Home prices have surged in the U.S. in recent years. Driven by rising demand and supply constraints during the pandemic, the median home sale price spiked by nearly 50% from the second quarter of 2020 to Q3 in 2022. While the sale price of a typical American home has fallen in recent months since, housing prices remain at historic highs.
Not only have home values soared, but borrowing costs for home buyers have also climbed. The average interest rate on a 30-year fixed mortgage has been above 6% since September 2022, a high not seen in nearly a decade and a half. In a market defined by high prices and high mortgage rates, homeownership has become prohibitively expensive for a large number of Americans.
Still, housing prices are also subject to a number of factors that can be isolated from broader, nationwide market trends — and location is one of them. Two homes that are virtually identical can vary in price by hundreds of thousands of dollars, depending on where they are. And for prospective homeowners on a budget, some Minnesota cities are far more affordable than others.
According to five-year estimates from the U.S. Census Bureau’s 2022 American Community Survey, the typical home in Minnesota is worth $286,800. But across the 43 cities, towns and unincorporated communities in the state with populations of at least 25,000, median home values range from less than $140,000 to over $600,000.
In any local market, home prices are often a reflection of what residents can afford. In Minnesota, many of the least expensive cities for homebuyers are not high-income areas. Of the 43 places in Minnesota with available data from the ACS, 13 have a median home value that is less than the statewide median. In all but two of these places, the typical household earns less than the statewide median household income of $84,313. Similarly, most of Minnesota’s more expensive housing markets have higher earning populations.
Why It Matters
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Homeownership is one of the most practical ways to build wealth in the United States, and rising borrowing costs and home values are pricing out a growing share of the population. The state of the U.S. housing market also has broader economic implications. According to the Congressional Research Service, spending associated with homeownership totaled $1.1 trillion in 2021, or nearly 5% of U.S. gross domestic product.
These are the cheapest and most expensive housing markets in Minnesota.
43. Austin
Source: Jacob Boomsma / iStock via Getty Images
- Median home value: $139,100
- Homes worth over $1 million: 0.4%
- Homeownership rate: 68.3%
- Median household income: $61,667
- Total population: 26,156
42. Winona
Source: rruntsch / iStock via Getty Images
- Median home value: $176,600
- Homes worth over $1 million: 0.7%
- Homeownership rate: 57.8%
- Median household income: $52,500
- Total population: 26,083
41. St. Cloud
Source: Public Domain / Wikimedia Commons
- Median home value: $189,600
- Homes worth over $1 million: 0.6%
- Homeownership rate: 48.2%
- Median household income: $58,910
- Total population: 68,910
40. Duluth
Source: BanksPhotos / iStock via Getty Images
- Median home value: $209,800
- Homes worth over $1 million: 0.9%
- Homeownership rate: 60.6%
- Median household income: $63,545
- Total population: 86,772
39. Owatonna
Source: Public Domain / Wikimedia Commons
- Median home value: $216,700
- Homes worth over $1 million: 0.1%
- Homeownership rate: 73.7%
- Median household income: $78,295
- Total population: 26,400
