$343,000
Median Sale Price
$221
Avg. Price Per Square Foot
19 days
Avg. Time on Market
Minneapolis Student Market
If you are looking to invest in rental property, Minneapolis could be a good choice. Home to 11 colleges — some of which are the largest state campuses in the country — Minneapolis has an abundant student population. The University of Minnesota, Twin Cities enrolls over 50,000 students alone, many of whom look to rent apartments off campus. In addition, there are nearly 50 colleges within a 50-mile radius of Minneapolis, with well over 200,000 enrollees.
In addition to the students looking to rent apartments, many who go to college in and around Minneapolis stay for work after graduation but can’t afford a home yet, so they must rent.
The multifamily housing market in Minneapolis got a boost not long ago, which could make buying property in the Twin Cities enticing. In 2018, the city supported the elimination of single-family zoning, legalizing up to three residential units on single-family plots. The purpose was to improve housing affordability and meet increased demand. This paves the way for more multifamily properties, allowing owners to live on their property while renting out the other units.
One possible wrinkle worth noting is the November 2021 passage of an amendment granting the Minneapolis City Council the power to enact rent control regulations. Historically, there have been no caps on rent increases in Minneapolis, and landlords did not need to justify rent hikes. The Council is working to get a proposal together for the people this year.
Minneapolis Property Taxes
Whether you are considering buying or investing in Minneapolis real estate, it’ll be good to know, of course, about property taxes. The average property tax rate is 1.33%, higher than the national average of 1.07%.According to the latest data from the U.S. Census Bureau, American households pay $2,690 in property taxes annually on average. In Minneapolis, America’s 46th largest city and growing, the average property tax bill is $3,856 a year.
While the median Minneapolis home sale price runs slightly higher than the typical U.S. home value, which Zillow puts at $339,048, there are a number of neighborhoods in Minneapolis where you can find home prices below the city’s overall average.
Minneapolis Housing Market Forecast
For those who are interested in the Minneapolis housing market, it can be helpful to review local housing market trends and forecasts.
Home values in Minneapolis dropped 2.3% over the past year. Despite this, real estate experts forecast an upward trend this year. Homes are selling close to list price, and experts predict an increase in home values, making it an encouraging market for buyers and sellers in the coming year.
If you see a property in Minneapolis that you love, it could be the right time to scoop it up, especially given the relatively fast rate at which properties go pending.
Demographics of the Minneapolis Market
Minneapolis is a diverse and exciting city with a lot to offer across its 54 square miles. Over 425,000 residents call this city home.
Before settling on a specific neighborhood in Minneapolis, it can be helpful to review some key demographics, according to the latest data.
Median Household Income: $70,099
Median Age: 32.7
College Educated: 52.6%
Homeowners: 48.1%
Married: 35.7%
Popular Minneapolis Neighborhoods
When planning a move to, or within, Minneapolis, homebuyers will have 83 residential neighborhoods to choose from. While everyone loves choices, that many options can feel a bit overwhelming.
Check out five popular Minneapolis neighborhoods that could make house hunting a bit easier.
Linden Hills
This pretty neighborhood is bordered by two of Minneapolis’ most popular lakes, Bde Maka Ska and Lake Harriet, offering plenty of water activities, such as canoeing and kayaking, and good views.
In the summer, there are free concerts and movies by the lake and in the winter families love attending the annual Lake Harriet Winter Kite Festival. A commercial hub in the neighborhood brims with cafes and indie shops that locals like to visit year-round.
Quick Facts
Population:
7,994
Median Age:
37
Housing Units:
3,484
Bike Score:
69/100
Walk Score:
65/100
Transit Score:
39/100
Average Household Income:
$155,862
Linden Hills Housing Market
Home prices dropped 5.9% in April 2023 compared to last year. Homes for sale typically receive multiple offers and sell in around 13 days. Hot properties can go pending in only 7 days.
Homes generally sell for about 1% above their list price. Linden Hills is considered a very competitive market, and home prices are high.
