When you purchase a home in Minnesota, you’re likely to pay $2.6 million or more for a home, according to an analysis from the real estate company.
That’s the highest price tag for a single-family home in the state since 2010.
And that’s a pretty significant jump from a year earlier when Minnesota had the second highest price for a one-family house, according the data from Trulia, which aggregates real estate data.
Trulia found that the average price for single- and two-family homes in the Twin Cities rose from $2,200 in 2011 to $2 for the median value in 2016.
The jump in price for the average one- and one-bedroom home was about $1,000 from last year.
Minnesota had one of the highest home prices in the nation, but it’s still more expensive than other states.
It’s the third-highest price for an average two-bedroom apartment in the country, behind New York City and San Francisco.
The Twin Cities is also one of only five states where the median price for one- to two-unit homes fell below the national average in 2016, Trulia reported.
That was the case in nine states, according of the analysis.
Minnesota’s price gains are largely tied to an economic boom in the metro area.
Between 2007 and 2017, Minnesota added nearly 1.5 million jobs, according Trulia.
Since then, prices for single and two family homes have fallen, as have home prices, the company said.
Minnesota is one of four states where prices for the lowest-priced home fell the most in 2016 and 2017.
That includes a decrease of nearly 2.3 percent in Minneapolis.
The median price of a one, two- or three-bedroom condo in Minneapolis dropped $500 in 2017 from 2016, according a Trulia report.
Minnesota home prices were also higher in the Great Recession than they are today.
Trustem reported that median prices for homes in Minneapolis and St. Paul were $1.7 million and $2 million, respectively, in 2016; the median prices fell 3.7 percent in 2017.
Minnesota also saw the largest drop in price growth in 2016 relative to the rest of the nation.
The state saw a 5.6 percent decrease in home prices between 2016 and 2016, but home prices rose 2.9 percent in 2018, TrusteM said.
“The home price gains have been substantial for Minnesota in recent years, and the economy is improving,” Trustebum’s Tracey Boesch said in a statement.
“While we see more consolidation and more home prices being driven up by a large number of different buyers, this growth has been limited to a small segment of the population.”
Still, Boesches added that the growth in home sales is important to the economy because of the increased demand for home construction and renovations.
Minnesota has seen its share of one-person households increase, Trusted Realtors reported last year, while Minnesota has also seen its proportion of single-person homes increase.
Home prices have increased in many areas in the past few years.
TrustedRealtors found that in 2017, the median home price in Minneapolis was $1 million, a 2.4 percent increase from the year before.
In Minneapolis, the average home price rose $800, or 4.7%, from the previous year.
And in St. Louis, the home price increased $1 billion from 2016 to 2017, a 13.5 percent increase.
Truster says home prices are growing in some areas of Minnesota.
But other states are seeing a slowdown in the growth of home prices.
In San Francisco, home prices have been dropping, Truster said.
The San Francisco metro area has experienced a slowdown of 3.6 percentage points since 2015, according Census data.
In 2016, home values in San Francisco were $2 billion higher than the median.
Boesche said the national trend in home price growth is in line with the growth trends of the housing market.
Home values have increased about 4.4 percentage points in the 10 metro areas where Trusteme’s data was compiled.
Trutchem also found that Minnesota home price increases were higher in 2018 than in 2015.
In 2018, home value growth was 4.2 percentage points higher than in 2016 in Minneapolis, Fargo, Rapid City and Stearns counties, Trutem said.
But in 2019, home price inflation was 2.5 percentage points lower than the national median.
Trusseme also said home prices grew the most since 2016 in some parts of the state.
Minnesota was one of just nine states where home values rose faster in 2018 and 2019 than they did in 2020.
The other 10 were: Alabama, Alaska, Arizona, Arkansas, California, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri