Navigating the Minneapolis Real Estate Market in 2026

Every new year brings questions about the Minneapolis real estate market. Is now a good time to buy? Should you sell? What’s actually happening out there? As we move through 2026, one thing is clear: the market isn’t chaotic, frozen, or falling apart. It’s more thoughtful. And strategy matters more than ever.

Here’s what we’re seeing on the ground.

Market overview

Minneapolis has always been a neighborhood-driven market, and that hasn’t changed. What has changed is how buyers and sellers approach decisions.

We’re no longer in a rush-everything, bid-over-asking environment. But we’re also not in a wait-and-see standstill. Well-priced homes in strong locations still move. Others don’t.

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These are hard days in Minneapolis.  #HEARTMPLS

There’s a lot happening in our city right now, fear, uncertainty, tension and many of our residents, neighbors, clients, and local business owners do not feel safe in their own homes or communities. That weighs on us.

As a company rooted here since 2007,  we want to be clear about where we stand.

At the most basic level, every person deserves to feel safe in their home, in their neighborhood, and while going about daily life. Right now, that sense of safety is missing for many people around us.

We may not all see things the same way, but we can agree on this: our city needs empathy, calm leadership, and people willing to stand with their community, not turn away from it.

This is a moment to…

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Buyer Process

Buying a home is one of the most exciting milestones of your life, and being prepared can make all the difference. Knowing what to expect at each stage helps reduce stress and allows you to enjoy the journey. This step-by-step first-time buyer’s guide is designed to walk you through the process with confidence. For a more in-depth, personalized plan tailored to your goals, contact Isaac to schedule a buyer consultation.

1. Initial Consultation

We’ll start by sitting down to talk through your goals, the features you’re looking for in a home, your budget, and your ideal timeline. I’ll guide you step-by-step through the buying process so you know exactly what to expect from start to finish. By the end of our…

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DRG focuses entirely on the Minneapolis real estate market. Unlike firms that operate in multiple cities, DRG dedicates all resources to this area, including The North Loop, Downtown West, Northeast, Loring Park, and more. This focus allows the team to understand each neighborhood, building, and rental trend in real time, providing clients with accurate information and access to units.

Local Expertise

Founded in 2007 by Joe Grunnet, DRG has more than 15 years of experience helping clients seamlessly navigate the Minneapolis rental market. The team combines local knowledge with expertise in leasing, property management, and client services. Over the years, DRG has built strong trust with clients and local realtors. Agents provide guidance on…

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What if the Netflix characters Emily Cooper, Chuck Bass, and Cassie Howard all moved to Minneapolis? Where do you think these personalities would live, and why? We see Emily Cooper thriving in North Loop cafés and walkable streets as she searches for her next romance. Chuck Bass would dominate downtown luxury, where prestige and drama meet every corner. Meanwhile, Cassie Howard from Euphoria would shine in a DRG Tower Loft, mixing style, energy, and sophistication in the perfect modern space. What other characters or celebs do you see moving to our city?  Comment below!

1. Emily Cooper (Emily in Paris) → North Loop Loft

Walkable streets, trendy cafés, and boutique shops give Emily plenty of insta-worthy spots to explore—and maybe meet a cute…

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Winter in Minneapolis is pure magic and what better way to celebrate it than with our own original spiked eggnog recipe? To make the season even sweeter, we whipped up our very own DRG Eggnog, crafted with dairy, rum, and ground cinnamon—DRG! The perfect drink to sip on in your new cozy condo! Think of it as a little cup of holiday cheer, perfect for sipping by the fire, sharing at a festive gathering, or toasting to your next cozy home adventure. View our recipe below, and send us your own favorite Christmas recipes to joe@drgmpls.com.

Ingredients

  • 12 eggs, separated

  • 3 cups white sugar, divided

  • 16 fluid ounces dark rum (such as Captain Morgan® Spiced Rum)

  • 1 teaspoon ground nutmeg

  • 2 teaspoon ground…

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A two-billion-dollar budget proposal for the future of Minneapolis. A seven percent increase in spending. Mayor Frey, who was reelected this November, is recommending a new budget anticipated to be carried out by August 15th , 2026. The City Council has adopted the budget and will include a proposed property tax levy that will increase the price of Minneapolis homes, which Frey describes as “not a crisis budget,” but a “discipline budget.”  

The mayor’s proposal for spending will be solidified on December 11th, when the Minneapolis City Council is scheduled to vote. If approved, Minneapolis will increase its budget by $140 million in the coming of year. However, among federal funding shifts, Minneapolis is still expecting fiscal uncertainty.

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Most people associate home buying with the sunny spring and summer months, but there are compelling reasons to consider buying a home in the fall or winter. While fewer buyers are looking and the weather may be colder, these months can offer significant advantages for savvy buyers. Here’s why buying a home in the “off-season” might work in your favor.

1. Less Competition

In spring and summer, many buyers flood the market, leading to bidding wars and higher prices. In contrast, fall and winter see fewer buyers. This reduced competition means you’re less likely to face multiple bids on your dream home, which can keep prices lower and reduce the pressure to make quick decisions. Fewer buyers also allow you more time to thoroughly assess each property,…

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Helping You Buy a Home in MN Without Paying Interest

Many Muslim families in MN prefer Sharia-compliant financing, and the good news is that there are real, proven programs available today. My role as your realtor is to guide you through the entire process and connect you with lenders who offer true interest-free (halal) home-financing options, including:

• Guidance Residential – Declining-balance co-ownership (Musharaka)
• UIF – University Islamic Financial – Partnership and lease-to-own models (no interest)
• Devon Islamic Financing – Sharia-compliant home purchase programs

These are not conventional mortgages. They use structures like co-ownership, lease-to-own, or diminishing partnership, so you’re building equity without paying riba.

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If you're wondering whether downtown Minneapolis is safe in 2025, the short answer is yes. Downtown is safer today than it's been in years, and the data proves it.

Violent crime downtown dropped about 14 percent in 2023. Robberies and carjackings also fell by roughly one-third across the city heading into 2025 (Star Tribune). Gun-related incidents moved below pre-2020 levels for the first time in years (Star Tribune).

These aren't small improvements. They're signs of a steady, real turnaround.

But if the numbers look this good, why do so many people still believe downtown is unsafe? To understand that, we need to acknowledge the past and how Minneapolis is rewriting its story.

  1. WHY MINNEAPOLIS GOT A NEGATIVE REPUTATION
  2. WHAT THE…

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