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Housing

Twin Cities Home Prices Surpass $400,000 for First Time, Despite National Housing Market Worries

Strategic Insights

— 2 min read

The cost to buy a home in the Twin Cities has reached an all-time high, surpassing $400,000 for the first time, according to recent numbers from the Minnesota Realtors. This milestone comes as other cities across the country experience falling home prices, sparking concerns about a potential downturn in the housing market. However, local housing experts argue that the Twin Cities market is different, with prices not experiencing the same surge as in areas like the Sun Belt during the pandemic.

Key Takeaways:

  • The median metro home sale price in the Twin Cities has increased by 2.8% to $401,000, marking the first time prices have surpassed $400,000.
  • Despite the increase, local housing experts argue that the Twin Cities market is not a boom-and-bust market, unlike areas that experienced significant price surges during the pandemic.
  • Nearly a third of U.S. metros have reported declining home prices, with most of them located in Florida, Texas, and Arizona.
  • Those declines have put hundreds of thousands of homeowners underwater on their mortgages, while Minnesota remains unaffected.
  • The ongoing shortage of affordable housing in the Twin Cities could be exacerbated by tariff-induced constraints and economic uncertainty.
  • Builders have kept pace with demand so far this year, but a shortage of 50,000 units remains a pressing issue.
  • Housing starts could be affected if the pace of new construction fails to meet demand.

Statistics:

  • The median metro home sale price in the Twin Cities has increased by 2.8% to $401,000 (Minnesota Realtors).
  • The Twin Cities is not a boom-and-bust market, unlike areas that experienced significant price surges during the pandemic (local housing experts).
  • Nearly a third of U.S. metros have reported declining home prices (WSJ).
  • Most của those declines are located in Florida, Texas, and Arizona (WSJ).
  • Hundreds of thousands of homeowners are underwater on their mortgages (WSJ).
  • The Twin Cities remains unaffected by this issue (Minnesota Realtors).
  • The ongoing shortage of affordable housing in the Twin Cities could be exacerbated by tariff-induced constraints and economic uncertainty (Housing First Minnesota).
  • Builders have kept pace with demand so far this year (Housing First Minnesota).
  • A shortage of 50,000 units remains a pressing issue (usCCR.gov).

Sources:

  • The typical cost to buy a home in the Twin Cities surpassed $400,000 for the first time ever, according to June Minnesota Realtors numbers. (https://www.axios.com/local/twin-cities/2024/12/20/home-prices-prediction-rise-2025-zillow-realtor)
  • Falling prices in some cities have prompted fears of a downturn in the housing market. (https://finance.yahoo.com/news/falling-home-prices-raising-risk-194526775.html)
  • Local housing experts have been saying for years that the Twin Cities is not a boom-and-bust market. (https://www.axios.com/local/twin-cities/2022/06/27/twin-cities-homes-arent-as-overvalued)
  • Nearly a third of U.S. metros have reported declining prices. (https://www.wsj.com/economy/housing/home-prices-2025-charts-housing-market-391e10cf?gaa_at=eafs&gaa_n=ASWzDAgXx02tDNSUuoy0Xh8jcDzYezSpLCvmaTgEFJ7D2Imxr7AiUAQrM0il1hVEQD4%3D&gaa_ts=6877d911&gaa_sig=JHMD3ykjXF5KPnSkJeHYdaOcW9aArbBqrN6fg4aicI7cjJZ8pPRx_vUPKI6EXq3c1ISugbhIgHbFcaLmdVaq2w%3D%3D)
  • Those declines have put hundreds of thousands of homeowners underwater on their mortgages. (https://www.wsj.com/economy/housing/underwater-mortgages-negative-equity-charts-4e5978a1?gaa_at=eafs&gaa_n=ASWzDAhDAIZMQ-Vry5MF-mBhM9QaNK_wIikwMNSfuh3dpAXQsW7o6Ml7uBfPc5QUzg8%3D&gaa_ts=6877e5e2&gaa_sig=-1MVqQYoGPM3bGDZ4RuaUyHW6tDruot8-CcuQkq0HMq15sDmmdda2BjIsVxz2DvfP_KS15h5o-Dtfa7RvmOi0g%3D%3D)
  • With mortgage rates still just shy of 7%, housing affordability -- especially for first-time buyers -- is still a major issue, Patti Jo Fitzpatrick, president of Minnesota Realtors, said in a news release.
  • Housing starts could be affected, and the Twin Cities is still short 50,000 units. (https://www.usccr.gov/files/2025-01/mn-sac-policy-brief.pdf)
  • Builders have kept pace so far this year, even in the face of tariffs and economic uncertainty, according to Housing First Minnesota. (https://www.minneapolisfed.org/article/2025/after-recent-successes-twin-cities-regions-housing-supply-progress-slips)

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