Minnesota Housing Market Update: Where We Are and Where We’re Headed in 2026
As we kick off 2026, Minnesota’s housing market continues to show resilience and balance after years of intense competition and rapid price increases. Whether you’re thinking about buying, selling, or planning for the future, here’s what the data is showing and what local trends mean for you.
Current Market Snapshot
In late 2025 and early 2026 data, several key trends stood out across the state:
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Home prices have continued to rise, though at a more moderate pace than earlier in the decade. Median prices in Minnesota are up year-over-year, with figures around the mid-$300,000s, showing steady but not explosive growth.
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Inventory has increased slightly, giving buyers a few more choices than in years past, though supply still hasn’t fully caught up with demand.
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Homes aren’t flying off the market like they used to. Days on market have ticked up modestly, meaning buyers can take a bit more time to make confident decisions without feeling rushed.
In short, Minnesota is still not a “buyer’s market,” but it’s steadily becoming more balanced.
Mortgage Rates & Affordability
One of the biggest influences on our local market is mortgage rates. After a prolonged period of highs near 7%, rates have started to trend downward and may dip into the low-to-mid 6% range in 2026 — or even briefly below 6%.
Lower rates can help increase affordability, bringing more buyers back into the market and strengthening confidence — especially for first-time buyers or those looking to refinance.
What 2026 May Bring
Looking ahead, expectations are for a steady and healthy market, rather than dramatic swings:
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Price growth is forecast to remain modest. Experts suggest modest increases rather than the double-digit jumps seen earlier in the decade.
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Inventory is expected to expand gradually as sellers who held off in recent years decide to list and new construction adds more homes.
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Affordability conditions should slowly improve, especially if mortgage rates ease as predicted.
This environment tends to reward preparation: buyers who know their budget and financing, and sellers who price and present their homes competitively.
What This Means for You
For buyers, the market in 2026 offers slightly more breathing room. More listings and a slower pace can translate to better choices and less stress around bids.
For sellers, homes in strong condition and properly priced are still attracting solid interest. A balanced market means strategic pricing and marketing matter more than ever.
And for investors, certain Minnesota regions continue to provide opportunity, especially in areas with rental demand and steady local job markets.
