Housing Costs in Bloomington, MN: Complete 2025 Guide

The Housing Market in Bloomington Today

Bloomington, Minnesota, a vibrant suburb just south of Minneapolis, offers a diverse housing market shaped by its strong local economy and convenient access to the Twin Cities metro area. As a major employment hub anchored by companies like HealthPartners and The Toro Company, Bloomington attracts a mix of young professionals, families, and retirees seeking a high quality of life close to urban amenities.

Compared to neighboring cities like Edina and Richfield, Bloomington’s housing market is relatively affordable while still providing excellent schools, parks, and shopping destinations like the Mall of America. The city’s proximity to Minneapolis-St. Paul International Airport and major highways like I-494 and I-35W also makes it an appealing choice for commuters and frequent travelers.

In recent years, Bloomington has seen steady population growth and rising housing demand, particularly for single-family homes and luxury apartments. However, the city’s diverse housing stock, which includes a mix of older homes, new construction, and multi-family units, helps maintain a balanced market with options for various budgets and lifestyles.

Renting in Bloomington: Typical Costs and Trends

Renters in Bloomington enjoy a wide range of options, from cozy apartments to spacious townhomes. As of 2025, the typical rent for a 1-bedroom apartment in Bloomington ranges from $1,100 to $1,500 per month, while a 2-bedroom unit can cost between $1,400 and $2,000 monthly. Luxury apartments and those close to prime locations like the Mall of America or Hyland Lake Park Reserve tend to command higher rents.

Young professionals and couples often gravitate towards the Penn Avenue corridor and neighborhoods like Normandale Lake, which offer a mix of modern apartments, convenient shopping, and easy access to highways. Families and retirees may prefer the more residential areas like West Bloomington or Poplar Bridge, where larger apartment complexes and townhomes are more common.

Commuters appreciate Bloomington’s proximity to major employers in the Twin Cities, with many apartments located near bus lines and the METRO Blue Line light rail. This transit access can help offset transportation costs for renters who work in downtown Minneapolis or St. Paul.

Owning a Home in Bloomington: Prices, Taxes, and HOA Fees

Bloomington’s median home price in 2025 is around $350,000, which is competitive for the Twin Cities metro area. However, prices can vary significantly based on neighborhood, home size, and amenities. Newer construction and luxury homes in sought-after areas like Normandale Lake or Hyland Greens can easily exceed $500,000.

Property taxes in Bloomington are calculated based on Hennepin County’s tax rate, which is approximately 1.1% of a home’s assessed value as of 2025. For a median-priced home of $350,000, this translates to an annual property tax bill of around $3,850.

Many of Bloomington’s newer developments are part of homeowners associations (HOAs), which charge monthly or annual fees to cover shared expenses like landscaping, snow removal, and community amenities. HOA fees in Bloomington typically range from $200 to $400 per month, depending on the community and services provided. Some higher-end neighborhoods with extensive amenities like pools, fitness centers, and clubhouses may have fees exceeding $500 monthly.

Apartment vs House in Bloomington: Side-by-Side Costs

Utility & Upkeep Differences

Utility costs in Bloomington are influenced by Minnesota’s cold winters and warm summers, which lead to higher heating and cooling expenses. In apartments, these costs are often lower due to smaller square footage and shared walls that provide insulation. Houses, on the other hand, typically have higher utility bills due to larger spaces, individual heating and cooling systems, and more exterior walls exposed to the elements.

Maintenance and repair costs also differ between apartments and houses. Renters are generally not responsible for major repairs or upkeep, as these are handled by the landlord or property management. Homeowners, however, must budget for ongoing maintenance tasks like lawn care, snow removal, and routine repairs to plumbing, electrical, and HVAC systems. These costs can add up quickly, especially for older homes.

5-Year Rent vs Buy Outlook

Over a 5-year period, the cumulative cost of renting a 2-bedroom apartment in Bloomington at $1,870 per month would be approximately $112,200. In contrast, owning a median-priced home of $350,000 with a 30-year mortgage at a 3.5% interest rate would result in total payments of around $93,600 over the same period (including principal, interest, taxes, and insurance).

However, this comparison doesn’t account for the upfront costs of buying a home, such as the down payment and closing costs, which can be substantial. It also doesn’t factor in the potential appreciation of the home’s value over time, which can vary based on market conditions. Historically, home values in Bloomington have appreciated at a steady rate, but future growth is not guaranteed.

Ultimately, the decision to rent or buy in Bloomington depends on individual financial circumstances, long-term goals, and lifestyle preferences. Renting offers more flexibility and predictable monthly expenses, while buying a home can provide a sense of stability, tax benefits, and the potential for building equity over time.

FAQs About Housing Costs in Bloomington

• How much are HOA fees in Bloomington?
  HOA fees in Bloomington typically range from $200 to $400 per month, with some luxury communities charging over $500 monthly.
• What is the property tax rate in Bloomington?
  Bloomington’s property tax rate is approximately 1.1% of a home’s assessed value, as determined by Hennepin County.
• Is renting cheaper than buying long-term in Bloomington?
  Over a 5-year period, buying a median-priced home in Bloomington can be more cost-effective than renting a 2-bedroom apartment. However, this depends on individual circumstances and doesn’t account for upfront buying costs or potential home value appreciation.
• Do houses have higher utility costs than apartments?
  Yes, houses in Bloomington typically have higher utility costs than apartments due to larger spaces, individual heating and cooling systems, and more exterior walls exposed to the elements.
• What’s the monthly cost difference between apartments and houses in Bloomington?
  As of 2025, the monthly cost difference between renting a 2-bedroom apartment ($1,870) and owning a median-priced 3-bedroom home ($3,120) in Bloomington is approximately $1,250.

Making Smart Housing Choices in Bloomington

When evaluating housing costs in Bloomington, it’s essential to consider both the short-term and long-term financial implications of renting versus buying. While renting may offer more flexibility and lower upfront costs, owning a home can provide stability, tax benefits, and the potential for building wealth through equity.

To make an informed decision, start by assessing your current financial situation and future goals. Consider factors like your income, savings, debt, and credit score, as well as your desired location, amenities, and lifestyle. It’s also crucial to understand the full scope of expenses associated with each option, including not just monthly payments but also upfront costs, taxes, insurance, maintenance, and potential HOA fees.

For a more personalized analysis of your housing budget, check out our [Can You Afford to Live in Bloomington? Monthly Budget Guide](/bloomington-mn/monthly-budget/). This resource helps you break down your income and expenses to determine how much you can comfortably allocate towards housing costs. Additionally, our [Cost of Living in Bloomington, MN: What You’ll Really Spend in 2025](/bloomington-mn/cost-overview/) article provides a comprehensive overview of various expenses you can expect as a resident, beyond just housing.

If you’re considering a move to Bloomington, don’t forget to factor in the costs of relocating itself. Our [Best Moving Companies Guide](https://indexyard.com/best-moving-companies-guide/) can help you find reliable and affordable movers to make your transition as smooth as possible.

Ultimately, the key to making smart housing choices in Bloomington is to arm yourself with knowledge, carefully weigh your options, and select the path that best aligns with your financial goals and lifestyle preferences. By understanding the local market, considering both short-term and long-term costs, and planning ahead, you can find the perfect home in this vibrant and welcoming community.