Minneapolis, MN 55406 Real Estate Market Report

ZIP Code: 55406
Report Date: May 2026
Market Temperature: HOT
Scope: This ZIP code analysis focuses on single-family residential (SFR) properties. Metrics are calculated from recent sales and active listings within the past 90 days.

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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

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Market Trends & Context

Understanding Market Temperature

A Hot market indicates strong buyer demand with limited inventory, typically characterized by rising prices, quick sales (low days on market), and inventory levels below historical averages.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Minneapolis are 6.5%, which is 0.1% higher than the 2026 year-to-date average of 6.4%.

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 primary market indicator is the $340,500 median sold price, which reflects realized transaction values and recent market value for SFR and condo properties; up price momentum is consistent with the reported year-over-year trend and supports continued appreciation.

2. There is a notable pricing relationship between the $309,900 median listing price and the $340,500 median sold price, which may indicate pricing friction or competitive bidding where recent sales cleared above asking; monitor this gap as it suggests divergence between seller expectations and closed transactions.

3. Liquidity appears slower on a time-to-sale basis given the 228 median days on market, which should be read as reduced sales velocity rather than definitive weak demand; this slower turnover may lengthen decision horizons for investors and owners considering listing.

4. Rental fundamentals remain supportive for investors with a $1,395 median market rent and a rising rent trend, but affordability is constrained by financing costs—Current 30-year fixed mortgage rates in Minneapolis are 6.5%, which is 0.1% higher than the 2026 year-to-date average of 6.4%, and interest rate pressure is elevated.

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Notable Properties

The following 8 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.

Minneapolis, MN 55406 Real Estate Market Report

ZIP Code: 55406
Report Date: May 2026
Market Temperature: HOT
Scope: This ZIP code analysis focuses on condominium properties. Metrics are calculated from recent condo sales and active listings within the past 90 days.

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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

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Property Taxes

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Liquidity & Velocity

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Market Trends & Context

Understanding Market Temperature

A Hot market indicates strong buyer demand with limited inventory, typically characterized by rising prices, quick sales (low days on market), and inventory levels below historical averages.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Minneapolis are 6.5%, which is 0.1% higher than the 2026 year-to-date average of 6.4%.

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 neighborhood's primary market indicator is median sold price $173,450, which points to the current market value supported by recent transactions and aligns with a up price trend.

2. Despite price appreciation, the market exhibits slower transaction velocity: median days on market 304 suggests extended marketing time and may indicate pricing friction or selective buyer activity rather than rapid turnover.

3. Pricing density and rent context show mid-range asset economics: median price per square foot $179 and median market rent $1,450 together suggest rental demand is rising while sales prices remain elevated in per‑unit terms; note rent is up year-over-year.

4. Market conditions are competitive overall—market temperature is hot—but affordability is pressured by financing: interest rate environment is described as elevated and current mortgage conditions state that Current 30-year fixed mortgage rates in Minneapolis are 6.5%, which is 0.1% higher than the 2026 year-to-date average of 6.4%, which may temper buyer capacity and slow some transactions.

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Notable Properties

The following 8 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.