When it comes to Minnesota’s investment real estate market, there is a wealth of untapped opportunity. With its natural beauty, vibrant cultural scene, and impressive economic growth, Minnesota continues to capture the attention of real estate investors and real estate investment groups looking to capitalize on all the “Land of 10,000 Lakes” has to offer.
With CIVIC loan products now available in Minnesota, we decided to celebrate by taking a deep dive into the top opportunities in the Minnesota investment real estate market. From the best neighborhoods in Minneapolis to other expanding Minnesota markets like Saint Paul, Rochester, and Duluth, we’ll look at the hottest markets for 2025 and beyond.
With CIVIC loan products now available in Minnesota, we decided to celebrate by taking a deep dive into the top opportunities in the Minnesota investment real estate market. From the best neighborhoods in Minneapolis to other expanding Minnesota markets like Saint Paul, Rochester, and Duluth, we’ll look at the hottest markets for 2025 and beyond.
Identifying a Top Real Estate Market
Minnesota real estate investors must be able to identify the top real estate markets. So, what should you look out for? Aside from lush greenery and breathtaking natural scenery, investors should look for diverse real estate markets with strong:
- Job growth
- Employment rate
- Population growth
- Property appreciation
Whether you’re looking to invest in long-term rental properties, fix and flip homes, or new-build constructions, identifying cities and neighborhoods with each of these qualities will enhance your chances for investment success.
Real Estate Investments in Minneapolis, MN: Top Neighborhoods
Minneapolis by the numbers:
Average Home Sale price: $331,321
Average Rent Price: $1,580
With nearly 500,000 residents, Minneapolis is by far the largest city in Minnesota. Its diverse real estate landscape caters to a broad range of investors, buyers, and renters. Known as the cultural and economic heartbeat of Minnesota, Minneapolis boasts an ever-growing population and robust job market. Additionally, with average home sale prices ($331,321) well below national averages–$503,800 according to the Federal Reserve Bank of St. Louis–and affordable rent costs ($1,580 compared to $1,628), Minneapolis may hold the most potential in Minnesota’s investment real estate market for both short- and long-term investors.
Average Home Sale price: $331,321
Average Rent Price: $1,580
With nearly 500,000 residents, Minneapolis is by far the largest city in Minnesota. Its diverse real estate landscape caters to a broad range of investors, buyers, and renters. Known as the cultural and economic heartbeat of Minnesota, Minneapolis boasts an ever-growing population and robust job market. Additionally, with average home sale prices ($331,321) well below national averages–$503,800 according to the Federal Reserve Bank of St. Louis–and affordable rent costs ($1,580 compared to $1,628), Minneapolis may hold the most potential in Minnesota’s investment real estate market for both short- and long-term investors.
Top 3 Neighborhoods in Minneapolis
With so much opportunity throughout Minneapolis, CIVIC took a deeper dive into the metropolis to pinpoint the best neighborhoods for Minnesota real estate investors to target, including Linden Hills, Cooper, and Bryn Mawr.
Linden Hills
If you’re looking for a family-friendly atmosphere steeped in natural beauty, look no further than Linden Hills. Revered for its quaint streets, serene quality, and vast greenery, Linden Hills boasts a reputation for safety and simplicity. With low crime rates, great school systems, and a nurturing environment, the neighborhood is perfect for fix and flip or new build investors.
Cooper
Cooper offers more affordable options for investors and consumers. With a wealth of outdoor recreational options, including hiking, biking, and swimming, and a riverfront setting with white sand beaches, Cooper is a modestly priced real estate haven just on the outskirts of Minneapolis. Just 10 minutes from the downtown district, this neighborhood has all the natural desires of Minnesota with the amenities of a metropolitan area all in one.
Bryn Mawr
If you’re looking for true scenic investment properties in MN that are still linked to the urban scene, look no further than Bryn Mawr. Although it’s only 2 miles from Central Minneapolis, the neighborhood is sheltered by lush parkways, beautiful scenery, and a strong sense of community. With a charming intersection of shops and cafes, and great schools, Bryn Mawr truly offers a unique combination of natural beauty, community, and urban convenience for investors and consumers.
Saint Paul, MN
Saint Paul at a Glance:
Average Home Sale price: $293,563
Average Rent Price: $1,263
The Minnesota investment real estate market in its capital city, Saint Paul, has been expanding over the last decade. With extremely affordable single-family homes and rental options, a steady housing market, and great year-over-year appreciation rates (3.3%), Saint Paul is quickly gaining traction among Minnesota real estate investors and investment groups.