38. Moorhead
Source: Jacob Boomsma / iStock via Getty Images
- Median home value: $234,300
- Homes worth over $1 million: 0.9%
- Homeownership rate: 57.8%
- Median household income: $68,680
- Total population: 44,443
37. Mankato
Source: Jacob Boomsma / iStock via Getty Images
- Median home value: $236,200
- Homes worth over $1 million: 1.0%
- Homeownership rate: 49.6%
- Median household income: $61,726
- Total population: 44,444
36. Brooklyn Center
Source: Jacob Boomsma / iStock via Getty Images
- Median home value: $240,800
- Homes worth over $1 million: 1.0%
- Homeownership rate: 61.0%
- Median household income: $70,692
- Total population: 33,109
35. Fridley
Source: Rob Schultz / iStock via Getty Images
- Median home value: $257,100
- Homes worth over $1 million: 0.4%
- Homeownership rate: 60.9%
- Median household income: $76,592
- Total population: 29,731
34. St. Paul
Source: pabradyphoto / iStock via Getty Images
- Median home value: $264,900
- Homes worth over $1 million: 1.7%
- Homeownership rate: 53.0%
- Median household income: $69,919
- Total population: 308,806
33. Coon Rapids
Source: Public Domain / Wikimedia Commons
- Median home value: $268,500
- Homes worth over $1 million: 0.1%
- Homeownership rate: 74.8%
- Median household income: $85,445
- Total population: 63,296
32. Rochester
Source: BanksPhotos / E+ via Getty Images
- Median home value: $268,800
- Homes worth over $1 million: 0.9%
- Homeownership rate: 65.5%
- Median household income: $83,973
- Total population: 120,848
31. Maplewood
Source: Jacob Boomsma / iStock via Getty Images
- Median home value: $282,000
- Homes worth over $1 million: 0.4%
- Homeownership rate: 72.1%
- Median household income: $86,769
- Total population: 41,405
30. Oakdale
Source: Davslens Photography / iStock via Getty Images
- Median home value: $288,700
- Homes worth over $1 million: 1.1%
- Homeownership rate: 77.2%
- Median household income: $86,003
- Total population: 28,029
29. Brooklyn Park
Source: Wirestock / iStock via Getty Images
- Median home value: $289,400
- Homes worth over $1 million: 0.4%
- Homeownership rate: 69.2%
- Median household income: $82,271
- Total population: 84,951
28. Richfield
Source: Public Domain / Wikimedia Commons
- Median home value: $294,000
- Homes worth over $1 million: 0.5%
- Homeownership rate: 61.7%
- Median household income: $80,712
- Total population: 36,809
27. Blaine
Source: sequential5 / Getty Images
- Median home value: $303,800
- Homes worth over $1 million: 0.5%
- Homeownership rate: 85.3%
- Median household income: $100,659
- Total population: 70,047
26. Elk River
Source: Elliot Stevenson / iStock via Getty Images
- Median home value: $305,700
- Homes worth over $1 million: 0.8%
- Homeownership rate: 78.5%
- Median household income: $95,597
- Total population: 25,936
25. Burnsville
Source: Jacob Boomsma / iStock via Getty Images
- Median home value: $315,700
- Homes worth over $1 million: 0.6%
- Homeownership rate: 68.2%
- Median household income: $85,801
- Total population: 64,075
24. Roseville
Source: McGhiever / Wikimedia Commons
- Median home value: $318,400
- Homes worth over $1 million: 1.6%
- Homeownership rate: 69.1%
- Median household income: $87,702
- Total population: 36,066
23. Bloomington
Source: SamWagnerTimelapse / iStock via Getty Images
- Median home value: $327,100
- Homes worth over $1 million: 0.8%
- Homeownership rate: 67.0%
- Median household income: $87,381
- Total population: 89,244
22. Minneapolis
Source: RudyBalasko / iStock via Getty Images
- Median home value: $328,700
