Read the latest Yardi Matrix Twin Cities Multifamily Market Report.
Market Not Immune To National Trends
Market fundamentals were modest in the Minneapolis-St. Paul market, with rents up 0.2% on a trailing three-month basis through July, to $1,483. The figure remained below the national average of $1,729, which advanced 0.3%. Year-over-year, rent growth in Twin Cities hit 1.7%, just above the U.S. figure, which clocked in at 1.6%.
Twin Cities employment growth (1.8%) trailed the national average (2.8%) as of May. Despite only two sectors recording losses, the rate was 100 basis points below the U.S. figure. Sectors recording significant gains included leisure and hospitality (17,700 jobs, up 9.6%), education and health services (12.900 jobs, up 3.5%) and government (7,200 jobs, up 2.8%). Meanwhile, the metro’s 3.3% unemployment rate as of June was below the already low national figure, which sat at 3.6%.
Transactions slumped after two years of record volumes. In the first seven months of 2023, investors mainly targeted Renter-by-Necessity properties, with the total year-to-date through July at just $186.9 million. Developers brought 1,494 units online, with an additional 16,679 units underway as of July. Yardi Matrix expects 6,841 units to come online during 2023, marking a clear change of pace from the previous two years, when nearly 23,000 units came online in 24 months.
Read the full Matrix Multifamily Twin Cities Report-September 2023
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