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Attention Multifamily Investors,
Apparently, the old axiom, “What goes up, must come down” remains challenged, when it comes to the Twin Cities multifamily market demand. Aside from our Central Business Districts (CBD), apartment rental demand remains very strong.
Sure, interest rates hikes put a damper on skyrocketing values and rents, but those trends were not sustainable. It’s the demand piece of the market dynamics that’s really interesting for local and regional multifamily assets. You probably saw the recent headlines about Minneapolis leading all the major Midwest markets for multifamily demand.
- Minneapolis had 4 consecutive record-setting years of development with more than 46,000 units since the first quarter of 2020. That’s more than the 18 years leading up to the pandemic.
- 85% of all absorption includes new construction in the past 18 months.
- Suburban units have been the preference for renters seeking affordable, spacious units in walkable, safe neighborhoods.
- Urban core continues to struggle with shifts in workforce patterns and persisting safety issues.
- Downtown rents have not reached pre-pandemic levels with over half the units available offering tenant concessions. Minneapolis is the only CBD besides San Francisco still below 2020 levels.
Part II Continues Below...
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