Rent Growth Solid, Occupancy Up
Minneapolis–St. Paul maintained its performance at the beginning of the third quarter, building on the previous months’ solid footing, as per the latest Twin Cities multifamily market report. Average advertised asking rents were up 0.3%, on a trailing three-month basis through July, to $1,590, 10 basis points ahead of the national figure, according to the U.S. multifamily market report. Year-over-year, rents were up 2.2%, placing the metro in the top 10 among the markets tracked by Yardi Matrix. The average occupancy for stabilized assets remained high, even after four years of record supply growth, at 95.5% in June.
Employment growth was 0.7% year-over-year through May, 10 basis points behind the national average. The metro added 15,700 net jobs over the 12-month period ending in May, with education and health services leading gains (14,200 jobs). The area’s jobless rate stood at 3.7% as of June, 40 basis points below the U.S. figure, according to preliminary data from the Bureau of Labor Statistics. The Twin Cities industrial market continues to attract investors. Hempel Real Estate and TPG Angelo Gordon formed a $300 million joint venture that will target development and acquisition, including the construction of Brockton Business Park.
Developers completed 3,437 units this year through July, accounting for 1.3% of existing stock, reflecting an expected slowdown after record-breaking numbers in the past four years. Multifamily investment also slowed, with $588 million changing hands in the first seven months, in line with nationwide economic uncertainty.
Read the full Yardi Matrix Twin Cities Multifamily Market Report: September 2025
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