Housing Costs in Eagan, MN: Complete 2025 Guide

The Housing Market in Eagan Today

Eagan, a thriving suburb of the Twin Cities, has seen steady growth in its housing market in recent years. Situated just south of St. Paul and Minneapolis, Eagan benefits from its proximity to major employers like Thomson Reuters, Blue Cross Blue Shield of Minnesota, and Prime Therapeutics. This strong job market, combined with Eagan’s highly-rated schools and abundant parks and trails, has made it an attractive destination for families and professionals.

Compared to neighboring cities like Bloomington and Burnsville, Eagan’s housing market tends to be slightly more expensive, reflecting the city’s desirable amenities and location. However, prices remain more affordable than in Minneapolis or St. Paul proper. As the Twin Cities metro area continues to grow, Eagan is poised to see continued demand for housing, both from renters and buyers.

For those considering a move to Eagan, it’s important to understand the various factors that influence housing costs in the city. From property taxes to HOA fees to utility costs, there are many expenses to consider beyond just rent or mortgage payments. In the following sections, we’ll break down these costs to help you make an informed decision about housing in Eagan.

Renting in Eagan: Typical Costs and Trends

As of 2025, the median rent for a 1-bedroom apartment in Eagan is around $1,400 per month, while a 2-bedroom typically goes for about $1,800. These prices are on par with other desirable suburbs in the Twin Cities area, but notably higher than in more outlying communities.

Eagan’s rental market is particularly popular with young professionals and families who appreciate the city’s strong schools, safe neighborhoods, and easy access to jobs in the Twin Cities via I-35E and I-494. Apartments near major employers or along transit lines, such as the METRO Blue Line extension (set to open in 2027), often command higher rents.

Renters can find more affordable options in neighborhoods further from the city center, such as Cedar Grove or Lexington-Diffley. However, even in these areas, expect to pay at least $1,200 for a 1-bedroom and $1,500 for a 2-bedroom. Those seeking luxury amenities like in-unit laundry, fitness centers, or pools should budget at least $1,800 for a 1-bedroom and $2,200+ for a 2-bedroom.

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

As of 2025, the median home price in Eagan is around $450,000, reflecting a steady increase over the past decade. However, prices can vary significantly depending on the neighborhood, age of the home, and property size. Newer construction and homes in desirable areas like Wildflower or Lexington Pointe often sell for $600,000 or more.

In addition to mortgage payments, Eagan homeowners must budget for property taxes. The city’s effective property tax rate is approximately 1.2%, slightly lower than some neighboring communities but still among the highest in the country. For a $450,000 home, this equates to about $5,400 per year or $450 per month.

Many neighborhoods in Eagan, particularly newer developments, have active homeowners associations (HOAs). HOA fees can range from $200-$500+ per month, depending on the community and amenities. These fees typically cover services like trash removal, snow plowing, and landscaping, as well as maintenance of shared facilities like pools, playgrounds, and trails. While these costs can add up, many homeowners appreciate the convenience and consistency that HOAs provide.

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

Utility & Upkeep Differences

In general, houses in Eagan tend to have higher utility costs than apartments, simply due to their larger size. Heating costs can be particularly high during Minnesota’s frigid winters. Homeowners should budget at least $200-$300 per month for gas and electric, plus $100+ for water and trash service.

Apartments, while smaller, may still have relatively high utility costs if they are not well-insulated or have older appliances. Renters should expect to pay around $100-$150 per month for a 2-bedroom unit, though some complexes may include certain utilities in the rent.

Maintenance is another key area where houses differ from apartments. While renters are generally not responsible for repairs or upkeep, homeowners must budget for ongoing maintenance tasks like lawn care, snow removal, HVAC tune-ups, and inevitable repairs. Setting aside at least $200 per month is prudent to cover these costs.

5-Year Rent vs Buy Outlook

Over a 5-year period, renting in Eagan tends to be more affordable than buying, assuming a 20% down payment and today’s interest rates around 4%. The total cost of renting a 2-bedroom apartment for 5 years is approximately $118,000, compared to $234,000 for owning a median-priced home.

However, this calculation doesn’t account for the equity gained through homeownership. Assuming a modest 2% annual appreciation rate, a $450,000 home would be worth nearly $500,000 after 5 years. So while owning has higher upfront and monthly costs, it can be a smart long-term financial move, especially for those who plan to stay in Eagan for several years.

Of course, renting offers greater flexibility and predictability, which may be preferable for those who may need to relocate for work or who don’t want the responsibilities of homeownership. Ultimately, the rent vs buy decision depends on your personal circumstances, long-term goals, and budget.

FAQs About Housing Costs in Eagan

• How much are HOA fees in Eagan?
  HOA fees in Eagan typically range from $200-$500 per month, depending on the neighborhood and amenities. Some communities may charge as much as $800+ for luxury services.
• What is the property tax rate in Eagan?
  The effective property tax rate in Eagan is approximately 1.2% as of 2025. For a home valued at $450,000, this equates to about $5,400 per year.
• Is renting cheaper than buying long-term in Eagan?
  Over a 5-year period, renting in Eagan is generally more affordable than buying. However, homeownership can be a better long-term financial investment, as you build equity over time.
• Do houses have higher utility costs than apartments?
  Yes, houses in Eagan tend to have higher utility costs than apartments, due to their larger size and greater heating/cooling needs. Expect to pay at least $200-$300 per month for utilities in a typical single-family home.

Making Smart Housing Choices in Eagan

As this breakdown shows, housing costs in Eagan involve much more than just rent or mortgage payments. From property taxes to HOA fees to maintenance costs, there are numerous factors to consider when deciding whether to rent or buy.

For many, renting offers a more affordable and flexible option, particularly in the short term. Eagan’s thriving apartment market provides plenty of options for renters, whether you’re seeking a budget-friendly unit or luxury amenities.

However, for those planning to put down roots in Eagan, buying a home can be a smart investment. While the upfront costs are higher, homeownership allows you to build equity over time and offers greater control over your living space.

Ultimately, the right choice depends on your unique needs, preferences, and financial situation. But by understanding the full scope of housing costs in Eagan, you can make an informed decision and find the perfect place to call home in this vibrant Twin Cities suburb.