Real Estate Trends to Watch in 2025–2026: What’s Shaping the Twin Cities Market

Navigating the real estate market can feel overwhelming - but you don’t have to do it alone. The good news? 2025 is bringing opportunities for buyers, sellers, and investors across the Twin Cities.

Here’s what’s shaping the local housing market right now, and how you can use these trends to make confident, informed decisions.

Lifestyle-Driven Homes Are in Demand

Homes are no longer just places to live - they’re designed to fit life.Buyers want properties that support remote work, wellness, and sustainability. Think: home offices, natural light, energy-efficient features, and flexible spaces that can evolve with changing needs.

Sellers can take advantage of this by showcasing upgrades like smart thermostats, EV chargers, and versatile layouts that appeal to modern buyers.

Suburban and Small-Town Appeal Continues

Remote and hybrid work aren’t going away, and that’s keeping the demand strong in suburban and exurban areas like Maple Grove, Eagan, Woodbury, and Prior Lake.

People want space, community, and access to nature - without giving up proximity to city amenities. For investors, these areas offer long-term rental potential and strong appreciation.

Supply and Interest Rates Are Finding Balance

A balanced market in the Twin Cities is roughly a 3-month supply of homes, and we’re currently hovering just below that - around 2.6 months.

That means buyers are getting a little more breathing room, while sellers still benefit from steady demand.Mortgage rates remain moderate, and many economists predict gradual stabilization heading into 2026.

Translation? Now is a strategic window for both sides.

Technology and Transparency Are Reshaping Real Estate

From AI-driven property searches to virtual tours and digital closings, tech is making buying and selling more efficient.Clients today expect fast communication, data-backed advice, and agents who embrace innovation.

If you’re listing your home, ensure your marketing includes high-quality photography, video, and mobile-friendly digital listings - these tools make a major impact.

Long-Term Value Over Short-Term Hype

Whether you’re buying your first home or expanding your investment portfolio, focus on long-term fit and stability.The Twin Cities market is steady, diverse, and resilient - offering opportunities across price points and property types.

Takeaway

Real estate isn’t about timing the market - it’s about understanding it. My goal is to help you feel empowered, strategic, and supported through every step of your journey.

If you’re thinking about buying, selling, or investing in 2025, let’s talk about where the opportunities are right now.