Home Addition Cost in Minneapolis [2025 Data]

A home addition in Minneapolis, Minnesota, costs an average of $51,946, and most residents pay somewhere between $27,888 and $78,010. The size of your home addition and whether you build up or out will affect your costs the most. This is slightly higher than the national average, due in part to the above-average cost of living in the city, driving up labor costs for the project.

Home Addition Cost Factors 

The square footage you’re looking to add to your home is the primary cost factor to consider, as each square foot can add up to $500 to your total in Minneapolis, Minnesota. Your decision to build up or out and the type and quality of the materials you pick will also play important roles.

Size

Home additions cost between $80 and $200 per square foot if you’re building out and between $300 and $500 per square foot if you’re building up. The cost to add a 10x10 room to your home in Minneapolis costs an average of $12,500 if you build out and $40,000 if you build up.

Where in those ranges your total falls also depends on the complexity of the room and its finishes. For example, adding a bathroom will often cost more than a bedroom since it requires additional plumbing and electrical work.

The average property size in Minneapolis is about 0.21 acres, or just over 9,100 square feet, and the average home size is roughly 1,550 square feet. That means most homeowners will have plenty of room to build out if they’re willing to give up a portion of their yard.

This can save tens of thousands of dollars on your project. Just keep in mind that there are setback laws in Minneapolis that prevent you from building too close to your property lines, so ask a home addition pro for help planning your build first.

Materials

As you can imagine, it takes many kinds of building materials to complete a custom home addition. Material prices vary widely, so your price could push closer to $78,010 if you choose high-end materials at each step of the way, and they could climb to $130,000 if you go for the most expensive luxury materials.

Since so many materials are involved in building a home addition, your best bet is to work with a local home addition contractor to get a sense of the role they’ll play in your total. However, you can also use the tables below to understand how much certain popular exterior materials cost and how they’ll perform in the local climate. Note that interior materials are solely up to personal taste and budget.

Foundation Materials Cost:

Insulation Materials Cost:

Roofing Materials Cost:

Siding Materials Cost:

Window Frame Materials Cost:

Type

The cost to add on a room varies based on the type of home addition you choose and the size of the room you’re building. Rooms like kitchens and bathrooms require plumbing work that a bedroom doesn’t, while an unfinished attic home addition may not require electrical or HVAC work that a bedroom needs. The cost per square foot for your home addition will vary based on utilities and the finishes required for how you plan on using the extra square footage.

Site Prep

On average, site prep for a home addition costs between $1,500 and $5,000. You may not need any site prep in some cases, while other home addition projects may require grading land, demolishing concrete patios, removing trees, and other work that can add to your total.

As mentioned above, Minneapolis's above-average property size means that most homeowners will be able to build out rather than up. Since building out costs a fraction of a second-story addition, even the high end of site prep is well worth the investment over building up if you don’t mind losing some yard space for your addition.

Permits

The City of Minneapolis requires building permits for all major construction, so you’ll need a permit no matter what type of home addition you’re building. Permit fees vary based on the total project cost.

The average cost of building a home addition in Minneapolis is $51,946, and for construction costs totaling between $50,000 and $100,000, the city charges $950.50 for the first $50,000 worth of work plus $10.60 for every additional $1,000 worth of work. That puts the average permit cost for a home addition in Minneapolis at $971.70.

Home Addition Pro Costs

Labor accounts for between 40% and 60% of your total when building a home addition, which means hiring a home addition contractor in Minneapolis will cost you between $20,700 and $31,200. This is higher than you’d pay in most other cities, in part because the local cost of living, which drives labor costs, is more than 16% higher than the national average.

You’ll also be subject to sales taxes totaling over 7%, which includes the 6.875% state sales tax for Minnesota, plus the 0.5% sales tax for Minneapolis. Given the average cost of a home addition in the city, taxes alone will add an average of over $3,800 to your total.

Does a Home Addition Increase Property Value?

Yes, building a home addition will almost always make your property more valuable in Minneapolis, as living space is one of the primary drivers of property value. You can expect a return on investment (ROI) of between 20% and 50% when you build a home addition, with the higher end of the range being more appropriate for build-outs and the lower end for build-ups.

Given the average cost of a home addition in Minneapolis, you’ll add an average of between $10,400 and $26,000 to your property value with a home addition. The average home in Minneapolis is worth $356,000, which means a home addition will boost actual home value by an average of between 3% and 8%.

How Angi Gets Its Cost Data

Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We survey real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects. 

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