You need to make nearly $90,000 annually to afford a starter home.
Minneapolis, MN, is known for its gorgeous lakes, abundant outdoor recreation, deep history, and snowy winters. In addition to being a cultural hub and unique place to live, Minneapolis is also home to a competitive real estate market that’s seen a surge in popularity over the past few years.
For many, buying a home in Minneapolis is a dream come true, but it’s also important to know how it will impact your finances. From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home
So whether you already live in the City of Lakes or are looking to relocate to the area, here’s a breakdown of the income you’ll need to purchase your first home in Minneapolis.
Check out our original report for a detailed nationwide analysis.
How much income do you need to buy a starter home in Minneapolis?
The median sale price of a starter home in Minneapolis is $255,000. In order to afford this, first-time homebuyers in Minneapolis should make $85,013 per year, up 7.2% from 2023. The median income in Minneapolis is $106,561, meaning the typical resident can afford a starter home.
Only California metros require a higher annual income to afford a starter home. Anaheim, Los Angeles, Oakland, San Diego, San Francisco, and San Jose all top $175,000.
As expected, starter homes in Minneapolis are more affordable than the average home (all price brackets combined; see methodology for details). In order to afford any median-priced home in the area, you’ll need to make $103,640 (as of October 2023).
Nationwide, you need an income of $75,849 to afford a typical starter home, which costs an average of $240,000. The average U.S. household earns an estimated $84,072.
First-time homebuyers’ guide to the Minneapolis housing market
Minneapolis has experienced a growing but changing market over the past few years. House prices have only risen by 8% since…