Many of the hottest housing markets in the Twin Cities in 2023 were places that catered to move-up buyers, those least likely to be affected by higher mortgage rates. From Arden Hills to Wayzata, the most sought-after cities were outer-ring suburbs, with the top spot going to Delano, a laid-back river town about 30 freeway miles — but only two stop lights — west of downtown Minneapolis.
To find out which cities defied the topsy-turvy impact of higher mortgage rates on buyers and sellers last year, the Star Tribune's annual Hot Housing Index focused mostly on whether there was a sudden increase or decrease in sales from 2022 to 2023. It also took into account whether there was an unusual scarcity or abundance of previously owned houses for sale and, to a lesser extent, the change in the average sale price per square foot. The index only includes housing markets with 70 or more home sales.
Use the search tool below to see rankings for the roughly 100 cities included in the Hot Housing Index, plus historical real estate sales data and homeownership metrics from U.S. Census Bureau surveys. Some of that data is also available for Minneapolis and St. Paul neighborhoods and other cities in the 13-county metro area that didn't have enough sales last year to be included in the index.