Median Sale Price
$617,000
Average Price Per Square Foot
$334
Ericsson
With over 1,500 family households (nearly 850 of which include children) in Ericsson, this neighborhood is a great option for raising a family.
The majority of homes here were built in 1939, meaning there are plenty of historic gems to scoop up, but newer homes are also out there for those looking for a more modern feel.
Quick Facts
Population:
7,315
Median Age:
36
Housing Units:
3,169
Bike Score:
85/100
Walk Score:
70/100
Transit Score:
57/100
Average Household Income:
$92,156
Ericsson Housing Market
Homebuyers may need to act quickly if they find a home they love in Ericsson.
Many homes in this very competitive area receive multiple offers, some with waived contingencies, and sell in about 18 days. Even though homes sell at roughly 1% above list price, prices in this area went down 12% in April 2023 compared to last year. Now could be a good time to find your dream home in this area at a decent price.
Sale Price
$375,000
Average Price Per Square Foot
$302
North Loop
Known as the Warehouse District, this progressive neighborhood has award-winning restaurants, hip bars, and indie boutiques in converted warehouses. It’s home to the Minnesota Twins.
The North Loop also offers access to a part of the Mississippi Riverfront where singles and families can get active and enjoy the views of the Minneapolis skyline.
Quick Facts
Population:
7,138
Median Age:
32.2
Housing Units:
4,796
Bike Score:
92/100
Walk Score:
84/100
Transit Score:
81/100
Average Household Income:
$124,323
North Loop Housing Market
North Loop home prices took a dip this year, falling by roughly 22.4% in April 2023 compared to last year. Redfin considers this area to be “somewhat competitive,” with houses selling in approximately 40 days at 2% below list price.
Sale Price
$330,000
Average Price Per Square Ft.
$418
Loring Park
Home to one of the largest parks in Minneapolis, the Twin Cities Gay Pride Festival, and the first Roman Catholic basilica in the United States, this unique and diverse neighborhood at the edge of downtown is mainly made up of young professionals and retired suburban homeowners.
The neighborhood welcomes a variety of lifestyles and is considered to be a great place to both live and work.
Quick Facts
Population:
16,349
Median Age:
34.1
Housing Units:
12,360
Bike Score:
86/100
Walk Score:
91/100
Transit Score:
78/100
Average Household Income:
$89,763
Loring Park Housing Market
Homebuyers who are looking for a deal may want to check out Loring Park. While the housing prices in this neighborhood rose by 10% in April 2023 compared to last year, they are still less than the average Minneapolis home price.
Homes sell for about 3% under list price and stay on the market for 144 days, so negotiating may be an option for thrifty homebuyers.
Sale Price
$248,000
Average Price Per Square Ft.
$226
Uptown
If the Uptown neighborhood sounds familiar, that’s because Prince made this area famous by referencing it in his song “Uptown.” It’s easy to see why Prince took note of Uptown, with its indie and trendy vibe, global cuisine options, and nightlife scene.
For those looking for a more relaxed experience, this neighborhood is fairly close to the breathtaking Bde Maka Ska lake.
Quick Facts
Population:
6,903
Median Age:
31
Housing Units:
3,664
Bike Score:
94/100
Walk Score:
93/100
Transit Score:
58/100
Average Household Income:
$90,856
Uptown Housing Market
The Uptown market is considered to be not very competitive, and, in fact, saw housing prices drop 68.7% in April 2023 compared to last year. This gives buyers more wiggle room than in other popular Minneapolis neighborhoods.
Multiple offers are rare. Homes typically sell for 2% below their list price in around 73 days.
Sale Price
$137,000
Average Price Per Square Foot
$206
SoFi Home Loans
It’s easy to see why Minneapolis has become so popular: enticing neighborhoods, lakes and parks, breweries, museums — something for everyone from foodies to families.
If you think Minneapolis could be your home sweet home, then you may need to consider different mortgage loans during your home buying process.
If you’re buying a home or refinancing an existing mortgage, SoFi can help you make the process as quick and painless as possible.
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