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Twin Cities' Multifamily Market Softening

MINNEAPOLIS-Now at 1.8%, vacancy rates are expected to soar past 8% for some properties, especially high-end multifamily rental buildings, while rents fall from their current level of $816 per month on average.

By Jim McCartney | Updated on January 14, 2002

MINNEAPOLIS-After several years as the strongest sector in Twin Cities commercial real estate, things are getting a little softer for the multifamily housing segment as vacancies start to rise and rents soften. That’s despite a strong third quarter — a 1.8%vacancy rate, according to data from Apartment Search.

And year-end apartment rents averaged $816 per month, up 5% from mid-year and 14% from a year ago, according to United Properties.

Construction is continuing with more than 10,000 new apartments and 3,500 senior rental units in lease-up, under construction, planned or proposed at year-end. In the rapidly growing northwest suburbs, there are 1,500 units in the pipeline, according toUnited.

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