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Minnesota Real Estate Market Trends 2026

355000

Median Price
Vacancy Rate %

5.5

Population

5717184

Population Growth %

0.3

Home Price YoY % Change

3

Average Cap Rate %

6.2

Rent Yoy % Growth

2.5

Median Rent

1150

Market Overview

Minnesota's real estate market in 2026 features a median home price of $355,000, reflecting a +3% year-over-year change. The rental market shows rising rents with a median one-bedroom at $1,150/month and two-bedroom at $1,400/month (+2.5% YoY). With a population of 5.7M that is steadily growing, Minnesota represents a mid-range market with steady rental demand. The vacancy rate of 5.5% is near the national average (national: 7.2%). Top investment cities include Minneapolis, St. Paul, Rochester, Bloomington, Duluth. Minnesota is considered neutral in terms of rental regulations.

Top Investment Cities

Minneapolis, St. Paul, Rochester, Bloomington, Duluth

Investment Outlook

Minnesota's market offers an average cap rate of 6.2%, typical of mid-range markets. Investors should focus on value-add opportunities and neighborhoods with above-average rental demand. The moderate rental demand in Minneapolis and St. Paul provides the strongest opportunity for consistent occupancy and rent growth.

Key Takeaways for 2026

Median home price: $355,000 (+3% YoY)
Average rent: $1150-$1400/mo
Cap rate: 6.2%
Vacancy: 5.5%
Population growth: +0.3%
Demand: Moderate
Regulation: Neutral

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