Starter Homes In This Minnesota City Now Cost Over A Million Dollars

If you're looking to buy your first home in this Minnesota city, count your pennies because they cost over a million dollars!

Real estate prices have been soaring here in the Land of 10,000 Lakes and across the country recently. According to a recent Zillow survey, the average 'starter home' (which is defined as a home, townhome, or condominium that is usually in the bottom third of home values in an area) is selling for an average of $196,611.

Zillow says that's an increase of just over 54 percent within the past five years, which has pushed the average age of a first-time homebuyer to 35, a year older than in 2019. But starter homes in many cities in the North Star State are higher than that. Take Minneapolis, for example, where the average starter home is priced at around $284,400, according to this Five Star Painting survey.

But not in THIS Minnesota city, however. Because it's one of just over 200 cities in the country where the average starter home will now cost you just a wee bit more than that. Like a million dollars!

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Zillow says that there are currently 237 cities in the U.S. where you'll need to shell out six figures to buy a starter home, up from just 84 cities back in 2019. Half of them are located in California. But the Gopher State is one of just 24 other states where you'll find one of those cities.

Now, the Bold North already has SIX million-dollar cities, where the average cost of a home is now over one million dollars. And this Minnesota city recently made THAT list as well. So which Minnesota city are we talking about?

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That would be Minnetonka Beach, located in Hennepin County, in the Twin Cities metro area. According to the city's website, the City of the Village of Minnetonka Beach is a 'boot-shaped peninsula located on Lake Minnetonka featuring 228 homes and 535 residents.'

And, yes, starter homes in the City of the Village of Minnetonka Beach are now selling for $1.08 million, according to this Minneapolis St. Paul Business Journal story. But those homes may be a bargain, as Zillow also says the average home price in Minnetonka Beach is now $2,002.027, the highest average price in the state, though it's down 1.6 percent from 2023.

Of course, you don't have to live on Lake Minnetonka in the Twin Cities to find million-dollar homes. Keep scrolling to see some fabulous homes worth at least a million dollars, all of which are located across other parts of Minnesota.

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