Average House Price in Minnesota

The average house price in Minnesota plays a big role in how affordable it is to live in the state. While the overall cost is lower than in many parts of the country, home prices vary widely depending on location, amenities, and market trends.

From Twin Cities condos to small-town ramblers, understanding what you can expect to pay helps you make smarter decisions when buying a home in Minnesota. Whether you’re relocating, refinancing, or buying your first home, this guide walks you through the numbers.

Current Average House Price in Minnesota

As of early 2025, the average house price in Minnesota is around $349,000. This number reflects a statewide average, which includes both urban and rural areas.

In Minneapolis and St. Paul, the average home price tends to be higher, hovering between $350,000 to $450,000. In contrast, cities like Rochester and Duluth offer homes in the $250,000 to $320,000 range. Meanwhile, in more rural communities, you can still find homes under $200,000.

Keep in mind that price depends on factors like square footage, age of the home, upgrades, school district ratings, and location within the state.

Housing Prices by Region

Let’s break down the average house price in Minnesota by region:

• Twin Cities Metro
  Minneapolis, St. Paul, and surrounding suburbs often have the highest prices due to job opportunities, schools, and public transit access. Expect to pay around $400,000 for a single-family home in desirable areas like Edina, Maple Grove, or Woodbury. 
• Southern Minnesota
  Towns like Mankato and Albert Lea offer lower prices, with averages between $180,000 and $250,000. These areas are attractive for first-time buyers and retirees. 
• Northern Minnesota
  Duluth, Bemidji, and Hibbing offer a mix of prices. Duluth is slightly higher due to its port and university presence, averaging about $275,000, while Hibbing offers homes for under $175,000. 
• Western Minnesota
  More rural areas like Fergus Falls or Willmar present some of the most affordable housing options, with average home prices around $160,000 to $200,000.
  

If you’re looking to keep your overall expenses in check, compare this with the cost of living in Minnesota to get a full financial picture.

How Prices Compare With Other States

Minnesota homes are still more affordable than in many parts of the country. Compared to states like Colorado, Washington, or California, the average house price in Minnesota offers more space for less money. This makes it an appealing option for remote workers and young families looking to stretch their dollars further.

A cost of living comparison in Minnesota cities shows that while Minneapolis has higher home prices, it also has better access to jobs and services. Smaller towns often trade lower home prices for fewer amenities or longer commutes.

Affordable Places to Consider

If you’re house hunting on a budget, you might want to explore the cheapest place to live in Minnesota. Towns like Austin, Fairmont, and Hibbing offer very affordable homes without sacrificing quality of life. Many of these areas are ideal for remote workers or retirees who want peace and space without the high price tag.

These locations are also attractive for those looking to build equity or invest in rental properties.

What Impacts Home Prices in Minnesota

Several factors affect the average house price in Minnesota, including:

• Local job growth and demand
• School districts and neighborhood rankings
• Proximity to shopping, parks, and public transit
• Home condition and renovation history
• Interest rates and market supply

As demand shifts and more people explore the Minnesota living cost, areas once considered “too far out” are quickly gaining popularity and increasing in value.

Tips for Buying at the Right Price

If you’re thinking about buying in Minnesota, here are a few tips:

• Work with a local mortgage expert who understands the market
• Get pre-approved so you know what you can afford
• Watch for seasonal trends, as prices often dip slightly in winter
• Compare city vs. suburban options to find your ideal price range
• Use data like average days on market, price per square foot, and historical price trends to guide your decision

Homeownership is one of the biggest investments you’ll make, and knowing the average house price in Minnesota helps you plan with confidence.

Ready to Explore Homeownership in Minnesota?

At First Class Mortgage, we make it easy to understand your options and buy with confidence. Whether you’re eyeing a starter home or upgrading to your dream space, our team is here to walk you through the process.

Contact us today for a personalized guidance on your home search.