Back to Market Intelligence Directory

Zip Code 55423

Richfield, MN • Hennepin County

Real Estate Market Analysis

Q3 2025 Report
$360,000–$398,900 (metro median, Apr–Jun 2025)
Median Home Value
~36,000
Population
$68,000 (est.)
Median Income
Average (C+ to B, GreatSchools 2025)
School District Rating

Market Statistics

Property Values

$360,000–$398,900 (metro median, Apr–Jun 2025)
Median Home Value
$1,500–$1,800 (est. for Richfield, 2025)
Median Rent
$220–$250 (est. for Richfield, 2025)
Price per Sq Ft

Market Performance

Home Appreciation3.0%–3.5% year-over-year (metro)
Market VelocityMedian days on market: 22–50 (metro, May–Apr 2025); inventory up 3.4% MoM (Jun 2025)
Foreclosure RateLow (metro area remains stable, 2025)

Area Information

Area Size~7 sq mi
CountyHennepin
Primary CityRichfield

Housing Profile

Housing Statistics

Total Housing Units~15,000 (est.)
Owner Occupied~60%
Rental Properties~40%
Vacant Units~4%
New ConstructionLimited, mostly infill and small multi-family

Housing Types

Single-family homesDuplexesSmall apartment buildingsTownhomes

Demographics

~36,000
Population
36
Median Age
$68,000 (est.)
Median Income
~96% (metro unemployment ~4%)
Employment Rate
High school grad+: 90%; Bachelor’s+: 38%
Education Levels
Mix of families, singles, and retirees; diverse households
Family Composition

Education Quality

School District Performance

Average (C+ to B, GreatSchools 2025)
District Rating
School DistrictRichfield Public School District
Test ScoresSlightly below MN average, improving trend
Graduation Rates~80%

Schools in Area

  • Richfield High School
  • Richfield STEM School
  • Sheridan Hills Elementary

Economic Factors

Employment & Business

Job GrowthStable, moderate growth (metro +1.5% YoY)
Unemployment Rate~4% (metro)
Business EnvironmentSupportive for small business, strong retail presence
Commercial ActivityActive along I-494, Penn Ave, and Lyndale Ave

Major Employers

  • Best Buy HQ (adjacent)
  • City of Richfield
  • Healthcare (M Health Fairview, Allina)
  • Retail (Target, Home Depot)

Infrastructure & Quality of Life

Infrastructure

Transportation Access

  • • I-494
  • • I-35W
  • • Metro Transit bus routes
  • • Proximity to MSP Airport

Utilities & Services

  • • Xcel Energy
  • • CenterPoint Energy
  • • City water/sewer

Quality of Life

Safety & Environment

Moderate, below Minneapolis average; property crime higher than violent crime

Good, urban-suburban mix, ample green space

Healthcare Access

  • • M Health Fairview Southdale
  • • Allina Health clinics

Development Trends

Planned Developments

  • Mixed-use redevelopment at Lyndale Ave
  • Affordable housing initiatives

Infrastructure Projects

  • • Road resurfacing (Penn Ave, 66th St)
  • • Stormwater upgrades

Investment Outlook

Growth Outlook

Steady, moderate growth; focus on infill and revitalization

Investment Opportunities

  • • Small multi-family conversions
  • • Value-add single-family flips
  • • Retail/office repositioning

Marketing Intelligence

Target Demographics

  • First-time buyers
  • Young families
  • Downsizers/retirees
  • Investors

Competitive Advantages

  • Central location
  • Diverse housing stock
  • Strong community identity

Pricing Strategies

List near market value; price competitively for updated homes

Common Objections & Response Strategies

Objection: Older housing stock, dated interiors

Response Strategy:

Highlight renovation potential, solid construction, and value pricing

Objection: School ratings not top tier

Response Strategy:

Emphasize improving trends, community support, and alternative education options

Objection: Proximity to highways/airport (noise)

Response Strategy:

Showcase upgraded windows, quiet neighborhoods, and easy commute benefits

Professional Recommendations

1

Focus on updated listings and highlight renovation potential

2

Leverage community events and local amenities in marketing

3

Educate buyers on financing options and local grant programs

4

Network with local employers for relocation leads

5

Monitor zoning and development updates for new opportunities

Competitive Analysis

Comparable Markets

  • Edina 55424/55435
  • South Minneapolis 55419
  • Bloomington 55420

Market Positioning

Affordable, accessible, community-focused alternative to pricier suburbs

Competitive Advantages

  • Lower price point than Edina
  • Better access to highways than South Minneapolis

Price Comparison

~10–20% below Edina, ~5% below South Minneapolis

Investment Metrics

5.5%–6.5% (multi-family, 2025)
Cap Rates
5%–6% gross yield
Rental Yields
~17–19
Price-to-Rent
Positive for well-managed duplexes/triplexes
Cash Flow
3%–4% annually (2025–2027)
Appreciation

Buyer Journey Insights

First-Time Buyers

Strong inventory of affordable homes, down payment assistance available

Move-Up Buyers

Options for larger homes, but limited new construction

Downsizers

Appealing ranches and townhomes, walkable amenities

Investors

Solid rental demand, value-add opportunities in small multi-family

Relocators

Central location, easy access to jobs and airport

This zip code 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.

Related Market Intelligence

Explore connected markets and opportunities

Explore This Area

Minneapolis, MN

city

Same metro area

$400,000

Uptown in Minneapolis, MN

neighborhood

Same metro area

$500,000

North Loop in Minneapolis, MN

neighborhood

Same metro area

$600,000

Nearby Areas

Linden Hills in Minneapolis, MN

neighborhood

3 miles away

$675,000

Kingfield in Minneapolis, MN

neighborhood

3 miles away

$550,000

Similar Markets

55432 (MN)

zip_code

Similar market (93% price match)

$325,000

Minneapolis, MN

city

Similar market (86% price match)

$400,000