This Surprising Midwestern Metro Emerges As A Luxury Market Powerhouse

In the heart of the Midwest is a metro that stands as the nation's most approachable, and perhaps surprising, luxury market: Minneapolis.

The entry point to luxury sits just below the $1 million mark, at $995,404, according to the latest Realtor.com® Luxury Housing Report. Minneapolis' luxury threshold has seen a 2.7% year-over-year increase, but it's still well under the national benchmark of $1.22 million.

"Luxury home prices in the Minneapolis/St. Paul market are still relatively low when compared to other metro areas across the U.S. with comparable amenities and comparable levels of Fortune 500 headquarters per capita," Nick Leyendecker, founder and principal broker at Leyendecker Realty Inc., tells Realtor.com.

"National luxury prices have softened, with the 90th-percentile threshold slipping to $1.22 million (-2.2% YoY), even as ultraluxury ticked up month over month to $5.41 million," explains Anthony Smith, senior economist at Realtor.com.

The report reveals that homes at the luxury tier in Minneapolis are moving quickly—with days on the market down 10.4% from last year, which shows strong buyer demand despite higher price points.

Realtor.com economists looked at data from Realtor.com listing trends as of October 2025, reflecting active inventory of existing homes, including single-family residences, condos, townhomes, row homes, and co-ops. 

It shows that the high-end luxury in Minneapolis begins at $1.55 million and ultra luxury starts at $3.48 million. These prices are more accessible than entry thresholds found in many coastal cities.

Million-dollar listings in the Twin Cities metro have also expanded, rising 10% year over year, just below the national trend of 11.3%, but still showing growing inventory in the market's higher tiers.

Minneapolis joins Heber, UT, and Boise, ID, as three markets where 10% of the most expensive homes are spending fewer days on the market than they were one year ago.

"This suggests that buyers in these areas are not only willing to meet rising prices but are competing for available inventory, signaling robust market health amid a generally easing housing market, and outpacing the national luxury trend," Smith says.

This six-bedroom, 6.5-bath home in Minneapolis is listed for $5,250,000. (Realtor.com) A remodeled 1907 home is commanding $2,275,000 and considered a "turnkey legacy property", according to the listing. (Realtor.com) A downtown Minneapolis condo with three bedrooms and 2.5 baths is listed for $2,595,000. (Realtor.com)

Spacious dwellings

One of Minneapolis’ defining advantages is space. Luxury buyers get far more home for their money there: Properties in the $1 million to $2 million range averaged 4,148 square feet in October, well above the national median of 2,990 square feet and the third-highest in the country.

Shoppers have a selection of existing and new-home construction with price points offering spacious square footage.

"We do have a robust new-construction market in the $1 million-plus markets in the Twin Cities, especially in the western suburbs where we have Lake Minnetonka as an amenity and some of the highest rated school districts in the country (Wayzata, Minnetonka, and others)," Leyendecker says.

Minneapolis may be located in the heart of Minnesota but nearby Lake Minnetonka stands out as the hot spot destination for locals and visitors. Waterfront properties are commanding luxury prices and attracting investors from all over.

But it's also attractive to residents who have made the Twin Cities home. Minneapolis is the corporate headquarters for companies like Target, UnitedHealth Group, Best Buy, and Land O'Lakes.

"Because of the relatively strong corporate job market, strong medical sector, and the area's history of entrepreneurial spirit, Minneapolis/St. Paul has a lot of relocation for corporate executives, high earning medical professionals, and high earning small business owners who seek property to fit their desired schooling, location, and lifestyle," Leyendecker says.

Says Smith, "The Minneapolis metro offers a compelling blend of livability, substantial square footage, and amenities that would command significantly higher premiums in other major U.S. markets."