The city features diverse neighborhoods that can cater to various investment strategies, with countless affordable investment zones throughout its borders. For consumers, Saint Paul boasts a vibrant art scene, great schooling opportunities (including Saint Paul College and the University of Minnesota), and a quickly expanding job market.
Average Home Sale price: $293,563
Average Rent Price: $1,263
The Minnesota investment real estate market in its capital city, Saint Paul, has been expanding over the last decade. With extremely affordable single-family homes and rental options, a steady housing market, and great year-over-year appreciation rates (3.3%), Saint Paul is quickly gaining traction among Minnesota real estate investors and investment groups.
The city features diverse neighborhoods that can cater to various investment strategies, with countless affordable investment zones throughout its borders. For consumers, Saint Paul boasts a vibrant art scene, great schooling opportunities (including Saint Paul College and the University of Minnesota), and a quickly expanding job market.
Rochester, MN
Rochester at a Glance:
Average Home Sale price: $330,140
Average Rent Price: $1,420
Rochester offers robust opportunities for investment properties in Southeastern, MN. With a strong local economy, thanks to the presence of the nationally renowned Mayo Clinic, Rochester is consistently ranked as one of the best small towns in Minnesota. This gives local investors peace of mind, as properties throughout the city tend to sell quickly–both in home sales and rentals.
Rental year-over-year appreciation rates (3.9%) continue to outpace national averages (1.1%), making Rochester a great market for long-term investors. Additionally, with a growing population of over 125,000 residents and just over 50,000 available homes, the city offers a unique opportunity to new-build investors in 2025 and beyond.
Average Home Sale price: $330,140
Average Rent Price: $1,420
Rochester offers robust opportunities for investment properties in Southeastern, MN. With a strong local economy, thanks to the presence of the nationally renowned Mayo Clinic, Rochester is consistently ranked as one of the best small towns in Minnesota. This gives local investors peace of mind, as properties throughout the city tend to sell quickly–both in home sales and rentals.
Rental year-over-year appreciation rates (3.9%) continue to outpace national averages (1.1%), making Rochester a great market for long-term investors. Additionally, with a growing population of over 125,000 residents and just over 50,000 available homes, the city offers a unique opportunity to new-build investors in 2025 and beyond.
Duluth, MN
Duluth at a Glance:
Average Home Sale price: $279,262
Average Rent Price: $1,340
With an average home sale price just under $280k, Duluth is one of the most affordable metropolitan areas in Minnesota’s investment real estate market and throughout the North. That is why Duluth ranks among the best places to buy investment properties in Minnesota.
Aside from its affordability, the city is known for its scenic beauty. Located along the shores of Lake Superior, Duluth is a prime destination for both residents and tourists. Its aesthetic appeal, along with a strong education sector, maintains the city’s ongoing economic growth, housing demand, and home appreciation rates (3%).
Average Home Sale price: $279,262
Average Rent Price: $1,340
With an average home sale price just under $280k, Duluth is one of the most affordable metropolitan areas in Minnesota’s investment real estate market and throughout the North. That is why Duluth ranks among the best places to buy investment properties in Minnesota.
Aside from its affordability, the city is known for its scenic beauty. Located along the shores of Lake Superior, Duluth is a prime destination for both residents and tourists. Its aesthetic appeal, along with a strong education sector, maintains the city’s ongoing economic growth, housing demand, and home appreciation rates (3%).
CIVIC: Helping Investors Succeed in Minnesota’s Investment Real Estate Market
With CIVIC now available in the “Land of 10,000 Lakes,” Minnesota real estate investors now have access to our superior financial programs, real estate investment tools, and industry experts. If you’re looking to capitalize on investment properties in MN, CIVIC offers the tools and insights you need to succeed.
With flexible financing options, we can cater to your unique investment needs, offering plans for:
With flexible financing options, we can cater to your unique investment needs, offering plans for:
- Fix and Flip Investments
- 1-4 Unit Bridge Loans
- Ground-Up Construction Projects
- Rental & Rental Portfolio Strategies
If you’re ready to capitalize on a robust Minnesota investment real estate landscape, let CIVIC give you the tools to outpace the competition and succeed in today’s markets. CLICK HERE to schedule a FREE consultation today.
Authored by Bianca Montalvo
SEO copywriter and strategist
