{"id":12832,"date":"2019-11-27T15:54:55","date_gmt":"2019-11-27T23:54:55","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=12832"},"modified":"2026-04-13T10:34:33","modified_gmt":"2026-04-13T17:34:33","slug":"buyer-buy-house-in-minneapolis","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-buy-house-in-minneapolis\/","title":{"rendered":"Cold Winters, Hot Housing: How to Buy a House in Minneapolis"},"content":{"rendered":"

Minneapolis, Minnesota, consistently ranks on lists of the top places to live in the United States. According to U.S. News World Report, it\u2019s the sixth-best metro area<\/a> in the nation, and it\u2019s No. 13 out of 100<\/a> best places to live on Livability\u2019s list.<\/p>\n

Why? Jobs, economy, and quality of life. Many people are drawn to the city by its 17 companies on the Fortune 500 list<\/a>, an unemployment rate that hovers around 1% lower than the national rate<\/a>, or the outdoor-centered lifestyle enjoyed by its residents.<\/p>\n

If this is you, it\u2019s important to learn about the realities of house hunting in Minneapolis. Houses in this region need to stand up to some brutal winter weather<\/a> so the age of windows, the roof<\/a>, and the furnace should be a top concern. Finding the perfect home can be an overwhelming journey, but if you don\u2019t know what you\u2019re getting into, you could pay heating bills of $600 a month or more.<\/p>\n

We interviewed experts like top-performing real estate agent Mark Abdel<\/a>, who has spent 14 years helping buyers in Minneapolis, and he says the strong schools, healthcare, and high median income all continue to attract people to the area. Given the competition, it can be hard to find your perfect home: you\u2019ll have to know where to look and connect with the right agent.<\/p>\n

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Source: (Sharon McCutcheon\/ Unsplash)<\/figcaption><\/figure>\n

Start with your budget in Minneapolis<\/h2>\n

High demand and low supply both contribute to the tight housing market in Minneapolis. Decently priced homes in desirable neighborhoods sell within a day, and often for above the asking price. The median price of sold homes hit $290,000 as of June 2019<\/a>, setting a new record.<\/p>\n

Despite higher home prices, high rents are pushing many into the housing market. The average rent for a two-bedroom apartment was $1,847<\/a> in June 2019, and you might have to pay for utilities separately. Larger landlords often require that renters purchase renter\u2019s insurance, too.<\/p>\n

By comparison, the mortgage for a $290,000 house with 20% down at October 2019 market interest rates would be $1,192<\/a>. If rent plus utilities plus renter\u2019s insurance is higher than a mortgage payment, then it makes sense to buy.<\/p>\n

When determining your budget, don\u2019t forget that Minnesota charges more property taxes to non-owner occupied homes. To get the owner-occupied rate, you have to homestead your house. Homesteading requires you to complete and file forms with the city<\/a> stating you will be living in the house.<\/p>\n

The average property tax rate in the city is 1.345%<\/a> higher than the national average. However, the average includes non-homesteaded properties, so this number is a bit misleading.<\/p>\n

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Source: (Nikolay Donev\/ Shutterstock)<\/figcaption><\/figure>\n

Get the lay of the land in Minneapolis<\/h2>\n

The city\u2019s major highways have carved out Minneapolis neighborhoods, creating pockets of delightful charm that are still easily accessible. Abdel\u2019s favorites include Linden Hills, Fulton, and Nokomis.<\/p>\n

Linden Hills<\/h4>\n

Tucked between Lake Bde Maka Ska and Lake Harriet, Linden Hills<\/a> is one of the city\u2019s oldest neighborhoods. Tall trees shade winding roads and bike paths, and large front lawns lead up to imposing brick and stucco homes. It could be a great area for you if you:<\/p>\n