Minneapolis, MN Housing Market

Market Overview

Minneapolis is a moderate market, reflected in a PropertyIQ Score of 50 out of 100. The median home value is $388,865, about $38,113 above the Minnesota state average of $350,752. The rent index is $1,719, well above the state average of $1,280, and median household income is $99,833 compared with $89,062 statewide. Unemployment is 4.4 percent, just slightly above the state average of 4.3 percent. Taken together, these benchmarks show a market with above-state prices and rents, supported by above-state incomes but held back by cooling price momentum.

The score’s top drivers help explain the middle rating. Twelve-month home value momentum is 4.17 percent, a positive signal over the past year, while three-month momentum is -1.61 percent, pointing to recent softening. Median days on market is 39 days, and 20.3 percent of listings have had a price cut. The data also list a year-over-year home value figure of -$3, essentially flat. This mix of stable annual movement and weaker short-term momentum positions Minneapolis as a balanced market rather than a clearly strong or weak one.

Key Trends

A first trend is mixed home value momentum. The 12-month momentum of 4.17 percent shows appreciation over the past year, but the 3-month momentum of -1.61 percent shows a short-term pullback. The reported year-over-year median home value change of -$3 also suggests essentially flat annual movement at the median. Even so, the median home value of $388,865 remains about 10.9 percent above the state average of $350,752.

A second trend is a moderate sales pace. With median days on market at 39 days and 10,976 homes for sale, the market is not extremely tight. The share of listings with a price cut is 20.3 percent, meaning roughly one in five sellers has adjusted price. This indicates buyers have some negotiating room, but it does not suggest a distressed market.

A third trend is comparatively strong rental pricing. The rent index of $1,719 is $439 above the state average of $1,280, which may reflect stronger rental demand in Minneapolis than in Minnesota overall. This matters for both renters and investors evaluating purchase prices.

A fourth trend is relative income support. Median household income is $99,833, about $10,771 above the state average of $89,062. That helps support the higher median home value. Unemployment at 4.4 percent is close to the state average of 4.3 percent. Population growth is not available in the provided data, so demographic-driven demand cannot be measured.

Who Is This Market For

A moderate score of 50 suits several buyer profiles, but not those looking for extreme appreciation or deep discounts. First-time buyers may find opportunity because median days on market is 39 days and 20.3 percent of listings have price cuts, which can reduce bidding pressure. The median home value of $388,865 is above the state average, but the median household income of $99,833 is also above state average, providing some affordability support.

Move-up buyers may benefit from inventory of 10,976 homes for sale and the recent 3-month momentum of -1.61 percent, which could create more negotiable pricing than in a fast-moving market. Long-term investors may be drawn to the rent index of $1,719, which is well above the Minnesota average of $1,280. However, with the median home value above the state average and short-term price momentum negative, this market is better suited to long-term rental investors than short-term flippers.

Outlook

The near-term outlook for Minneapolis is stable with cooling lean. The 12-month home value momentum of 4.17 percent provides a foundation of annual growth, but the 3-month momentum of -1.61 percent points to short-term softness. With 20.3 percent of listings showing price cuts and median days on market at 39 days, conditions should remain balanced. Above-state median household income of $99,833 and a rent index of $1,719 offer underlying support, while unemployment at 4.4 percent is near the state average of 4.3 percent. Population growth data is not available, which limits any conclusion about future household formation. Overall, the numbers support a moderate market with cooling price momentum rather than a sharp upswing or downturn.