Duluth, Minnesota Housing Market

How much can you negotiate in Duluth?

For every 100 homes for sale, 118 are already under contract. Buyers outnumber sellers here. Expect company when you bid. About 1 in 6 sellers has already dropped their price. Each one has learned their first price was too high. Start below their new price, not their old one.

A typical Duluth home takes 33 days to find a buyer. Half of them take even longer. Those sellers are paying to own a house they want to sell. Search for homes listed 60+ days ago. There are 181 homes for sale in Duluth. That is 5.2 times the tightest month on record, but below the peak of 458. Supply is growing against last year.

What to do about it

• Judge the listing, not the market. Start in 55802, 55803, and 55812, where sellers are weakest.
• Homes listed 60+ days ago with a price cut are where your discount is.
• Fresh, well-priced homes will not move on price. Do not waste offers on them.

Is now a good time to buy in Duluth?

Asking prices are 9.5% below their Mar 2024 peak. You are not buying at the top. Prices are rising again. Every month you wait costs money. The question is no longer when. It is which house. Duluth prices have risen in 92 of the last 108 months. Drops here have been short and shallow. Buying in a slow month has rarely hurt a long hold.

This market is turning. Which way is not settled yet. Check the monthly numbers above before you commit.

Who will rent from you in Duluth?

In Duluth, 34 out of every 100 households rent. Most own their home. The renter share is growing. Five years ago it was 33 in 100. 7.3% of homes sit empty. That is normal for a healthy market.

The median Duluth household earns $76,750 a year. Incomes here have grown 5.1% a year since 2019. Home prices have outrun incomes. Locals are being priced out. A typical home costs 6.4 times the median income. Most locals cannot buy. That keeps rental demand deep. It also caps the rent they can pay. A tenant on the median income can pay about $1,919 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast.

What numbers should you underwrite a Duluth deal with?

• Price growth to assume — +6.6%/yr. 1 year: +9.5% · 5 years: +7.7% · ten years: +6.6%. The five-year and ten-year rates agree. That is a durable trend, not a boom artifact. It is a fair long-run input. Measure growth per square foot, not on the median. The median moves when the mix of listed homes moves. Your house does not. The one-year rate is a timing signal. It is not an underwriting input.
• Months of carrying cost — 2. A typical home takes 33 days to sell. Budget that long when you exit or refinance.
• Odds you cut your price to sell — 1 in 6. About 18% of homes on the Duluth market right now have already cut their asking price. Assume you are one of them when you sell. Do not underwrite an exit at your asking price.
• Comp on this, not median price — $238/sqft. The average listing runs +25% above the median. Luxury homes skew it. Comp your own size class per sqft.
• Competition when you exit — +24%. That is how much the number of homes for sale grew in a year. Your resale will face a bigger crowd than today's comps did.
• Price-to-income ratio — 6.4×. A typical home costs 6.4 times the median income. Most locals cannot buy. That keeps rental demand deep. It also caps the rent they can pay. Home prices have outrun incomes. Locals are being priced out.
• Tenant rent ceiling — $1,919/mo. 30% of the median household income of $76,750. Rents above this line shrink your tenant pool fast.

Is Duluth a buyer's or seller's market in 2026?

Only on the right house. Neither side has the upper hand in Duluth right now. 1.18 out of every 100 homes for sale have a buyer, 18% of sellers have cut their price, and a typical home takes 33 days to sell.

Are Duluth home prices going up or down?

Asking prices are 9.5% below their Mar 2024 peak. You are not buying at the top. Prices are rising again. Every month you wait costs money. The question is no longer when. It is which house.

What price growth should I assume for Duluth?

+6.6%/yr. 1 year: +9.5% · 5 years: +7.7% · ten years: +6.6%. The five-year and ten-year rates agree. That is a durable trend, not a boom artifact. It is a fair long-run input. Measure growth per square foot, not on the median. The median moves when the mix of listed homes moves. Your house does not. The one-year rate is a timing signal. It is not an underwriting input.

How fast are homes selling in Duluth?

A typical Duluth home takes 33 days to find a buyer. Half of them take even longer. Those sellers are paying to own a house they want to sell. Search for homes listed 60+ days ago.

Is Duluth a renters' market or an owners' market?

In Duluth, 34 out of every 100 households rent. Most own their home. The renter share is growing. Five years ago it was 33 in 100. 7.3% of homes sit empty. That is normal for a healthy market.

What rent can Duluth tenants afford?

A tenant on the median income can pay about $1,919 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast. The median Duluth household earns $76,750 a year.

Which Duluth ZIP code has the most negotiating room?

55802. Only 37 out of 100 homes there have a buyer, 17% have cut their price, and a typical home takes 57 days to sell.