Buying your first home in Minneapolis can feel exciting and overwhelming at the same time. You want value, a livable commute, and a neighborhood that fits your lifestyle. In this guide, you’ll find clear, data-informed picks across price tiers, plus tips on transit access, financing help, and condo due diligence so you can shop with confidence. Let’s dive in.
How to set your budget
Recent reporting shows Minneapolis’ typical home values land in a range, with citywide medians often cited from about $316,000 to $350,000 depending on the data source and date. These differences reflect how each provider calculates prices and which sales they include. Treat them as guideposts, not hard targets.
Two factors can improve affordability for first-time buyers:
- Property type. Condos and townhomes often have lower list prices and more inventory than single-family homes. That said, budget for HOA dues, insurance, and taxes in your monthly cost. Local market updates note that condos frequently show higher months of supply than houses, which can give you more options and negotiating room. See a recent Twin Cities supply snapshot for context in this market update on inventory trends. Market update on inventory trends
- Metro context. The Twin Cities metro has hovered in the low-to-mid $300k to $400k range in recent statewide reports, which is useful if you’re comparing city neighborhoods to nearby suburbs. Minnesota REALTORS July 2025 report
Prices shift month to month and vary block by block. Use this guide to focus your search, then confirm current comps and monthly payment assumptions for any specific property.
Best starter neighborhoods
Below are first-home favorites organized by price tier. Neighborhood medians can differ by source and may move quickly. Use these as starting points, then refine around your must-haves.
Value tier: lower prices
- Near North. Many blocks remain among the more affordable pockets within city limits, with reported medians ranging from the low $200ks to high $300ks depending on the sub-area and source. Inventory can vary, and property condition may drive your final budget, so plan for thorough inspections.
- Powderhorn Park. Traditionally one of the city’s more approachable price points, with older single-family homes and small multifamily properties. Recent reports place medians in the low-to-mid $300ks, with wide swings month to month. You’ll find strong community amenities around the park and diverse housing styles.
Balanced tier: mid-range picks
- Longfellow. A classic south Minneapolis area with bungalows, duplexes, and tree-lined streets near river trails and Minnehaha Park. Recent medians have been cited from the low $300ks to upper $300ks depending on source. It’s a good fit if you value parks and a reasonable commute to downtown.
- Seward. Close to the river and the University corridor, Seward offers a mix of older homes and duplexes with strong transit options. Recent neighborhood medians often land in the mid $300ks to upper $300ks.
- Northeast (Nordeast). A popular choice if you want a lively arts and dining scene. Housing ranges from modest single-family homes to renovated industrial lofts. Recent medians have hovered around the mid-to-upper $300ks.
Premium starter pockets
- Nokomis / Minnehaha. Near Lake Nokomis and Minnehaha Park, this area draws buyers who want parks, paths, and a neighborhood feel. Market pages often show medians in the low-to-mid $300ks, with many tidy single-family options.
- Prospect Park / East River Road. Prices vary widely by sub-area and river proximity. Reports cite neighborhood medians from the upper $300ks to the mid $500ks. The Green Line and University access are major draws if you want transit and a short commute.
At-a-glance tiers
- Value: Near North, parts of Powderhorn Park.
- Balanced: Longfellow, Seward, Northeast.
- Premium starter: Nokomis/Minnehaha, Prospect Park pockets.
Commute and walkability
Minneapolis offers strong transit and bike infrastructure, which can expand your search radius while keeping commute times manageable.
- Light rail. The Green Line connects downtowns and the University corridor, and the Blue Line runs along the Hiawatha corridor to the airport. Neighborhoods near stations, like Prospect Park and parts of south Minneapolis, offer convenient access. Review current lines and service details with Metro Transit. Metro Transit rail and lines
- Bus and bikeways. Longfellow, Seward, and Northeast have frequent bus routes and good multi-use trails. If transit matters to you, ask for a door-to-door commute estimate at peak hours for any property you’re considering.
Financing help you can use
Down-payment assistance can bridge the gap for first-time buyers. Availability changes, so verify details before you apply.
