Twin Cities Multifamily Report – January 2025
Occupancy and transactions are up, but other indicators are down.

The Minneapolis-St. Paul multifamily market remained balanced toward the end of 2024. Average advertised asking rents were down 0.2 percent on a trailing three-month basis through November, to $1,529, mirroring the dip in the national growth rate. Meanwhile, the occupancy rate in stabilized properties increased 20 basis points year-over-year, to 95.2 percent.
Employment in Minneapolis-St. Paul was up a modest 0.3 percent year-over-year as of September. The metro’s growth rate was 110 basis points below the national average. Education and health services led growth with 20,400 positions, marking a 5.4 percent improvement. The area’s unemployment rate stood at 2.7 percent as of October, 140 basis points below the U.S. figure, according to data from the Bureau of Labor Statistics. In Monticello, Minn., some 40 miles from Minneapolis, Frattalone Cos. submitted a proposal to build a 3 million-square-foot data center campus.
A total of 8,957 units, or 3.4 percent of existing stock, came online last year through November in Minneapolis-St. Paul. The figure was 70 basis points higher than the national rate of completions. Apartments were mostly evenly distributed between urban and suburban submarkets. With $956 million in assets changing hands through November, the transaction volume picked up and surpassed 2023’s $655 million total.