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The latest data shows that luxury and near-luxury homes in the Twin Cities — especially the Minneapolis/St. Paul region and affluent suburbs are heating up again. That’s great news if you’re thinking about remodeling, custom building, or upgrading outdoor living spaces.
Market Snapshot: Luxury Homes Are in Demand
- According to the October 2025 report from Realtor.com, luxury-tier homes in Minneapolis–St. Paul are selling 10.4% faster than a year ago.
- Meanwhile, luxury prices in the region continue to trend upward up 2.7% year-over-year in 2025.
- What’s more: for homes priced between $1 million and $2 million a common sweet spot for custom-built or high-end remodel projects with the average listing size in the region is roughly 4,148–4,162 square feet. That puts Twin Cities luxury real estate among the largest-sized homes in that price bracket nationwide.
In other words: wealthy and discerning buyers are active, seeking value, space, and quality not just the “luxury label.”
What That Means for Remodeling, Custom Builds & Outdoor Living
For a design + build / remodeling / outdoor-living company, these trends point to real opportunity:
- Investments in quality pay off — Sellers and buyers seem willing to pay top dollar for well-built, thoughtfully designed homes. Upgrading with high-end finishes or custom features could significantly boost value.
- Space is a premium differentiator — With larger-than-average square footage typical in the $1M–$2M range, there is real demand for spacious layouts, open-floor plans, luxury kitchens/bathrooms, and generous living areas — all of which you specialize in.
- Outdoor living matters — As buyers get more selective and lifestyle-focused, features like patios, decks, fire pits, outdoor kitchens, and landscaping become strong selling points. Homes with well-designed indoor-outdoor flow may stand out in this competitive luxury segment.
If you’re thinking about remodeling, building a custom home, or investing in outdoor living spaces — now may be one of the smartest times to do it in the Minneapolis–St. Paul area.
What the Market is Saying — And Why It Matters for You
Recent data from a fall 2025 housing-market report shows that luxury homes in the Twin Cities are selling faster than a year ago, with the “days on market” for high-end homes down about 10.4%.
Even more compelling: for homes priced between $1 million and $2 million — a very common budget for customized or upscale remodels — the typical listing size here is roughly 4,148–4,162 square feet. That makes Twin Cities buyers among the winners nationwide when it comes to how much space you get for your money.
In short, this market favors well-designed, spacious, high-quality homes. That’s where smart design + build, thoughtful remodeling, and quality outdoor-living upgrades can really pay off.
What That Means for Your Next Project
If you decide to build or remodel now, you’re asking yourself the right questions. Because:
- Buyers and homeowners are clearly valuing space, quality, and lifestyle — not just square footage or price tags.
- There’s a real opportunity to get more home for your budget than in many other U.S. markets — especially if you target that $1 M–$2 M buyer bracket.
- Properly designed outdoor living spaces, high-end finishes, open layouts, and lifestyle-oriented upgrades can make a home stand out in a competitive luxury segment — and strengthen resale value.
Ready to Build or Remodel? Here’s What We Can Do for You
When working with our design + build team, you get:
- Thoughtful custom-home designs that reflect the way you live — spacious floor plans, open flow, modern finishes, and smart layout choices.
- High-end remodels that add value, comfort, and style, whether you’re updating a kitchen, bathroom, living space, or entire home.
- Outdoor-living spaces designed for Minnesota living — decks, patios, outdoor kitchens, covered porches, fire-pit areas, landscaping and more — extending your living area beyond four walls.
- A seamless, guided process — from design and planning to final build — making it easier and less stressful for you to invest in your home.
If you’re ready to build a home that fits your lifestyle — or transform your current home into something that stands out and lasts — we’d love to talk.
Reach out today for a free consultation and let’s plan something great.
Plan Your Project Now
The Twin Cities luxury housing market is showing impressive strength heading into the end of 2025: rising prices, faster sales, and high buyer demand especially in the $1 M–$2 M bracket where home size and quality stand out.
Who Should Consider Working With Us Right Now
You might want to get in touch if you:
- Are planning a custom home build or major remodel in the $1 M–$2 M budget range.
- Want to maximize livable space and quality while staying competitive in resale value.
- Care about lifestyle upgrades — like a modern kitchen, open living, large master suite, or functional outdoor living.
- Want a turnkey, full-service design + build partner who can help translate your lifestyle, vision, and goals into a home that really meets the expectations of today’s luxury-market buyers.
Source: Realtor.com – This Surprising Midwestern Metro Emerges as a Luxury Market Powerhouse