Despite apartment building boom, it's still a landlord's market
Several years into an apartment construction boom, it’s still a landlord’s market across the Twin Cities metro.
Throughout the 13-county Twin Cities metro the average apartment vacancy rate during the second quarter was 2.7 percent — virtually unchanged from last year and the fifth year that vacancies have remained below 3 percent, according to the Twin Cities office of NAI Everest, a national commercial real estate firm.
At least as far as demand, the Twin Cities is outperforming much of the nation. Across the U.S., the vacancy rate was nearly twice as high and has increased for three consecutive quarters. Rents in the Twin Cities, however, have been rising at a much more moderate pace than many of those biggest metros. The NAI report said the average rent across the metro increased only 2.19 percent to $1,085, a figure that includes both income-restricted apartments as well as traditional market-rate buildings.