What are the hidden costs of owning a historic home in Minnesota?
Answered by Chris Deutsch, Founder & Editor
Licensed Minnesota Realtor #20382264 ·
The short answer
A $400,000 historic home in Minneapolis actually costs about $6,000-8,000 more per year to own than a $400,000 new construction home. That's $500-667 more per month.
On stage The 60-second answer
Captions on · Transcript below
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The longer answer
Where does it go?
Heating: Old homes with original windows and minimal insulation cost 30-50% more to heat. A new furnace helps, but the real savings come from insulation and windows — and those have to be done carefully to preserve character.
Insurance: Many insurers charge more for knob-and-tube wiring (if still present), older roofs, and plumbing. Some won't insure at all until updates are made.
Repairs: Everything costs more because you can't just go to Home Depot. Matching trim, repairing plaster, restoring windows — these require specialists.
Property taxes: Historic neighborhoods tend to have higher tax assessments because the land values are higher.
But here's the counter-argument: That same $400K historic home in Kingfield will likely appreciate $15,000-20,000 more over 10 years than a $400K new build in an outer suburb. The higher costs are partially — sometimes fully — offset by stronger appreciation.
Know the full math before you fall in love.
The next department over
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From the editor's desk
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