Duluth, MN Housing Market Forecast 2026

Will Duluth, MN Home Prices Crash in 2026?

Based only on the momentum data provided, the current conditions in Duluth, MN do not show the patterns that would point to a home price crash in 2026. The PropertyIQ Score is 90 out of 100, with 50 equal to the state average, which means the local demand momentum signal is well above the state baseline. Home value momentum is positive over both the 12-month window, at 13.37 percent, and the 3-month window, at 1.18 percent. Median days on market is 46 days, and the share of listings with a price cut is 19.3 percent. These figures together describe a market where home values are still rising and homes are moving at a steady pace, not a market showing the broad, rapid weakening associated with a crash.

That said, this is a momentum outlook, not a price prediction. The data does not show a future price decline or a crash, but it also cannot rule one out. Population growth is listed as N/A, and there is no data here on credit conditions, inventory shifts outside the 874 homes for sale, or local economic shocks. The momentum snapshot shows firming conditions, but it does not establish what prices will do over the full year.

Momentum Signals

The PropertyIQ Score of 90 is the central signal in this outlook. Because 50 equals the state average, Duluth is running well above that baseline, indicating elevated demand momentum relative to the state average. The confidence grade for this score is A, meaning the current momentum signal is assigned a high confidence level.

The 12-month home value momentum of 13.37 percent points to rising home values over the past year. The 3-month home value momentum of 1.18 percent is also positive, but it is lower than the pace implied by the 12-month figure alone. That suggests the market is still firming, but the near-term pace may be easing or cooling from the longer-run rate. Median days on market at 46 days points to steady buyer interest, with homes spending a relatively moderate amount of time on the market before going under contract. The share of listings with a price cut at 19.3 percent means about one in five listings has seen a reduction. That level does not indicate broad or distressed seller behavior, and it is consistent with a market that is cooling gently rather than breaking down.

Together these drivers describe a market where demand momentum remains above the state average, home values are still rising, and the selling process remains steady. The gap between the 12-month and 3-month value momentum points to some near-term cooling even though the overall signal remains firm.

How Duluth, MN Compares

Against the state averages provided, Duluth shows a mixed but distinctive profile. The median home value in Duluth is $270,683, below the state average of $356,066. The rent index is $1,351, above the state average of $1,235. That combination means Duluth has a lower home value level but a higher rent level than the state average. The unemployment rate is 4.5 percent, essentially in line with the state average of 4.4 percent. Median household income is $71,067, below the state average of $87,556.

The PropertyIQ Score of 90 is far above the state baseline of 50, so the local demand momentum signal is much firmer than the state average. The data provided does not include state benchmarks for days on market, homes for sale, or the share of listings with a price cut, so those cannot be compared directly. National benchmarks were also not provided. Population growth is listed as N/A, which leaves a gap in the comparison. The listed home value year over year figure of $6 is not accompanied by a state benchmark or a clear percentage basis, so it is not used here as a momentum measure.

The Bottom Line for 2026

Duluth enters 2026 with a demand momentum signal of 90 out of 100 and a confidence grade of A. The market shows rising home values over the past 12 months, positive but cooling 3-month momentum, steady days on market, and a moderate share of price cuts. That combination supports a firming to steady outlook rather than a crash scenario. The local market is above the state average for momentum, with a lower median home value and a higher rent index than the state, but also lower median household income and missing population growth data.

The momentum data does not point to a price crash, but it is not a forecast. The near-term pace has eased relative to the 12-month pace, so the market may be cooling even as it remains above the state baseline. The outlook for 2026 is steady and firming by the current momentum measures, with confidence grade A, and no specific future price or percentage change can be drawn from this data.