Minnesota home prices up $142K in 10 years, affordability hits new low: Report
High home prices in the Twin Cities
It?s a seller's market across the Twin Cities, but when it comes to buying, housing experts say patience is key.
(FOX 9) - Minnesota homeowners have seen a dramatic rise in property values over the past decade, but the growth has made it tougher for new buyers to afford a new home.
Minnesota home values rise faster than wages
What we know:
According to Construction Coverage, which claims to have analyzed data from Zillow, the U.S. Census Bureau and the Department of Housing and Urban Development, home prices in Minnesota have jumped by $142,000 in the past 10 years.
Nationally, home values increased by more than 81% over the last decade, while average hourly earnings only went up by 47%.
The backstory:
The COVID-19 pandemic accelerated home price increases, but the trend of growth after economic downturns is nothing new.
Historically, median home prices in the U.S. rose by about 33.6% five years after a recession, the report says.
Meanwhile, inflation is pushing prices higher, and mortgage rates above 6% are keeping monthly payments near record highs.
Why you should care:
Homeowners who bought before the price surge have gained a lot of equity, but those looking to buy now face a much steeper climb.
Dig deeper:
According to the report, below is a summary of the data for Minnesota spanning the last decade:
- Percentage change in median home price (2016–2026): +69.4%
- Total change in median home price (2016–2026): +$142,007
- Median home price (March 2026): $346,668
- Median home price (March 2016): $204,661
- Percentage change in median household income (2014–2024): +46.4%
- Median household income (2024): $89,062
The Source: Information provided by Construction Coverage, Zillow, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.