Minneapolis Tops RentCafe’s 6-Month Rental Activity Report
Three midwestern cities made the top five.
Minneapolis saw greater rental activity than any other U.S. city in the first half of the year, according to RentCafe’s findings. Rounding out the top five were Overland Park, Kan., Atlanta, Cleveland and Queens, N.Y.
The findings are based on millions of interactions across the RentCafe website, Esther Bonardi, industry principal at Yardi Marketing Solutions, said on a webinar Wednesday.
Several factors drove positive apartment fundamentals in Minneapolis over the past six months, said Paul Fiorilla, director of research for Yardi Matrix. These included excellent quality of life and solid job growth. Minneapolis added thousands of jobs in 2023.
“Unemployment is very low, and though hybrid work remains, some companies are increasing requirements to work in offices, driving interest in apartments near the central business district,” said Fiorilla. “Minneapolis also has an extensive public transit system, many cultural attractions and easy access to parks, lakes and recreation, as well as proximity to the University of Minnesota.”
The city’s $1,536 monthly average rent is competitive with other Midwest markets, and about a third less than rents in the Midwest’s largest city, Chicago. “There hasn’t been a surge in supply, keeping rents steady,” Fiorilla said.
“When it comes to the appeal of urban Minneapolis, the proof is in the pudding. It has a solid economy, attractive amenities and comparative affordability.”
Runners-up
Second place was Overland Park, which Fiorilla noted offers a strong job market in health care, education and technology, as well as positive quality of life. Renters get more for their money there, which may be reason for the city’s robust population growth, both from in-migration of newcomers from other parts of the country and from abroad.
Atlanta, long an employment engine, has recently added tens of thousands of new jobs. A headquarters city for many major corporations, its joblessness rate is well below the national average. Midtown and Buckhead are among the enclaves that are growing rapidly.
Cleveland is very affordable, registering a $1,170 average rent that’s about one-third below national average. It’s one of a number of Ohio metros benefitting from federal cash infusions to buttress manufacturing and infrastructure. Through mid-year, the city registered a 94.2 percent average occupancy, and rents were up 3.4 percent.
“Rent growth is strong in both luxury and renting-by-necessity segments,” Fiorilla said. “Cleveland has steady rent growth potential.” The appeal of Queens was succinctly summed up by RentCafe Senior Creative Writer Nadia Balint and Fiorilla, who both characterized the borough as a haven for young adults and families who seek a New York City life, but at a more affordable price tag than they’d find in Manhattan.
