Minnesota Real Estate Trends: Top Areas to Watch in April 2025

As we move into the heart of spring 2025, Minnesota’s real estate market is showing strong activity across both urban and suburban areas. Whether you’re looking to buy, sell, or invest, keeping an eye on the most in-demand neighborhoods can help you stay ahead of the curve. Here’s a look at the top trending areas for buying and selling homes in Minnesota right now.

Minneapolis: A Tale of Two Markets

Despite the ups and downs of recent years, Minneapolis continues to offer opportunity—especially in revitalized neighborhoods. Northeast Minneapolis is attracting young professionals and first-time buyers, thanks to its walkability, arts scene, and updated housing stock. Meanwhile, South Minneapolis, particularly the Nokomis and Longfellow neighborhoods, remains a hot seller’s market with limited inventory and strong demand.

St. Paul: Steady Growth with Historic Charm

Buyers are increasingly drawn to St. Paul’s blend of historic architecture and urban convenience. The Highland Park and Mac-Groveland neighborhoods are seeing quick sales and rising prices, while up-and-coming areas like Dayton’s Bluff offer value for those willing to invest in renovations. Sellers in these regions are benefiting from high competition and short days on market.

Suburban Surge: Twin Cities' Outer Ring Grows

Suburban areas have seen explosive growth over the last year, especially in communities like:

• Woodbury – Consistently ranked as one of the best places to live in Minnesota, Woodbury remains in high demand for its schools, parks, and new construction options.

• Lakeville – With a mix of affordability and modern amenities, Lakeville is especially attractive to growing families.

• Maple Grove – A strong retail and dining scene, along with new housing developments, continues to draw buyers from across the metro.

For sellers in these areas, now is an ideal time to list. Inventory remains tight, and buyer interest is high.

Northfield, Rochester & Greater Minnesota

Outside the metro, cities like Northfield and Rochester are seeing increased attention. Northfield offers small-town charm with strong educational institutions, while Rochester continues to thrive thanks to Mayo Clinic’s economic influence. These communities are appealing to both remote workers and retirees looking for quality of life and affordability.

Market Outlook

Interest rates remain stable, and while inventory is slowly improving, demand continues to outpace supply in many areas. Buyers should be prepared for competitive offers, especially in suburban and historic city neighborhoods. Sellers, on the other hand, are benefiting from strong appreciation and motivated buyers entering the spring season.

Thinking About Buying or Selling?
If you're considering a move or just want to know what your home is worth in today's market, I’d love to help. With deep knowledge of Minnesota’s neighborhoods and a personalized approach to every client, I’m here to guide you with confidence.