Minneapolis-St. Paul Multifamily Market Report
Heightened Delivery Pace, Shifts in Renter Demand Have Uneven Impact on Submarkets
Elevated construction level continues for 10th year. Since the beginning of 2012, almost 40,000 apartments have been completed throughout the metro and deliveries are due to reach a new peak in 2021. Robust renter demand during the decade warranted the surge in inventory as marketwide vacancy hovered at or below 4 percent for all but two quarters until the pandemic hit. The coronavirus altered renters’ needs as some lost jobs and sought more affordable rent, while others searched for larger spaces to accommodate additional remote activities. Outdoor amenities also became more important for apartment seekers. As a result, more people moved out of the central cities for rentals in the suburbs.