Twin Cities Median Home Sale Price Hits Historic $401,000 In June

Twin Cities Median Home Sale Price Hits Historic $401,000 In June

MINNEAPOLIS–ST. PAUL — July 22, 2025 — For the first time in recorded history, the median home sale price in the Twin Cities metro area has surpassed $400,000, marking a significant milestone in the region’s housing market. According to the latest data from Minnesota Realtors, the median sale price reached $401,000 in June, representing a 2.8% increase over the same month last year.

While the figure signals steady growth, it also underscores the ongoing challenges of affordability and access to homeownership in a tight, competitive market.

Growth With Stability

Despite headlines nationwide of cooling housing markets, the Twin Cities continues to chart a course of measured, sustainable growth. Industry experts note that the market is not experiencing the sharp spikes seen in more volatile regions, but rather a steady climb—rooted in healthy demand and a gradually improving inventory.

“The Twin Cities continues to be a stable, boom-resistant market,” said David Arbit, Director of Research at Minnesota Realtors. “Crossing $400,000 is a symbolic milestone, but not an unexpected one.”

Cost of Ownership Rises Sharply

While home prices have increased modestly, the cost of ownership has climbed more dramatically due to elevated interest rates and inflation-linked expenses:

• Mortgage rates remain close to 7%, pushing average monthly payments to over $2,600—roughly $1,000 more than in 2021.
• Homeowners are also absorbing nearly $20,000–$21,000 annually in related costs, including taxes, insurance, utilities, and maintenance.

These financial pressures are being felt most acutely by first-time buyers, many of whom are being priced out of the market.

“We’re seeing more buyers making trade-offs, whether that’s moving farther from job centers or purchasing smaller homes,” said Patti Jo Fitzpatrick, President of Minnesota Realtors.

Price Breakdown: Metro vs. Core Cities

Courtesy: Axios

The new median reflects sales across the seven-county metro area. Core city pricing, however, remains more accessible:

• Minneapolis: ~$350,000 median
• St. Paul: ~$320,000 median
• Twin Cities metro: $401,000 median

These disparities offer entry points for buyers but also highlight economic divides between city centers and suburban markets.

Market Conditions

The Twin Cities housing market continues to experience low but improving inventory levels:

• Approximately 6,500 new listings were added in June—a 0.8% year-over-year increase.
• Total active listings rose by about 2%, bringing the market to a 2.6-month supply, still well below the balanced benchmark of 5–6 months.

This constrained inventory continues to favor sellers, although experts note that buyers are beginning to gain more negotiating power than in previous years.

What Comes Next

Economists and housing advocates are watching several key indicators heading into the fall:

• Mortgage rate trends: A modest decline in rates could boost affordability and listings.
• Construction activity: Any acceleration in new builds could help ease the inventory crunch.
• Policy interventions: Local and state-level affordable housing initiatives may help offset some of the financial barriers to entry.

Dr. Andrew Babula of the University of St. Thomas described the $400,000 milestone as “more symbolic than seismic,” but warned that without meaningful changes to affordability, the market risks becoming inaccessible to younger and middle-income buyers.

At a Glance

The Twin Cities housing market remains resilient, reflecting long-term stability—but also increasing pressure on affordability. As prices cross historic thresholds, industry leaders and policymakers alike are faced with the question: How do we ensure the dream of homeownership remains within reach for all Minnesotans?

MinneapoliMedia will continue to monitor market trends, housing policy, and affordability impacts across the metro region.

MinneapoliMedia