Minneapolis Housing Market: Trends & Prices

On this page:

    Minneapolis Real Estate Market Overview

    (Last Updated – 11/2021)

    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 430,000 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.

    $325,000

    Median Sale Price

    $190

    Avg. Price Per Square Foot

    23 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 recent 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. So time will tell if the council enacts rent control and what it will look like.

    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 $2,470 in property taxes annually on average. In Minneapolis, America’s 46th largest city and growing, the average property tax bill is $3,142 a year.

    While the median Minneapolis home sale price runs higher than the typical U.S. home value, which Zillow puts at $308,220, 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 jumped 8.3% since late 2020. Because of the limited supply of homes, the Minneapolis housing market remains a seller’s market, and real estate experts do not expect the low inventory to change dramatically over the next 12 months.

    In the meantime, if you see a property in Minneapolis that you love, it could be the right time to scoop it up, especially given how low interest rates remain and Federal Reserve policymakers’ inclination to raise rates in 2022.

    Housing market forecast chart

    *Graph taken from Zillow as of 11/2021

    Demographics of the Minneapolis Market

    Minneapolis is a diverse and exciting city with a lot to offer across its 53.97 square miles. Over 429,000 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: $62,583

    Median Age: 32.3

    College Educated: 50.4%

    Homeowners: 47.2%

    Married: 36%

    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:

    8,067

    Median Age:

    37

    Housing Units:

    3,559

    Bike Score:

    70

    Walk Score:

    64

    Transit Score:

    41

    Average Household Income:

    $140,357

    Linden Hills Housing Market

    Home prices leapt nearly 60% in a year. Homes for sale typically receive multiple offers and sell within around 27 days. Hot properties can be gone in two weeks.

    Homes generally sell for only 2% below their list price.


    Median Sale Price

    $849,000

    Average Price Per Square Foot

    $309


    Ericsson

    With over 1,500 family households (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:

    7,324

    Median Age:

    36

    Housing Units:

    3,074

    Bike Score:

    85

    Walk Score:

    66

    Transit Score:

    59

    Average Household Income:

    $79,924

    Ericsson Housing Market

    Homebuyers may need to act quickly if they find a home they love in Ericsson.

    Many homes in the area receive multiple offers, some with waived contingencies, and sell in about 11 days. Even though homes sell at roughly 7% above list price, prices in this area went down over 16% since last year, so now could be a good time to find your dream home at a decent price.


    Sale Price

    $272,000

    Average Price Per Square Foot

    $222


    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:

    6,730

    Median Age:

    31.9

    Housing Units:

    4,398

    Bike Score:

    91

    Walk Score:

    83

    Transit Score:

    87

    Average Household Income:

    $103,179

    North Loop Housing Market

    North Loop home prices took a dip in the past year, falling by roughly 13%. Redfin considers this area to be “somewhat competitive,” with houses selling in approximately 34 days at 2% below list price.


    Sale Price

    $303,000

    Average Price Per Square Ft.

    $331


    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:

    16,784

    Median Age:

    34.2

    Housing Units:

    12,180

    Bike Score:

    87

    Walk Score:

    90

    Transit Score:

    85

    Average Household Income:

    $83,508

    Loring Park Housing Market

    Homebuyers who are looking for a deal may want to check out Loring Park. The housing prices in this neighborhood dropped by 5.5% in the past year.

    Homes sell for about 3% under list price and stay on the market for 90 days, so negotiating may be an option for thrifty homebuyers.


    Sale Price

    $213,000

    Average Price Per Square Ft.

    $217


    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:

    6,849

    Median Age:

    31

    Housing Units:

    3,552

    Bike Score:

    94

    Walk Score:

    93

    Transit Score:

    60

    Average Household Income:

    $85,516

    Uptown Housing Market

    The Uptown market is considered to be not very competitive, and, in fact, saw housing prices drop over 46% in the past year. This gives buyers more wiggle room than in other popular Minneapolis neighborhoods.

    Multiple offers are rare. Homes typically sell for 3% below their list price in around 60 days.


    Sale Price

    $160,000

    Average Price Per Square Foot

    $204



    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.

    Learn more


    SoFi Loan Products
    SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC), and by SoFi Lending Corp. NMLS #1121636 , a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law (License # 6054612) and by other states. For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

    SoFi Mortgages
    Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

    Third-Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
    SOHL20010