It’s true—buying takes more planning these days. But with strategy, creativity, and a long-term view, homeownership is still within reach. Because Minnesotans don’t just weather storms—we build through them.
The housing headlines might sound intimidating, and I’ll be the first to admit it’s maybe not as easy as it once was to buy a home. That being said, I’m a bit of an eternal optimist, or perhaps I’m just stubborn, either way… there are ways to get you into the market without selling the family farm or taking out a 100-year mortgage (just sayin’).
It’s no secret that affordability has shifted.
According to a recent report from Patch, Minnesotans now need to earn about $114,000 a year to comfortably afford a median-priced home around $390,000, based on current mortgage rates near 6.5%.
That number can sound daunting, especially when you consider that the state’s median household income is around $82,000. But that gap doesn’t have to mean “impossible.” It just means different.
The reality is that homeownership looks more strategic today than it did five years ago. Buyers are getting creative — saving intentionally, partnering with family members, exploring first-time homebuyer programs, and comparing down payment assistance or unique financing options that can bridge the gap.
Even within traditional financing, rates are softening, and price growth across the Twin Cities has started to level out. Homes are sitting a little longer, sellers are showing flexibility, and that creates opportunities for well-prepared buyers.
📊 By the numbers:
💰 $114,000 → annual income needed to afford a median Minnesota home
🏠 $390,000 → median home price statewide
📉 6.5% → average mortgage rate
👩👩👧 $82,000 → median household income
If you’re looking to buy this year or next, here are a few ways to approach it differently:
Play the long game. Focus on stability and equity growth rather than trying to time the market perfectly.
Ask about incentives. Minnesota has several first-time buyer programs, lender credits, and down payment assistance options that are often underutilized.
Think creatively. Contract-for-deed sales, shared-equity arrangements, or even small multi-unit properties can be smart stepping stones toward your long-term goals.
Yes, it’s a different landscape — but different doesn’t have to mean discouraging. With good guidance, preparation, and a clear strategy, there are still paths to homeownership that work.
Real estate has always reflected the seasons — and this one’s about building wisely. Maybe think twice about that 50-year mortgage (let’s dive into that one next week!), we want to be creative and also be set up for true success!