Minneapolis

MNMinneapolis–Saint Paul

Real Estate Market Analysis

Q3 2025 Report
$359,091 (June 2025)[3]
Median Home Price
approximately 425,000 (city), 3.7 million (Twin Cities metro area)
Population
$84,000 (metro area, 2024 estimate—supplemented from own knowledge)
Median Income
Minneapolis Public Schools rated average (C+ to B-), with some highly rated magnet and charter schools (GreatSchools 2024—supplemented from own knowledge)
School District Rating

Market Overview

Property Values

$359,091 (June 2025)[3]
Median Home Price
$206 (June 2025)[3]
Price per Sq Ft
Up 3.9% year-over-year (June 2025)[3]
YoY Change

Market Performance

Days on Market14 days (average to pending)[4]
Market TypeTechnically still a seller’s market, but with less pressure and more options for buyers[1]
Months of Supply2–3 months (varies by county; Carver County nearly 3 months, Anoka and Ramsey under 2)[1]

Sales Activity

Sales Volume4,684 homes for sale in June 2025, up 3.4% from May 2025[3]
Metro AreaMinneapolis–Saint Paul
Populationapproximately 425,000 (city), 3.7 million (Twin Cities metro area)

Economic Indicators

Employment & Growth

Unemployment Rate3.2% (Twin Cities metro, May 2025, per latest BLS data—supplemented from own knowledge)
Job Growth Rate1.4% year-over-year (2024–2025, metro area—supplemented from own knowledge)
Median Household Income$84,000 (metro area, 2024 estimate—supplemented from own knowledge)

Major Employers

  • Target Corporation
  • UnitedHealth Group
  • 3M
  • Best Buy
  • U.S. Bank
  • Medtronic

Demographics

approximately 425,000 (city), 3.7 million (Twin Cities metro area)
Population
32.5 years (city), 37.2 years (metro area—supplemented from own knowledge)
Median Age
Stable to modest growth; metro area up ~0.5% year-over-year (2024–2025—supplemented from own knowledge)
Population Growth
48% of adults hold a bachelor’s degree or higher (metro area—supplemented from own knowledge)
Education Level

Family Composition

Mix of young professionals, families, and retirees; 27% of households with children under 18 (metro—supplemented from own knowledge)

Key Industries

HealthcareFinanceRetailTechnologyManufacturing

Education

School District

Minneapolis Public Schools rated average (C+ to B-), with some highly rated magnet and charter schools (GreatSchools 2024—supplemented from own knowledge)
District Rating

Top Schools

  • Southwest High School
  • Washburn High School
  • Lake Harriet Community School

Higher Education

  • University of Minnesota–Twin Cities
  • Augsburg University
  • Minneapolis College of Art and Design

Infrastructure & Development

Major Projects

  • Southwest Light Rail Transit (Green Line Extension, opening 2025–2026)
  • Upper Harbor Terminal redevelopment

Transportation

  • Light rail expansion
  • Bus rapid transit upgrades
  • Highway modernization projects

Planned Developments

  • Mixed-use developments in North Loop and Uptown
  • Affordable housing initiatives

Lifestyle & Amenities

Recreation

  • Chain of Lakes Regional Park
  • Mississippi River trails
  • Minnehaha Falls

Dining & Entertainment

  • North Loop restaurants
  • Uptown nightlife
  • Downtown theaters

Cultural Attractions

  • Walker Art Center
  • Minneapolis Institute of Art
  • Guthrie Theater

Investment Analysis

Investment Opportunities

  • Rising inventory offers more choices for buyers and investors[1][3]
  • Steady appreciation (1.5–3.9% YoY)[3][4]
  • Strong rental demand near universities and downtown

Growth Outlook

Moderate growth expected; market stabilizing with more balanced conditions[1][2]

Market Risks

  • Affordability concerns due to higher mortgage payments[2]
  • Potential for further inventory increases to soften prices
  • Interest rate volatility

Rental Market

Strong demand, especially for multifamily and near employment centers; rent growth moderating but vacancy remains low (supplemented from own knowledge)

Marketing Intelligence

Target Demographics

  • Millennial and Gen Z first-time buyers
  • Young families
  • Relocating professionals

Marketing Channels

  • Zillow, Redfin, Realtor.com
  • Facebook and Instagram ads
  • Local real estate newsletters

Pricing Strategies

List slightly below recent comps to drive interest in a rising inventory environment

Common Objections & Response Strategies

Objection: Monthly payments are too high with current rates

Response Strategy:

Highlight lower rates compared to early 2024, suggest rate buydowns or adjustable-rate options, and emphasize long-term appreciation potential

Objection: Too much competition from other buyers

Response Strategy:

Show increased inventory and longer days on market, giving buyers more leverage and time

Objection: Uncertainty about future home values

Response Strategy:

Share recent data showing steady appreciation and Minneapolis’s strong economic fundamentals

Professional Recommendations

1

Educate buyers on increased inventory and negotiation opportunities

2

Advise sellers to price competitively and invest in staging

3

Highlight Minneapolis’s economic stability and lifestyle amenities

4

Leverage digital marketing and social media for maximum exposure

5

Monitor mortgage rate trends and advise clients accordingly

6

Target marketing to first-time buyers and relocating professionals

Competitive Analysis

Comparable Markets

  • Denver, CO
  • Portland, OR
  • Milwaukee, WI

Market Positioning

Minneapolis is positioned as an affordable, high-quality alternative to larger coastal cities, with steady appreciation and strong rental demand

Competitive Advantages

  • Lower median home price than coastal metros
  • Strong job market and diverse economy
  • High quality of life and amenities

Price Comparison

Median home price ($359,091) is lower than Denver ($650,000) and Portland ($525,000), but higher than Milwaukee ($295,000) (supplemented from own knowledge)

Investment Metrics

5.2% average for multifamily (2025 metro estimate—supplemented from own knowledge)
Cap Rates
5.5–6.2% gross yield for single-family rentals (2025 estimate—supplemented from own knowledge)
Rental Yields
17–19 (metro average, 2025—supplemented from own knowledge)
Price-to-Rent
Positive cash flow possible in select neighborhoods, especially with 20%+ down payment and value-add opportunities
Cash Flow
1.5–4% annual appreciation projected for 2025[3][4]
Appreciation

Buyer Journey Insights

First-Time Buyers

Facing affordability challenges but benefiting from more inventory and less competition; down payment assistance programs available

Move-Up Buyers

More options for trading up, but must price current home competitively

Downsizers

Can take advantage of strong demand for starter homes; more choices in condos/townhomes

Investors

Opportunities in multifamily and single-family rentals; focus on neighborhoods near transit and universities

Relocators

Attracted by job growth, affordability, and amenities; often prioritize proximity to major employers and schools

This city analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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