The Housing Market in Saint Paul Today
Saint Paul’s housing market in 2025 is shaped by its position as the state capital and second largest city in Minnesota. While often overshadowed by its “Twin City” Minneapolis, Saint Paul has its own unique economic drivers and housing dynamics. Major employers like 3M, Ecolab, and Securian Financial Group help fuel demand for housing in the city.
Compared to Minneapolis, Saint Paul’s housing market tends to be slightly more affordable, with a larger supply of single-family homes vs. apartments and condos. The city’s numerous established neighborhoods, many developed in the early-to-mid 20th century, are a key part of its housing landscape. Areas like Highland Park, Summit Hill, and the West Side each have their own character and price points.
One factor that surprises many newcomers to Saint Paul is the impact of property taxes on housing costs. Minnesota has higher property tax rates than the national average, and this carries over to homeownership expenses in the city. Prospective buyers need to factor this into their budgets. The city’s chilly winters also influence housing-related costs, from heating bills to snow removal requirements.
Renting in Saint Paul: Typical Costs and Trends
As of 2025, renters can expect to pay around $1,100-$1,400 per month for a 1BR apartment and $1,400-$1,800 for a 2BR in Saint Paul. Prices are higher in desirable areas like Grand Avenue, Cathedral Hill, and Downtown, where a 2BR may cost upwards of $2,000 monthly. More affordable options can be found in neighborhoods like Dayton’s Bluff, Payne-Phalen, and the North End.
Saint Paul’s renter population includes a mix of young professionals, families, and students, thanks to the presence of several universities like Hamline, St. Catherine, and Concordia. Proximity to downtown Minneapolis also attracts commuters. Neighborhoods with easy access to I-94 and I-35E tend to command higher rents.
Heating costs are a key consideration for Saint Paul renters, given the long winters. Apartments in older buildings may be less energy-efficient, leading to higher utility bills. Renters should also budget for parking, as many parts of the city require permits or have winter parking restrictions. See our guide on the monthly costs of living in Saint Paul for a full expense breakdown.
Owning a Home in Saint Paul: Prices, Taxes, and HOA Fees
The median home price in Saint Paul stood at around $325,000 in 2025. However, this varies significantly by neighborhood and property type. A historic Victorian in Summit Hill or a new construction in Highland Park could easily cost $500,000+. More affordable single-family homes in the $250,000-$300,000 range can be found in areas like the East Side and North End.
Property taxes are a substantial expense for Saint Paul homeowners. The city’s effective property tax rate is around 1.3%, higher than the national average. On a $325,000 home, that equates to $4,225 per year or $352 per month. Prospective buyers should factor this into their housing budgets.
While less common than in some cities, Saint Paul does have some neighborhoods with homeowners associations (HOAs). HOA fees can range from $100-$400+ per month, depending on the community and amenities. In Saint Paul, these fees often cover services like snow removal, landscaping, and sometimes utilities. Condo owners may face higher HOA dues that also cover building maintenance and amenities.
Apartment vs House in Saint Paul: Side-by-Side Costs
| Monthly Expense | Apartment (2BR) | House (3BR) |
|---|---|---|
| Rent/Mortgage Payment | $1,600 | $1,950 (based on $325K home price) |
| Property Tax | N/A (included in rent) | $352 (1.3% effective rate) |
| Utilities | $150 (heating costs key) | $250 (higher for larger space) |
| Insurance | $15 (renter’s insurance) | $80 (homeowner’s insurance) |
| HOA Fees | N/A | $150 (only in some neighborhoods) |
| Monthly Total | $1,765 | $2,782 |
Utility & Upkeep Differences
Utility costs are a key differentiator between renting an apartment and owning a home in Saint Paul. Minnesota’s cold winters mean significant heating expenses. In an apartment, these are often included in rent, while homeowners have to budget for them separately. Larger single-family homes will naturally have higher heating bills than apartments.
Maintenance is another factor. Homeowners are responsible for all upkeep costs, from minor repairs to major expenses like a new furnace or roof. Yard work and snow removal also fall on homeowners, unless they live in an HOA community that covers these services. Apartment renters have most maintenance covered by their landlord.
5-Year Rent vs Buy Outlook
Assuming a 2BR apartment rent of $1,600 and a mortgage payment of $1,950 on a $325,000 home (with 10% down), here’s how the costs compare over 5 years:
Renting: $1,600 x 12 months x 5 years = $96,000
Buying: ($1,950 mortgage + $352 tax + $150 HOA + $250 utilities + $80 insurance) x 12 months x 5 years = $166,920
On the surface, buying costs $70,920 more. However, this ignores potential home value appreciation. If the $325,000 home appreciates just 3% per year, it would be worth around $376,000 after 5 years, giving the buyer $51,000 in equity. Assuming a 6% realtor fee to sell, the actual cost of ownership over 5 years is closer to $119,000.
This is just a simplified example – individual circumstances, down payment amount, interest rates, and maintenance costs can all shift the math. Use our Saint Paul cost of living calculator to run the numbers for your situation.
FAQs About Housing Costs in Saint Paul
- How much are HOA fees in Saint Paul?
- What is the property tax rate in Saint Paul?
- Is renting cheaper than buying long-term in Saint Paul?
- Do houses have higher utility costs than apartments?
HOA fees in Saint Paul range from $100-$400+ per month, but many neighborhoods don’t have HOAs at all. Fees are highest in condo buildings with extensive amenities.
The effective property tax rate in Saint Paul is around 1.3% as of 2025. On a $325,000 home, that equates to $4,225 per year or $352 per month.
Renting is often cheaper than buying on a monthly basis, but homeownership can be less expensive long-term due to building equity. A lot depends on home price appreciation and length of ownership.
Yes, houses in Saint Paul tend to have higher utility costs, especially for heating, given the larger space compared to apartments. Homes also have additional maintenance expenses.
Making Smart Housing Choices in Saint Paul
Deciding whether to rent or buy a home in Saint Paul involves weighing a variety of factors. Renting offers more flexibility and often lower monthly costs, but doesn’t build long-term equity. Buying requires a larger upfront investment and comes with added expenses like property taxes and maintenance, but can be financially advantageous over the long haul.
The key is to understand the full picture of costs involved. Factor in not just the monthly rent or mortgage payment, but also utilities, taxes, insurance, HOA fees, and upkeep. Consider your long-term plans too – if you expect to stay in Saint Paul for many years, buying may make more sense than if you plan to move in a year or two.
Regardless of whether you rent or buy, it’s wise to budget around 30% of your income for housing costs. Use our Saint Paul cost of living guide to estimate your total monthly expenses and see how housing fits into the equation. And if a move is in your future, be sure to check out our guide to the best moving companies to make the process easier.