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      Minneapolis, Minnesota, USA SKyline at Dusk
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      For Your Life November 3, 2025

      Real Estate Radar: First Time Homebuyers Guide to the Twin Cities

      Key Takeaways:

      • The Twin Cities attract first-time homebuyers with a robust job market, Fortune 500 presence, affordable cost of living, and rich cultural and outdoor amenities — earning Minneapolis a spot among the world’s happiest cities.

      • Despite limited inventory and quick home sales, local experts say the real estate market may be cooling slightly, offering new opportunities for prepared buyers.

      • Old National Bank’s local partnership and resources — such as down payment assistance, financial education, and personalized guidance — help first-time buyers navigate the Twin Cities market with confidence.

       

      For first-time homebuyers, reasons to buy a home in Minneapolis-St. Paul rival the number of lakes in the region — and that's a lot. The Twin Cities offer a healthy job market, abundant parks and outdoor activities, a thriving arts and culture scene, and a high-quality education system. These factors are part of why Minneapolis was included on the 2025 list of the world's happiest cities.

       

      The area's desirability also contributes to a competitive real estate market. Buyers, especially those looking for their first homes, may face limited inventory in the lower price ranges and properties selling for more than their asking price. But finding a great first home in the Minnesota metropolis is possible, especially when you have an experienced local lender guiding the way. Old National Bank's partnership with St. Paul-based Bremer Financial Corporation gives first-time home buyers access to 70 additional banking centers in the region, including 18 more locations in the Twin Cities.

       

      "Working with a local lender gives first-time homebuyers a true partner in the process," says Christie Crep, mortgage loan officer with Old National in Minneapolis/St. Paul. "The right lender can help you get pre-qualified before you begin shopping, so you feel confident searching for homes and neighborhoods that fit your price range.”


       

      An Economic Standout

       

      The Twin Cities' enviable economy boasts numerous Fortune 500 companies, a wide array of industries, and a highly educated workforce that fuels private and public business. Seventeen Fortune 500 companies are headquartered in Minnesota, including Target, 3M, and Best Buy, and the city ranks first in terms of Fortune 500 company concentration per capita.

       

      "Our economy is very diverse," Crep says. "That helps protect us from a lot of economic or industry fluctuations that impact other cities."

       

      The Twin Cities are not only a good place for businesses, but also for workers. Minneapolis-St. Paul has one of the lowest unemployment rates in the country, along with one of the highest labor force participation rates. And with the cost of living at about 7% lower than the national average, it's easy to see why the Twin Cities are an attractive place to call home.

       

      The Real Estate Response

       

      Real estate prices reflect the region's percolating economy. The median home sale price in Minneapolis was $337,223 according to Zillow's most recent data. Inventory remains a challenge for many buyers, especially those looking for a starter home. In response, buyers are making quick decisions on homes, forgoing inspections or shortening the time to close to make for more competitive offers.

       

      Zillow statistics show that homes sold in a median of 20 days, and 50% sold for above the list price. However, realtors in the Twin Cities report that the market may be cooling as buyers and sellers mitigate their expectations and slow their decision-making amid economic uncertainty.

       

      And, as expected with real estate, the opportunities can change depending on the buyer's timeline, budget, and desired location. For example, Crep says there are still starter homes and condos available in the metro area at lower price points, though some may require updating or repairs. Buyers tend to get more space for their money in the suburbs, which offer an excellent option for individuals and families who can commute to the city or work from home.

      4 Tips for Finding a Home in the Twin Cities

       

      Preparation is the key to finding the right home—at the right price—in a competitive real estate market. Crep offered the following tips for real estate success in the Twin Cities:

      1. Work with a Trusted Local Lender

      Meeting with a mortgage expert who understands your personal finances and the local market can help ensure your home search is fruitful. A local lender offers multiple advantages, including connecting buyers to other local real estate professionals, fielding your questions, and offering a partnership that lasts beyond your home purchase. "You want to work with a lender that follows you through the entire process," Crep says, adding that she often stays in contact with her clients after they close on their property.

      2. Understand the Financial Impact of Homeownership

      Preparing your personal finances for home ownership means understanding all the potential expenses, from the down payment to maintenance costs to HOA fees and more. A mortgage calculator can help you calculate possible payment amounts and compare loans. Crep recommends that first-time homebuyers take a homeowner education course that offers information and guidance on the financial impact of buying a home. "There can be costs and expenses the people don't expect," she says. Consider prequalifying for a mortgage; not only does it give you more information on how much you can reasonably spend, it shows sellers you are prepared and ready to make a deal. 

      3. Leverage Your Lender's Expertise and Specialized Loan Products

      With a clear sense of your budget, you can explore loan products designed to support your home purchase. For instance, Old National offers a down payment assistance program1 that provides eligible first-time homebuyers with 3% of the purchase price, up to $10,000. Down payment assistance can be combined with other state and local assistance programs, making homeownership more accessible for more buyers, Crep adds.

      4. Explore Neighborhoods Armed with Information

      As a first-time home buyer, you can shop with more confidence when you know the loan products2 available to you, are prequalified for a mortgage, and have established a budget. In a competitive environment, the preparation enables you to make faster, smarter decisions. "It can also take the emotion out of home purchases," Crep adds, because it helps you focus your search on homes and neighborhoods that meet your personal and financial needs.

      The Twin Cities provide numerous opportunities for first-time homebuyers looking to settle down in the Land of 10,000 Lakes. Connect with an Old National mortgage lender today to learn more about how our growing presence in Minnesota can help you achieve your homeownership dreams.

       

      1. Funds are limited; subject to availability. Amounts applicable in the following eligible counties (IL) Cook, DuPage, Grundy, Kane, Kendall, Lake, and Will; (MI) Kent and Washtenaw; (IN) Allen and Marion; (MN) Hennepin and Ramsey; (KY) Jefferson; (TN) Cannon, Davidson, Rutherford, Sumner, and Williamson; (WI) Dane and Milwaukee. Specific census tracts and other restrictions may apply. Program conditions subject to change. Old National reserves the right to discontinue program at any time. 

      2. All loan products are subject to credit review and approval. Property insurance is required for loans secured by real estate. Additional finance charges and closing costs may apply. Please contact your Mortgage Loan Officer for specific, customized pricing quotes to match your financial situation.

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