What Nobody Tells You About OLD vs NEW Homes in Minneapolis
About this video
Should you buy a brand-new home or an older home in Minneapolis? In this video, we compare the pros and cons of both, covering character, walkability, maintenance, energy efficiency, builder incentives, hidden costs, resale value, and commute times to help you make the right decision.
Key takeaways
- Older homes win on location and character: close to downtown, the lakes and restaurants, with walkable streets in places like Linden Hills, Longfellow and Northeast, mature tree canopies, and details like leaded glass, old-growth floors and laundry chutes.
- What to check in an older home: attic insulation and air sealing (weak spots cause ice dams), knob-and-tube wiring in homes built before about 1950 (many insurers want it replaced), boiler heat without central air, and the sewer line. Jason estimates a full sewer replacement at about $12,000 to $25,000, with lining about half that.
- Many older homes have detached garages, which some buyers regret in winter. Budget for surprises and never skip the inspection.
- New construction: Minnesota law requires a 1-2-10 warranty (one year on workmanship, two on mechanical systems, 10 on structure), and it transfers to the next owner. Current energy codes mean tighter walls, modern HVAC and far less ice-dam risk.
- Builder incentives can be strong (one builder advertised rates as low as 4.875% plus closing-cost help), but they're often tied to the builder's lender, so compare with an outside lender.
- Hidden costs of a new build: landscaping, a deck and window coverings can add $30,000 to $50,000, and you may get back only about half of that at resale. Selling within 2 to 3 years can mean competing with the builder's own incentives.
- Jason's rule of thumb: plan to move within about 3 years, lean toward an older resale home; staying 3 to 5 years or more, new construction can make sense. Test the commute on a real winter morning before you buy.
Questions this video answers
What is the 1-2-10 warranty on new homes in Minnesota?
Minnesota's statutory new-home warranty: one year on workmanship and materials, two years on plumbing, electrical, heating and cooling, and 10 years on major structural defects. It transfers to the next owner.
Should I buy an older home or new construction?
Older homes usually win on location, walkability and character; new construction on energy efficiency, low early maintenance and builder incentives. If you might sell within about 3 years, Jason leans toward an older resale home.
How much does it cost to replace a sewer line in Minneapolis?
Jason estimates about $12,000 to $25,000 for a full replacement from the house to the street, with lining about half that if the pipe has no large voids. Always scope the sewer line before buying an older home.
Read more: Linden Hills · Longfellow · Newest homes · Lakeville to downtown Minneapolis
Notes written by Huerkamp Home Group from this video. Figures are as stated in the video on July 21, 2026; check the current numbers in our market reports.
