Minneapolis, MN 55401 Real Estate Market Report

ZIP Code: 55401
Report Date: April 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

The median sold price in Minneapolis, MN (ZIP: 55401) is currently reflecting a market that has decreased 8% since 2022, indicating a notable shift in home values. This decline suggests that sellers may be adjusting their expectations in response to changing market conditions. The overall market temperature is classified as neutral, which implies a balanced environment where supply and demand are relatively aligned, though recent trends indicate a slight softening in prices.

Transaction activity appears to be moderate, characterized by elevated inventory levels relative to sales. This excess supply may indicate a slower sales velocity, as properties are taking longer to sell. Despite the downward trend in home prices, rental demand remains strong, with rents increasing year-over-year, supported by positive local economic indicators and easing interest rates. This dynamic may provide opportunities for investors looking to capitalize on the rental market while navigating the current home sale landscape.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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Property Taxes

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Liquidity & Velocity

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

Liquidity metrics unavailable due to insufficient data quality.

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Market Trends & Context

Understanding Market Temperature

A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Minneapolis are averaging 6.46%, which is 0.24% higher than the average rate of 6.22% seen in early 2026.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. The median sold price has decreased 8% since 2022, indicating a shift in market dynamics.

2. Transaction activity is moderate, with elevated inventory levels suggesting a slower sales velocity.

3. The market temperature is classified as neutral, reflecting a balance between supply and demand.

4. Rental demand is strong, with rents trending up, supported by positive local economic indicators.

5. Current interest rate pressure is classified as moderate, which may influence buyer behavior moving forward.

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Notable Properties

The following 4 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.