Twin Cities Multifamily Market Report – January 2025

Rents Down, Occupancy Improves

The Minneapolis-St. Paul multifamily market remained balanced toward the end of 2024, as per the latest Twin Cities multifamily market report. Average advertised asking rents were down 0.2%, on a trailing three-month basis through November, to $1,529, mirroring the dip in the national growth rate, according to the U.S. multifamily market report. Meanwhile, the occupancy rate in stabilized properties increased 20 basis points year-over-year, to 95.2%.

Employment in Minneapolis-St. Paul was up a modest 0.3% year-over-year as of September. The metro’s growth rate was 110 basis points below the national average. Education and health services led growth with 20,400 positions, marking a 5.4% improvement. The area’s unemployment rate stood at 2.7% as of October, 140 basis points below the U.S. figure, according to data from the Bureau of Labor Statistics. In Monticello, Minn., some 40 miles from Minneapolis, Frattalone Cos. submitted a proposal to build a 3 million-square-foot data center campus.

A total of 8,957 units, or 3.4% of existing stock, came online last year through November in Minneapolis-St. Paul. The figure was 70 basis points higher than the national rate of completions. Apartments were mostly evenly distributed between urban and suburban submarkets. With $956 million in assets changing hands through November, the transaction volume picked up and surpassed 2023’s $655 million total.

Read the full Yardi Matrix Twin Cities Multifamily Market Report: January 2025