Minneapolis, MN Housing Market Report

The Minneapolis housing market as of December 2025 reflects a state of measured stability, characterized by modest price appreciation and a gradual increase in available inventory. With a median home value of $315,907, the market has seen a 1.46 percent increase over the past year. While the sale-to-list ratio remains at a perfect 1.0, indicating that homes are generally selling for their asking price, the increase in active inventory to 7,661 units suggests a market that is slowly moving toward a more balanced environment. Buyers currently have more options than they did a year ago, though the 63-day average on the market indicates that well-priced properties still move at a steady pace.

Price trends over the last six months show a consistent upward trajectory, with values rising every month since July 2025. This steady climb from $312,325 in mid-summer to nearly $316,000 by year-end demonstrates resilient demand despite broader economic fluctuations. Interestingly, the rental market is outpacing the sales market in terms of growth, with median rents rising 4.6 percent year-over-year to $1,693. This divergence suggests that while some residents are opting to rent due to interest rate pressures or lifestyle preferences, the underlying demand for housing in the Minneapolis-St. Paul-Bloomington metro area remains robust.

Looking ahead, the Minneapolis market appears positioned for continued low-volatility growth. For sellers, the 100 percent sale-to-list ratio is an encouraging sign that pricing strategies are aligning well with buyer expectations, though the slight increase in days on market means patience is required. For buyers, the 4.09 percent increase in active inventory provides a much-needed cushion against the bidding wars of previous years. As we move into 2026, the market is likely to remain attractive for long-term investors and primary residents who value the stability of the Twin Cities economy over the high-risk volatility seen in coastal markets.