Twin Cities Multifamily Report – May 2025
Asking rent movement is back in black.
The Minneapolis–St. Paul multifamily market showed signs of improvement in the first quarter of 2025. The average advertised asking rate was up 0.4 percent on a trailing three-month basis, to $1,568. This was also 30 basis points above the U.S. figure, which registered a modest 0.1 percent uptick during the same time frame. Despite a 10-basis-point decrease year-over-year, the metro’s average overall occupancy in stabilized properties stood at 95.0 percent as of March.
Employment in Minneapolis–St. Paul was up 0.9 percent year-over-year through January, 10 basis points lower than the national average. Despite job losses in four sectors, education and health services remained one of the metro’s key employment drivers, adding 16,900 net jobs to the workforce. The metro’s unemployment rate stood at 3.5 percent as of February, 60 basis points below the U.S. rate, according to preliminary data from the Bureau of Labor Statistics. Another portion of the former Thomson Reuters 263-acre campus in Eagan, Minn., has been acquired. In February, Amazon paid $53 million for 95 acres.
Development is slowing down, as only 1,159 units came online this year through March, accounting for 0.3 percent of stock and 20 basis points below the national rate. Construction is also slowing, with only half the number of units breaking ground compared to the same period last year. Meanwhile, transaction activity remains solid, recording $370 million in assets changing hands.
