Minneapolis Home Prices Post 7% Jump Over Last Year Amid Tight Inventory

Minneapolis home prices climbed briskly in the last quarter, with the median single-family sale price up 7% compared to the same period in 2025, according to new figures from the Minneapolis Area REALTORS released Thursday. The median now sits at $393,000 citywide—another record high for the metro’s peak summer months.

The pace matters, especially after a tepid 2025 when rising interest rates and fears of a market correction spooked many buyers and sellers. The latest numbers confirm the market’s rebound, presenting both hope and frustration: sellers are seeing bidding wars return in neighborhoods like Nokomis and Northeast, while buyers lament the slim pickings and escalating costs in walkable city corridors.

Neighborhood Divides Widen

Price growth has been most pronounced near Lake Nokomis and in the Arts District of Northeast Minneapolis. According to Red Pine Realty’s manager, this March through June period saw Nokomis median single-family sale prices reach $435,000, up $38,000 from last spring’s median. On the opposite side of town, a cluster of new breweries and the expansion of the Solar Arts Building has spurred a 10% year-over-year gain in Northeast, with median closed sales there hitting $419,000.

Even so, the number of homes for sale across Minneapolis remains stubbornly low. The latest listing tally from NorthstarMLS showed less than 2,200 active single-family homes countywide on July 1, with only 672 within official city limits—down 15% from a year ago. The pressure is most intense for mid-range buyers targeting Powderhorn and Longfellow, where open houses on E 38th Street or along Lake Street regularly attract a dozen or more offers, agents say.

Data Shows Rapid Price Gains

Citywide, the average days-on-market for Minneapolis houses is now at 19—down nearly a week from last June, reflecting how quickly properties are moving. The $393,000 median sale price puts Minneapolis well ahead of the national growth rate, which clocked in at 4.5% for Q2, according to Moody’s Analytics. Local data from the Minneapolis Area REALTORS shows more than half of city listings now close above the asking price, especially for two-bedroom homes walking distance from Minnehaha Creek or downtown transit lines.

The tight conditions have forced first-time buyers into smaller condos, primarily in Loring Park and Uptown, where median condo prices rose just 3%—much slower than for detached homes. Yet even those units are seeing faster turnover, with the average closing in under 28 days, versus 35 a year ago.

What Buyers and Sellers Should Expect Next

Agents and mortgage brokers expect tightening supply and persistent demand to keep prices firm through the rest of 2026, barring any rapid change in interest rates from the Federal Reserve. For sellers, the advice is to stage and price properties aggressively—units within walking distance to Lake Hiawatha or the Midtown Greenway can command a premium. Buyers should be pre-approved and prepared to move quickly. City council is also considering new incentives for accessory dwelling units in neighborhoods south of Hennepin Ave, hoping to boost inventory by 2027. Until then, Minneapolis’s sellers remain in the driver’s seat, with little relief in sight for those priced out of the city’s hottest ZIP codes.