An analysis of projected home values and growth rates across 19 Minnesota cities reveals intriguing patterns in the state’s housing market through November 2025, according to the Zillow Home Value Index for November 2024. The data presents a complex picture where the highest-valued markets aren’t necessarily showing the strongest growth potential, with Minneapolis – the state’s economic center – being the only city projecting a decline at -0.8%. Notably, smaller regional centers like Austin, Brainerd, and Worthington are showing the most robust growth projections in the 3.3-3.4% range, while medical powerhouse Rochester, despite having the highest current values at $319,722, projects modest 1.1% growth. The market reveals clear geographic patterns, with southern Minnesota cities generally showing stronger growth potential than their northern counterparts, and smaller industrial and agricultural centers outpacing larger metropolitan areas in projected appreciation.
Perhaps most striking is the inverse relationship between current home values and projected growth rates, with cities having median home values under $250,000 generally showing higher expected appreciation than those above $300,000. The findings suggest a potential market correction in play, with more affordable markets catching up to their higher-priced counterparts. Manufacturing centers are showing particular resilience, with cities like Austin and Worthington – both anchored by strong food processing industries – leading in projected growth. Tourism-driven economies like Brainerd are also showing remarkable strength, while traditionally stable healthcare-driven markets like Rochester and educational centers like Mankato are projecting more modest gains.
1. Austin, Minnesota
Positioned in Mower County along the Cedar River, Austin lies about 100 miles south of Minneapolis near the Iowa border. The city is famous as the headquarters of Hormel Foods and home of the SPAM Museum. Food processing dominates the local economy, particularly the Hormel facilities. Despite having the lowest current values at $174,395, the city shows the strongest projected growth of 3.4% to $180,325.
2. Brainerd, Minnesota
Positioned in central Minnesota’s Crow Wing County, Brainerd is surrounded by hundreds of lakes and forests that make it a prime tourist destination. The city serves as a gateway to the state’s northern lake country. Tourism and outdoor recreation fuel the local economy, particularly in the summer months. Housing values show strength at $282,103 with a robust projected growth of 3.3% to $291,412.
3. Worthington, Minnesota
Positioned in Nobles County in southwestern Minnesota, Worthington lies along Interstate 90 near the Iowa border. The city is known for its annual Turkey Day celebration and Lake Okabena. Food processing and agricultural services dominate the local economy. Housing values currently stand at $223,287 with a strong projected growth of 3.3% to $230,656.
4. Owatonna, Minnesota
Located in Steele County, Owatonna sits 65 miles south of Minneapolis along Interstate 35. The city is known for its unique State Bank building designed by Louis Sullivan and its historic downtown district. Manufacturing and retail form the cornerstone of the local economy. Current home values of $280,634 are projected to grow by 3.1% to $289,333.
5. Hutchinson, Minnesota
Situated along the South Fork of the Crow River in McLeod County, Hutchinson lies about 60 miles west of Minneapolis. The city is known for its extensive park system and trail network. Manufacturing, particularly 3M’s local facility, anchors the economy. Current home values of $282,372 are expected to grow by 2.6% to $289,714.
6. Winona, Minnesota
Situated between towering bluffs and the Mississippi River in Winona County, this picturesque city lies 116 miles southeast of Minneapolis. Its position amid dramatic river valley scenery makes it a popular tourist destination. Education and manufacturing, including Fastenal Company, anchor the local economy. Housing values currently sit at $234,206 with projected 2.6% growth to $240,296.
7. Bemidji, Minnesota
Situated in Beltrami County at the headwaters of the Mississippi River, Bemidji lies about 200 miles north of Minneapolis. The city is known as the “First City on the Mississippi” (highly debated lol) and features the famous Paul Bunyan and Babe the Blue Ox statues. Education and tourism, anchored by Bemidji State University, drive the local economy. Current home values of $204,735 are expected to grow 2.5% to $209,854.
8. Albert Lea, Minnesota
Situated in Freeborn County at the intersection of two interstate highways, Albert Lea sits 90 miles south of Minneapolis. The city is known as “The Land Between the Lakes” due to its position among three lakes. Manufacturing and healthcare anchor the local economy. Current home values of $163,652 are projected to grow 2.4% to $167,580.
