Minnesota’s Housing Market Just Made History – And Not in a Good Way

Everything keeps getting more and more expensive. At times, it feels like there's no end in sight! Groceries cost more, going out to do fun things with friends and family is costing more, and if you're hoping to buy a house, that's costing more, too.

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The Housing Market is Still Crazy

The housing market is still nuts. I thought maybe we'd start to see a bit of a price improvement, but no such thing has happened.

Mortgage rates are a lot better than they were a few years ago, which is a positive. Freddie Mac shows that mortgage rates are at 6.75% at the moment.

However, the cost for the homes isn't coming down and actually continues to go up. Bad news for all of us who are hoping to buy a house in the future. Anyone else feeling like they're never going to afford to buy a house, or is that just me?

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How Much is the Median Home Price in Minnesota?

A report from Minnesota Realtors says that the median cost of a home in Minnesota is at the highest it's ever been in history as of June 2025.

It's important to note here that the median cost is not the same as the average cost. The average cost would be affected by all of the really expensive homes, making the average possibly higher than what's truly 'average'.

The median cost is the middle value of the cost of listed homes in Minnesota, so the multi-million dollar homes won't skew the number.

What Minnesota Realtors found is that the median cost of a home across Minnesota right now is at an all-time high of $370,000.

As for the Twin Cities, the median cost of a home is also at an all-time high at $401,000. This is the first time ever that the median cost of a home in the area has been over $400,000.

That's crazy. I have to imagine something is going to happen that will bring those prices to a more reasonable level again. A continued trajectory like this just isn't sustainable.