Twin Cities Multifamily Report – September 2024
Occupancy rates are up, a rare feat in 2024.
The Minneapolis-St. Paul multifamily market showed signs of stability in the face of an overall national slowdown. Advertised asking rents were up 0.1 percent on a T3 basis, to $1,512, 20 basis points lower than the U.S. average growth rate. Meanwhile, the occupancy rate in stabilized properties increased by 20 basis points year-over-year, to 95.2 percent.
Employment in Minneapolis-St. Paul was up 0.9 percent in the 12 months ending in May. The metro’s growth rate was 40 basis points below the national average. Education and health services led gains, accounting for 20,000 new positions. The area’s unemployment rate stood at 3.7 percent as of June, 40 basis points below the U.S. figure, according to the Bureau of Labor Statistics. In terms of new development, Heliene partnered with Premier Energies to build a solar cell facility in the greater Minneapolis-St. Paul area. The $145 million project is expected to generate 200 jobs and will begin production in the second quarter of 2026.
A total of 4,231 units, or 1.7 percent of existing stock, came online this year through July, 30 basis points higher than the national rate of completions. Five of the 22 delivered projects were Lifestyle communities located evenly across urban and suburban submarkets. With $624 million in assets changing hands through July, transaction volume is picking up, as the total investment volume last year amounted to $655 million.