How Twin Cities Duplexes Can Solve Buyer Housing Affordabiltiy

The average age of a first-time home buyer in the United States jumped to 38 years old in 2024. This was up from 35 in 2025, and late 20-somethings that bought homes in the 1980s.

The most often cited reason for this is affordability. Prices are high largely due to a lack of supply.

In December, the median home price for a 2-bedroom single-family home in the 7-county metro area was $289,900.

With a 5 percent down payment and a 30-year mortgage at 7 percent, monthly payments on that home would be $1832.38. And that’s before property taxes, insurance, trash, water, sewer, and maintenance, which would likely add another $500-600 a month.  That means it costs a buyer somewhere between $2300-2500 per month to own a 2-bedroom home.

According to the website Zumper, which tracks rental rates, the median rent for a 2-bedroom house in the Twin Cities is $1741.

What about a 3 bedroom house? The median price in December was $360,000. Assuming a 5 percent down payment ($18,000), 30-year amortization and 7 percent interest, monthly payments would be $2775.53 per month. Add in taxes, insurance, trash, water and sewer and that may climb approximately another $650-700 per month to a total of $3425 . Zumper cites median rent for a 3 bedroom house in the Twin Cities at $2100 per month.

Perhaps this is why primary buyers of Twin Cities duplexes, triplexes and fourplexes in recent years have been owner occupants.

Let’s take a look at the math.

The median priced duplex in the 7 county metro area in December was $395,000. Using the same 5 percent down, 7 percent interest and 30 year amortization, monthly payments are $2496.55. Taxes, insurance, trash, water and sewer likely increase that about another $800, bringing the monthly payment and expense to $3296.55.

However, if the property has a 2 bedroom unit leased at $1741, the owner occupants cost of ownership drops to $1535.55. And if the rental unit is a rare 3 bedroom, that drops by $2100 to $1196.55.

Granted, both scenarios require the properties to be in areas and with a unit mix to match the numbers. However, even if they aren’t perfect, the owner occupant is far more likely to pay a higher purchase price than a cash flow investor simply due to the monthly living expenses they’ll save.

With little inventory and higher costs, it’s the perfect time for both the would-be owner occupant and a duplex seller looking to net a bit more.