Minneapolis Housing Crisis: The Data No One's Showing You

Jason Huerkamp · Living in MinneapolisApril 24, 202623:596.6K views

About this video

The average age of a first-time home buyer in America just hit 40. Here in Minneapolis and St. Paul, we're right there with that number — in some pockets, even worse. In this video, I break down the real data behind the Twin Cities housing crisis: median prices, the rate-sensitivity problem that makes our market the most sensitive in the country, why inventory collapsed, how institutional investors changed the starter home game, and what's actually shifting in 2026 that could finally work in your favor as a buyer.

Key takeaways

The National Association of Realtors reported in 2025 that the median age of first-time homebuyers hit a record 40.
The math as stated in the video: with a Twin Cities median of $375,000 (January 2026), 20% down is $75,000, plus $8,000 to $15,000 in closing costs. At 6% to 6.5%, principal and interest run about $2,000 a month, or roughly $2,600 to $2,700 with taxes and insurance.
NAR called the Twin Cities the most rate-sensitive housing market in the country: a one-point drop in rates would let about 81,000 more households here qualify to buy.
Three forces squeezed starter homes: owners holding 3% rates, investors buying entry-level homes as rentals from 2020 to 2023, and building costs too high to build homes under $300,000.
The frenzy has cooled: buyers can again negotiate, ask for rate buydowns and closing-cost help, and keep inspections.
What to do: know your full monthly cost, look at first-ring suburbs like Columbia Heights, Brooklyn Center, Robbinsdale, South St. Paul and Crystal, and check Minnesota Housing's first-time buyer and down payment programs at mnhousing.gov.

Questions this video answers

How much do I need to buy a median-priced home in the Twin Cities?

With the $375,000 median cited in the video, 20% down is $75,000 plus $8,000 to $15,000 in closing costs. Many first-time buyers put down less, and Minnesota Housing has down payment assistance programs.

Is there down payment help for first-time buyers in Minnesota?

Yes. Minnesota Housing (mnhousing.gov) offers first-time buyer loans and down payment assistance, with income and price limits. Check the current amounts and rules before you shop.

What are affordable suburbs near Minneapolis?

Jason suggests first-ring suburbs such as Columbia Heights, Brooklyn Center, Robbinsdale, South St. Paul and Crystal, which have lower prices than the most popular city neighborhoods.

Notes written by Huerkamp Home Group from this video. Figures are as stated in the video on April 24, 2026; check the current numbers in our market reports.