Excelsior, Minnesota, continues to experience dynamic shifts in its housing market, characterized by fluctuating home prices, evolving rental trends, and notable new developments that are reshaping the community’s residential landscape.
Current Housing Market Trends
As of May 2026, the median sale price for homes in Excelsior stands at approximately $725,000, reflecting a 34.1% decrease compared to the same period last year. Homes are selling faster, with an average of 28 days on the market, down from 38 days the previous year. The number of homes sold has also increased, with 11 transactions in May 2026, up from 9 in May 2025. These indicators suggest a competitive market with increased buyer activity.
Rental Market Insights
The rental market in Excelsior presents a diverse array of options, from charming apartments to townhomes that capture the area’s lakeside charm. As of June 2026, the average rent for a one-bedroom apartment is $1,292 per month, while two-bedroom units average $1,843. Notably, the median rent has risen by 13.7% year-over-year, indicating strong demand and potential for solid rental yields.
New Developments: One West Drive
Addressing the need for modern housing options, the One West Drive development is a significant addition to Excelsior’s residential offerings. This project introduces 38 market-rate rental apartments and 11 rowhouses, marking the first new residential community in downtown Excelsior in over 50 years. The development includes amenities such as a spa pool, fitness and yoga studios, and extensive underground parking, enhancing the living experience for residents.
Short-Term Rental Market
Excelsior’s short-term rental market comprises 78 active listings as of May 2026, with an average occupancy rate of 56% and a RevPAR (Revenue per Available Room) of $218. However, the market has seen a 6.2% decrease in occupancy and a 37.2% decline in RevPAR year-over-year, indicating a shift in demand dynamics.
In summary, Excelsior’s housing market is characterized by competitive sales, a robust rental sector, and strategic developments like One West Drive that cater to the evolving needs of the community. These trends reflect a dynamic real estate environment poised for continued growth and transformation.