Experts Predict Another Increase in Minnesota Housing Costs for 2025

The cost of housing is out of control. Housing prices are still crazy and rent isn't affordable. Is there any relief in sight for Minnesota or across the US?

Minnesota's Housing Market Over the Past 5 Years

Let's go all the way back to October 2019. At that time, according to Redfin, the median sale price of a home in Minnesota was $255,800. This is before COVID and the housing market went nuts.

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In October of 2024, that number went up nearly $100,000. The median sale price of a home in Minnesota in October 2024 was $349,800.

As for interest rates today, Bankrate says Minnesota's interest rate for a 30-year fixed mortgage is 7.23%.

To my knowledge as a non-homeowner, interest rates right now don't seem too bad, but the cost of the home is still nuts. Is there relief in sight? The experts are out with their predictions for 2025.

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Experts Make Predictions on 2025 Housing Market

Economists with Zillow have released their predictions of the 2025 housing market. The website Fast Company writes that these predictions are comparing from October 2024 to October 2025.

Across the country, the experts say over the next year we will likely see home prices rise by 2.9%. The reasonings that they note are that the number of homes on the market is low and there are predictions that interest rates will decline over the next year. Because of this, the prices of homes will likely go up, but just a bit.

2025 Predictions for Minnesota's Housing Market

As for Minnesota specifically, they looked at the Twin Cities, Rochester, Duluth, St. Cloud, and Mankato areas of Minnesota. Lucky for us, home prices here aren't expected to climb as much as the national prediction, but not by much.

In Mankato they expect home prices to go up 1.5% over the next year.

In St. Cloud, they expect a 2.6% increase over the next year.

In Duluth, a 2.4% increase.

In Rochester, a 1.2% increase.

And in the Twin Cities, they expect home prices to go up 0.2% over the next year.

So the Twin Cities is predicted to see the least amount of change in housing prices. St. Cloud, on the other hand, is expected to get the hardest hit in the state.