- Homes worth over $1 million: 3.6%
- Homeownership rate: 48.1%
- Median household income: $76,332
- Total population: 426,877
21. Apple Valley
Source: jferrer / iStock via Getty Images
- Median home value: $333,300
- Homes worth over $1 million: 0.4%
- Homeownership rate: 75.6%
- Median household income: $97,588
- Total population: 55,594
20. Ramsey
Source: Public Domain / Wikimedia Commons
- Median home value: $334,200
- Homes worth over $1 million: 0.7%
- Homeownership rate: 84.8%
- Median household income: $110,212
- Total population: 27,774
19. Cottage Grove
Source: diversey / Flickr
- Median home value: $337,000
- Homes worth over $1 million: 0.8%
- Homeownership rate: 88.1%
- Median household income: $117,673
- Total population: 39,274
18. Inver Grove Heights
Source: jferrer / iStock via Getty Images
- Median home value: $337,200
- Homes worth over $1 million: 0.5%
- Homeownership rate: 73.7%
- Median household income: $98,719
- Total population: 35,673
17. Shakopee
Source: HaizhanZheng / iStock via Getty Images
- Median home value: $348,300
- Homes worth over $1 million: 1.2%
- Homeownership rate: 73.1%
- Median household income: $103,924
- Total population: 44,135
16. Shoreview
Source: Gabriel Vanslette / Wikimedia Commons
- Median home value: $349,300
- Homes worth over $1 million: 1.2%
- Homeownership rate: 83.4%
- Median household income: $106,153
- Total population: 26,846
15. St. Louis Park
Source: diversey / Flickr
- Median home value: $357,900
- Homes worth over $1 million: 1.5%
- Homeownership rate: 58.7%
- Median household income: $94,263
- Total population: 49,500
14. Chaska
Source: Jacob Boomsma / iStock via Getty Images
- Median home value: $359,700
- Homes worth over $1 million: 0.7%
- Homeownership rate: 70.0%
- Median household income: $99,988
- Total population: 27,764
13. Eagan
Source: Public Domain / Wikimedia Commons
- Median home value: $362,200
- Homes worth over $1 million: 0.5%
- Homeownership rate: 70.3%
- Median household income: $104,101
- Total population: 68,262
12. Andover
Source: Feverpitched / iStock via Getty Images
- Median home value: $370,200
- Homes worth over $1 million: 1.1%
- Homeownership rate: 93.7%
- Median household income: $123,054
- Total population: 32,639
11. Savage
Source: Wirestock / iStock via Getty Images
- Median home value: $377,600
- Homes worth over $1 million: 1.9%
- Homeownership rate: 85.7%
- Median household income: $123,069
- Total population: 32,441
10. Rosemount
Source: diversey / Flickr
- Median home value: $378,500
- Homes worth over $1 million: 1.0%
- Homeownership rate: 86.7%
- Median household income: $127,252
- Total population: 25,993
9. Maple Grove
Source: Anh Luu / Shutterstock.com
- Median home value: $379,800
- Homes worth over $1 million: 1.2%
- Homeownership rate: 83.6%
- Median household income: $127,001
- Total population: 70,110
8. Lakeville
Source: Wirestock / iStock via Getty Images
- Median home value: $395,900
- Homes worth over $1 million: 1.2%
- Homeownership rate: 87.4%
- Median household income: $129,069
- Total population: 70,696
7. Prior Lake
Source: Wirestock / iStock via Getty Images
- Median home value: $400,500
- Homes worth over $1 million: 6.2%
- Homeownership rate: 86.2%
- Median household income: $129,539
- Total population: 27,608
6. Woodbury
Source: Public Domain / Wikimedia Commons
- Median home value: $409,900
- Homes worth over $1 million: 0.9%
- Homeownership rate: 80.0%
- Median household income: $125,097
- Total population: 75,549
5. Minnetonka
Source: nikitsin / iStock via Getty Images
- Median home value: $430,800
