Market Report
Minneapolis-St. Paul Multifamily Market Report
1Q 2026
Investor Activity Increases While Demand
Normalizes After Five-Year Growth Phase
Vacancy eases despite slower net absorption. From 2020 through early 2025, deliveries and demand remained elevated, but conditions began to cool late last year. This moderation is projected to extend into 2026, with net absorption returning to its long-run average amid slower population gains and a softer labor market. As a result, rent growth should ease modestly, leaving the Twin Cities firmly positioned among the Midwest’s highest-rent markets. Metrowide, a slight reduction in completions should help leasing efforts, particularly in Downtown Minneapolis and Uptown-St. Louis Park, where no supply of note opened in 2025, nor will it in 2026. In St. Paul, deliveries will rise following the city council’s 2025 amendment exempting post-2004 properties from the 3 percent rent cap. East St. Paul will capture much of this activity, which could ease rent growth after entering 2026 with one of the metro’s strongest annual improvements.
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