Are home prices in Minneapolis and the surrounding Twin Cities suburbs on the rise?
Yes — though the growth is modest and varies by area, the overall trend across the Twin Cities metro, including Minneapolis and its suburbs, is upward for 2025 — with important nuances you should know if you’re buying or selling.
Minneapolis Home Prices: Steady Growth in the City
Recent data shows that home values in Minneapolis continue to climb. The average home value in the city sits in the low $320,000s, up a few percentage points year over year. Some reports show median sale prices increasing at a slightly faster pace, reflecting steady buyer demand and limited inventory.
While price growth isn’t as sharp as it was during the post-pandemic surge, it’s still significant enough to signal a resilient urban market. Homes that are move-in ready and well-located continue to draw strong attention and multiple offers.
The Twin Cities Metro and Suburbs: A Wider View
When you expand the lens to include the broader metro area — from Eagan and Apple Valley to Eden Prairie and Maple Grove — the trend remains consistent: home prices are rising, but at a measured rate. The Twin Cities’ median sale price has hovered just under $400,000 for much of 2025, marking a modest yet meaningful year-over-year increase.
Earlier this year, the metro’s median price even surpassed the $400,000 mark for the first time. This shows that while affordability pressures persist, buyer demand remains solid — especially for well-maintained homes in desirable suburban areas.
What’s Driving Home Price Growth?
Several key factors continue to push prices upward across Minneapolis and its suburbs:
- Limited inventory: The number of homes for sale remains low, keeping competition strong among buyers.
- Steady demand: Many homeowners are staying put due to low existing mortgage rates, while new buyers continue to enter the market.
- Lifestyle preferences: Some buyers are returning to the city for convenience and culture, while others seek space and newer builds in the suburbs.
- Rising costs: Building materials, labor, and land costs have all gone up — and that adds upward pressure to resale prices.
Together, these elements create a dynamic where price growth may not be rapid, but it remains consistent and well-supported.
Why the Trend Varies by Area
Not all parts of the Twin Cities are experiencing the same rate of appreciation. In Minneapolis, some neighborhoods have seen smaller increases — around two to three percent — while select areas with strong amenities or new development have climbed more sharply.
In the suburbs, appreciation rates vary even more. Homes in Eagan, Lakeville, and Woodbury are seeing steady mid-single-digit gains, while outer-ring communities may see slightly slower movement due to inventory fluctuations and commute considerations.
Mortgage rates also continue to influence buyer behavior. Higher borrowing costs can moderate price growth, yet demand remains strong enough to keep values from sliding.
What It Means for Buyers and Sellers
For sellers, 2025 remains a favorable market. Values are higher than a year ago, and well-priced homes continue to attract attention quickly. While the frenzied bidding wars of recent years have cooled, motivated buyers are still ready to act.
For buyers, patience and strategy matter. Prices are rising, but not uncontrollably — giving you room to negotiate and find value, especially in neighborhoods just outside the highest-demand zones. Working with an experienced local agent can help you identify where price trends are leveling off versus accelerating.
The Bottom Line
Yes — home prices in Minneapolis and its suburbs are rising, but in a balanced, sustainable way. For sellers, that means continued opportunity to capture equity. For buyers, it means the window for stability remains open — but not indefinitely.
Overall, the 2025 Twin Cities market reflects a return to fundamentals: strong demand, tight inventory, and gradual appreciation rather than rapid spikes. Whether you’re planning to move soon or simply keeping an eye on your home’s value, now is the time to stay informed and strategic about your next step.
If you’d like to review current comparable sales, discuss how these trends apply to your neighborhood in Eagan or another Twin Cities suburb, or map out a plan to buy or sell in the next few months, I’d be happy to help. Let’s talk about your goals and build a plan that fits your timeline and budget.
Blog written by Lana Kalinowski, REALTOR® — Edina Realty, Eagan & Twin Cities 651-706-6661
Schedule a consultation with me today and let’s align your goals with real-world market conditions.
Attribution: Data and insights drawn from Minnesota Realtors® reports, Redfin, Zillow and public housing-market analyses.