- City and county programs. Minneapolis Homes: Access and Hennepin County partner programs offer targeted assistance with defined eligibility and award tiers. County program pages note that funding windows can close and reopen; at one point, countywide homebuyer assistance funds were paused with resumption expected in a later season. Review the City’s program design overview and check administrator pages for current status. Minneapolis program summary
- Minnesota Housing products. State programs such as Start Up and Step Up, and assistance for first-generation buyers, are part of the typical toolkit. Program amounts and income limits vary. Confirm terms on official program pages referenced in the City summary. Program overview reference
Tip: Get pre-approved and have a clear budget before you apply. Assistance funds often require approved lenders and specific timelines.
Monthly costs and taxes
Your monthly payment includes principal and interest plus property taxes, insurance, and any HOA dues.
- Property taxes. Hennepin County outlines how taxes are calculated, when assessments are mailed, and payment deadlines. Tax bills are generally due May 15 and October 15. You can review property tax history and payment options through the county’s portal. Hennepin County property taxes
- Insurance and reserves. Older Minneapolis homes can carry higher maintenance budgets. If you’re buying a condo, factor HOA dues and reserves into your affordability.
Condo and HOA checks
Condos can be a smart entry point, but you need to review the building’s financial health before you write an offer. Request and read:
- The most recent reserve study and annual budget
- Board meeting minutes for the past 12 months
- Special assessment history and any litigation disclosures
These documents help you gauge the risk of surprise assessments or deferred maintenance. For a consumer-friendly overview of what to ask and why it matters, see this guide on condo due diligence. Condo due diligence guide
Smart first-time buyer checklist
- Get pre-approved with a local lender and confirm your rate, fees, and monthly payment.
- Check eligibility for city, county, and Minnesota Housing assistance. Verify funding windows. Program overview reference
- Decide on property type. If considering a condo, collect HOA docs and review them with your agent.
- Schedule a thorough home inspection. Budget for near-term items like roof, HVAC, plumbing, electrical, and foundation.
- Test your commute at peak and off-peak. Confirm transit options and schedules. Metro Transit rail and lines
- Review property tax history and estimate your escrow. Hennepin County property taxes
- For families, verify school boundaries and recent district changes from official sources and local reporting. Minneapolis district restructure overview
Why a data-driven advisor matters
Minneapolis is a collection of micro-markets where one block can sell very differently from the next. A strong advisor will pull 6 to 12 months of sold comps on your target block, track days on market by property type, and model your monthly payment with taxes, insurance, and HOA dues. They will also help you match financing programs to your profile and timing.
With two decades of Twin Cities experience, a finance background, and hands-on neighborhood knowledge, our team brings the calm, data-first guidance you want for a first purchase. When the right home hits the market, we help you act fast and negotiate with confidence.
Ready to talk through neighborhoods, financing, and a step-by-step plan? Connect with Ewing Real Estate Group for a personalized first-home strategy.
FAQs
What are typical home prices in Minneapolis right now?
- Recent reporting often cites citywide medians from about $316,000 to $350,000 depending on the data source and date. Treat these as guideposts and confirm current comps for any property.
Which Minneapolis neighborhoods are most affordable for first-time buyers?
- Value-focused areas often include Near North and parts of Powderhorn Park, where reported medians have ranged from the low $200ks to the high $300ks depending on sub-area and condition.
How do condos compare to single-family homes for affordability?
- Condos usually offer lower prices and more inventory, but you must include HOA dues in your budget and review reserves, assessments, and building condition before you buy.
What down-payment assistance is available in Minneapolis and Hennepin County?
- Programs like Minneapolis Homes: Access, Hennepin County assistance, and Minnesota Housing products may help; availability and amounts change, so verify details before applying. Program overview reference
How reliable are neighborhood median prices I see online?
- Medians vary by data provider and can move quickly. Use them to frame your search, then rely on recent MLS comps for the specific block and property type you want.
Which transit lines should I consider for an easy commute?
- The Green Line (University corridor) and Blue Line (Hiawatha to the airport) offer strong access; check schedules and station proximity for any home you tour. Metro Transit rail and lines
When are property taxes due in Hennepin County?
- Hennepin County property taxes are generally due May 15 and October 15; review bills, assessments, and payment options on the county site. Hennepin County property taxes
How do school boundary changes affect my home search?
- Minneapolis has implemented boundary changes in recent years; confirm current boundaries and any updates through official district resources and local reporting. District restructure overview
