Building Costs Per Square Foot in the City of Minneapolis (MN), USA

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Residential Construction Market Analysis in the City of  Minneapolis (MN), USA

Luxury House in Minneapolis - 2427 E Lake of the Isles Pkwy - MN55405 - 4 Bedrooms and 8 Baths on GFA 8,323 sqft - Built in 1911 - $4,500,000 (7)

Luxury House in Minneapolis – 2427 E Lake of the Isles Pkwy – MN55405 – 4 Bedrooms and 8 Baths with 6 Attached Garages on Gross Floor Area 8,323 sqft – Built in 1911 – Price $4,500,000 (7)

Building costs are 13% above the national average in the City of Minneapolis in Minnesota, and equivalent to the states of Alabama, Arizona, Georgia, North Carolina and Virginia. Buying a property is one of the biggest dreams that people have, but it is also one of the biggest challenges. With the changing economy, inflation that seems to hit everywhere, and uncertainty that reigns in the real estate market, it can be scary to take the next step.

That is why we prepared this article with all the information you need to know about the Minneapolis real estate market and the residential construction market. In this way, you will have the necessary knowledge to know if it is the right place for what you are looking for or not.

Minneapolis (MN) Construction Outlook

Minneapolis is the most populous city in the state of Minnesota, generally better known than the state capital itself (Saint Paul). If its metropolitan area is combined with that of Saint Paul, it is the third largest in the region, only behind Chicago and Detroit.

This gives us the pattern that it is not a small town. The Minneapolis construction outlook also demonstrates the same. There are tall buildings, a handful of skyscrapers, and overall architecture that is becoming more and more modern.

Townhouses still have the heart of the people of Minneapolis, especially in the region near the center of the city (a few blocks away from the big buildings). It also has middle-class neighborhoods, filled with typical single-family homes.

It even has a Victorian neighborhood, with properties dating back to the 1800s, and is one of the most exclusive (and expensive) neighborhoods in the entire region. This helps show that Minneapolis has a diverse construction outlook, with something for everyone.

Minneapolis (MN) Housing Market Analysis and Forecast

The real estate market in Minneapolis (MN) is one of the most stable in the entire country since its numbers do not usually have sudden changes. In fact, if you look at the statistical graphs, you can see that it’s the closest thing to a straight line, with just a few high and low spikes.

This does not mean that it is always maintained in the same way, but it is more stable when compared to other cities, especially in the same region. The only changes or highest jumps in property values ​​are seen during the summer months, which is when the boom in the Minneapolis real estate market occurs.

Historically, the month of June is when property prices rise the most, increasing by 5% in just one month (that was the case this year, 2022), and in February is when it reaches its low peak, reaching a loss of 10% of the value of the properties.

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Therefore, if you are a seller, it is in your best interest to sell the property in the summer. Even though there are more properties listed (more supply) the demand is great enough to be able to sell your property quickly and at a good price.

During the winter as a seller, you will have fewer competitors, and the properties will take longer to sell, but if your house is in good condition, a buyer in distress may offer a higher amount of money.

As a buyer, whether you want to buy a property for yourself or are looking to invest in the Minneapolis real estate market, there are two things to keep in mind. If you don’t mind the variety of properties listed, then wait until winter for better prices there. If you need a property that is in very good condition or you want to have a variety to choose from, then summer is the ideal time for you.

Minneapolis (MN) Average House Price (Median Home Price)

The median home price value in Minneapolis is $327,000 for October 2022. Compared to the value this year, there was a total increase of 0.8%. Now, if we compare the current value with that of October 2021, there was an increase of 3.8% in the value of the properties (when the value was $325,000).

Do not forget that the median home value is obtained from all the properties listed in the city’s real estate market, so no distinction is made according to the type of property or the area in which it is located. That is why we will give you more exact numbers in each case below so that you know what the real numbers are that you can find.

The current median value of single-family homes is $336,000, with a total annual growth of 1.8%. In October 2021 these properties had a value of $330,000, so there was a 3.0% growth.

The most expensive neighborhood in Minneapolis is Lowry Hill, which is considered to be the only entirely upper-class neighborhood in this city. What makes properties so expensive is their age and historical value. They are properties that date from 1800, that is, from the Victorian era, and are in relatively good condition (in addition to the fact that they are all large).

Among the most affordable neighborhoods in Minneapolis are Cooper, Hale, and Linden Hills. It is not that the properties are bad or that the neighborhood is unsafe, but that they are neighborhoods in which almost the entire population has already aged (and their entertainment or services too), so they are not as attractive as others in the city.

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Proposed Residential Building Projects in Minneapolis (MN)

The residential construction projects that are being prepared in the city of Minneapolis are quite varied. In the coming years, an increase in the number of townhouses and condos/co-ops properties is expected, since most of the projects are of that style.

In Linden Hills, there are a large number of manufactured homes that are expected to go on sale to the general public in 2023 or early 2024. These homes are the typical ones that come made of wood, and then once installed on the land they add siding and insulation to make it withstand the Minneapolis winter without a problem.

In the case of the city center, there are some building projects. These are not the typical skyscrapers that you would be used to seeing in other cities, but they do have a considerable height, exceeding 15 floors. They are mostly completely residential buildings, and only a few have space designed for offices.

In the areas near the main Minneapolis university campuses, there are some projects of townhouses or small buildings (10 stories or less). These are designed to be temporarily rented by university students while they study, so it is a residential construction project aimed at rental properties.

Luxury House in Minneapolis - 4716 W Lake Harriet Pkwy MN55410 - 3 Bedrooms and 4 Baths with 2 Attached Garages on GFA 4,667 sqft - Built in 1996 - $2,650,000 (5)

Luxury House in Minneapolis – 4716 W Lake Harriet Pkwy MN55410 – 3 Bedrooms and 4 Baths with 2 Attached Garages on GFA 4,667 sqft – Built in 1996 – Price $2,650,000 (5)

Building Costs Per Square Foot for Single Family Homes in the City of Minneapolis (MN), USA

Building costs are 13% above the national average in the City of Minneapolis in Minnesota, and equivalent to the states of Alabama, Arizona, Georgia, North Carolina and Virginia.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in City of Minneapolis ranges from $389.73 per sqft to $597.43 per sqft, with the average being $459.93 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in City of Minneapolis ranges from $236.86 per sqft to $363.07 per sqft, with the average being $279.52 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

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Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in City of Minneapolis ranges from $153.12 per sqft to $232.57 per sqft, with the average being $179.26 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in City of Minneapolis ranges from $111.75 per sqft to $171.36 per sqft, with the average being $131.88 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in City of Minneapolis ranges from $90.71 per sqft to $138.91 per sqft, with the average being $106.96 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in City of Minneapolis ranges from $71.54 per sqft to $109.66 per sqft, with the average being $84.39 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.


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