What $400,000 to $500,000 Buys You in the Twin Cities in 2026

If you’re shopping for a home in the $400,000 to $500,000 range in the Minneapolis–Saint Paul metro area, you’ve probably noticed one thing: what you get for your money depends heavily on location.

To show you how different this can be, let’s compare two nearby — but very different — cities: Lakeville, MN and Bloomington, MN. Both are excellent places to live, and each offers unique advantages for homebuyers.

Lakeville vs. Bloomington: A Price Comparison

Right now, the average price per square foot of recently sold homes is:

Lakeville: Around $192 per square foot
Bloomington: Around $203 per square foot

At first glance, those numbers look very similar.

However, when you look at average sale prices, there is a big difference:

Lakeville: About $520,000
Bloomington: About $400,000

So why is there such a gap?

The biggest reason is housing style and age.

Lakeville has a large amount of newer construction, larger homes, and newer subdivisions. These homes tend to have more square footage, modern layouts, and higher overall prices.

Bloomington, on the other hand, has many older and smaller homes. This often makes it a more affordable entry point for first-time buyers, even though the price per square foot is similar.

What Your Money Really Buys

When buying a home, price per square foot is only part of the story. What matters just as much is what comes with it.

In this price range, buyers should also consider:

School districts
Neighborhood amenities
Commute times
Proximity to Minneapolis, the airport, and major employers
Parks, trails, and shopping
Overall lifestyle

For example, many buyers choose Lakeville because they can get a newer home with more space, even if it means a longer commute.

Others prefer Bloomington because of its central location, shorter drive times, and established neighborhoods — even if the home is smaller or needs some updates.

Which Option Is Right for You?

Neither option is “better” or “worse.”

It simply depends on:

How you want to live
Where you work
How much space you need
Your long-term plans

The right home is the one that fits your lifestyle and financial goals.

Get Personalized Home Options

If you’d like to see what $400,000 to $500,000 can buy you in Lakeville, Bloomington, or anywhere in the Twin Cities, I’d be happy to help.

Text HOMES to 952-994-7204
for current listings and personalized recommendations.