9. Willmar, Minnesota
Located in Kandiyohi County, Willmar sits amid prime farmland about 95 miles west of Minneapolis. The city is surrounded by numerous lakes and serves as an agricultural service center. Agribusiness and food processing dominate the local economy. Current home values of $231,704 are projected to grow 2.2% to $236,801.
10. Duluth, Minnesota
Perched on the western tip of Lake Superior in St. Louis County, Duluth offers dramatic hillside views of the world’s largest freshwater lake. The city serves as a major Great Lakes port and regional center. Shipping, healthcare, and tourism form the economic foundation, with the port handling significant grain and iron ore traffic. Current home values of $264,090 are expected to increase 2.1% to $269,635.
11. Alexandria, Minnesota
Located in Douglas County, Alexandria is surrounded by numerous lakes in west-central Minnesota, about 130 miles northwest of Minneapolis. The city bills itself as the “birthplace of America” due to its controversial Kensington Runestone. Tourism and manufacturing, particularly in the marine and recreational vehicle sectors, drive the local economy. Home values currently average $268,868 and are projected to grow 1.9% to $273,976.
12. Faribault, Minnesota
Located in Rice County, Faribault sits at the confluence of the Cannon and Straight Rivers, 45 miles south of Minneapolis. The historic downtown features well-preserved 19th-century architecture. Manufacturing, particularly food processing and industrial equipment, drives the local economy. Home values currently average $283,447, with a projected 1.9% increase to $288,832 by late 2025.
13. Fergus Falls, Minnesota
Located in Otter Tail County, Fergus Falls sits amid a landscape of lakes and rolling hills about 180 miles northwest of Minneapolis. The city is known for its historic state hospital building and beautiful river views. Manufacturing and healthcare form the backbone of the local economy. Housing values average $187,598 with projected 1.7% growth to $190,787.
14. Marshall, Minnesota
Situated in Lyon County in southwestern Minnesota, Marshall lies amid vast prairie farmland about 150 miles from Minneapolis. The city serves as a regional center for education and commerce. Food processing and education, particularly Southwest Minnesota State University, drive the local economy. Housing values average $227,911 with projected 1.4% growth to $231,101.
15. Mankato, Minnesota
Nestled in the Minnesota River Valley, Mankato serves as the seat of Blue Earth County and sits 75 miles southwest of Minneapolis. The scenic city is surrounded by bluffs and serves as a regional hub for southern Minnesota. Education and manufacturing form the backbone of the local economy, with Minnesota State University-Mankato being a major presence. Current home values of $290,041 are expected to increase by 1.3% to $293,811.
16. New Ulm, Minnesota
Located in Brown County along the Minnesota River, New Ulm sits 90 miles southwest of Minneapolis. The city is famous for its German heritage and distinctive Hermann Monument overlooking the valley. Manufacturing and food processing, including major employers like 3M and Kraft, anchor the local economy. Current home values of $225,119 are expected to grow 1.2% to $227,820.
17. Rochester, Minnesota
Situated in southeastern Minnesota’s Olmsted County, Rochester lies along the Zumbro River about 85 miles southeast of Minneapolis. The city is globally renowned as home to the Mayo Clinic medical center. Healthcare dominates the local economy, with the Mayo Clinic employing over 30,000 people. Housing values reflect the city’s prosperity, with current prices at $319,722 and a modest projected growth of 1.1% bringing values to $323,239 by late 2025.
18. Red Wing, Minnesota
Nestled among the bluffs of the Mississippi River in Goodhue County, Red Wing sits 50 miles southeast of the Twin Cities. The city is famous for its scenic river views and historic downtown. Manufacturing, particularly Red Wing Shoes, remains the cornerstone of the local economy. Housing values currently stand at $274,290 with a conservative projected growth of 0.9% to $276,759.
19. Minneapolis, Minnesota
Located in Hennepin County, Minneapolis is the state’s largest city and forms the “Twin Cities” with neighboring St. Paul. The Mississippi River flows through the heart of this vibrant metropolis that serves as the cultural and economic hub of the Upper Midwest. The city’s economy centers around commerce, finance, and healthcare, with major employers including Target Corporation and several leading medical facilities. Current home values stand at $314,387, though projections suggest a slight decline of 0.8% to $311,872 by November 2025, making it the only analyzed city expecting negative growth.