- Homes worth over $1 million: 4.6%
- Homeownership rate: 72.2%
- Median household income: $114,867
- Total population: 53,529
4. Eden Prairie
Source: Public Domain / Wikimedia Commons
- Median home value: $442,200
- Homes worth over $1 million: 4.7%
- Homeownership rate: 76.3%
- Median household income: $129,345
- Total population: 63,623
3. Plymouth
Source: rasilja / iStock via Getty Images
- Median home value: $447,600
- Homes worth over $1 million: 1.4%
- Homeownership rate: 74.6%
- Median household income: $130,131
- Total population: 79,918
2. Chanhassen
Source: Public Domain / Wikimedia Commons
- Median home value: $488,000
- Homes worth over $1 million: 8.2%
- Homeownership rate: 86.6%
- Median household income: $131,633
- Total population: 25,868
1. Edina
Source: Jacob Boomsma / iStock via Getty Images
- Median home value: $601,700
- Homes worth over $1 million: 17.5%
- Homeownership rate: 70.9%
- Median household income: $125,506
- Total population: 53,037
| Rank | Places in Minnesota with at least 25,000 residents | Median home value ($) | Homeownership rate (%) | Median household income ($) | Total Population |
|---|---|---|---|---|---|
| 1 | Edina | 601,700 | 70.9 | 125,506 | 53,037 |
| 2 | Chanhassen | 488,000 | 86.6 | 131,633 | 25,868 |
| 3 | Plymouth | 447,600 | 74.6 | 130,131 | 79,918 |
| 4 | Eden Prairie | 442,200 | 76.3 | 129,345 | 63,623 |
| 5 | Minnetonka | 430,800 | 72.2 | 114,867 | 53,529 |
| 6 | Woodbury | 409,900 | 80.0 | 125,097 | 75,549 |
| 7 | Prior Lake | 400,500 | 86.2 | 129,539 | 27,608 |
| 8 | Lakeville | 395,900 | 87.4 | 129,069 | 70,696 |
| 9 | Maple Grove | 379,800 | 83.6 | 127,001 | 70,110 |
| 10 | Rosemount | 378,500 | 86.7 | 127,252 | 25,993 |
| 11 | Savage | 377,600 | 85.7 | 123,069 | 32,441 |
| 12 | Andover | 370,200 | 93.7 | 123,054 | 32,639 |
| 13 | Eagan | 362,200 | 70.3 | 104,101 | 68,262 |
| 14 | Chaska | 359,700 | 70.0 | 99,988 | 27,764 |
| 15 | St. Louis Park | 357,900 | 58.7 | 94,263 | 49,500 |
| 16 | Shoreview | 349,300 | 83.4 | 106,153 | 26,846 |
| 17 | Shakopee | 348,300 | 73.1 | 103,924 | 44,135 |
| 18 | Inver Grove Heights | 337,200 | 73.7 | 98,719 | 35,673 |
| 19 | Cottage Grove | 337,000 | 88.1 | 117,673 | 39,274 |
| 20 | Ramsey | 334,200 | 84.8 | 110,212 | 27,774 |
| 21 | Apple Valley | 333,300 | 75.6 | 97,588 | 55,594 |
| 22 | Minneapolis | 328,700 | 48.1 | 76,332 | 426,877 |
| 23 | Bloomington | 327,100 | 67.0 | 87,381 | 89,244 |
| 24 | Roseville | 318,400 | 69.1 | 87,702 | 36,066 |
| 25 | Burnsville | 315,700 | 68.2 | 85,801 | 64,075 |
| 26 | Elk River | 305,700 | 78.5 | 95,597 | 25,936 |
| 27 | Blaine | 303,800 | 85.3 | 100,659 | 70,047 |
| 28 | Richfield | 294,000 | 61.7 | 80,712 | 36,809 |
| 29 | Brooklyn Park | 289,400 | 69.2 | 82,271 | 84,951 |
| 30 | Oakdale | 288,700 | 77.2 | 86,003 | 28,029 |
| 31 | Maplewood | 282,000 | 72.1 | 86,769 | 41,405 |
| 32 | Rochester | 268,800 | 65.5 | 83,973 | 120,848 |
| 33 | Coon Rapids | 268,500 | 74.8 | 85,445 | 63,296 |
| 34 | St. Paul | 264,900 | 53.0 | 69,919 | 308,806 |
| 35 | Fridley | 257,100 | 60.9 | 76,592 | 29,731 |
| 36 | Brooklyn Center | 240,800 | 61.0 | 70,692 | 33,109 |
| 37 | Mankato | 236,200 | 49.6 | 61,726 | 44,444 |
| 38 | Moorhead | 234,300 | 57.8 | 68,680 | 44,443 |
| 39 | Owatonna | 216,700 | 73.7 | 78,295 | 26,400 |
| 40 | Duluth | 209,800 | 60.6 | 63,545 | 86,772 |
| 41 | St. Cloud | 189,600 | 48.2 | 58,910 | 68,910 |
| 42 | Winona | 176,600 | 57.8 | 52,500 | 26,083 |
| 43 | Austin | 139,100 | 68.3 | 61,667 | 26,156 |
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