Minneapolis 1Q23 Multifamily Market Insights Report: Rents rise, but greater uncertainty in the near term


  • Renter demand in the Twin Cities was positive in the first quarter but could not keep pace with the delivery of new units. Vacancy rose, but rents trended higher at a steady pace.
  • The local vacancy rate continued to push higher during the first quarter, rising 50 basis points in the last three months to 5.3%. Year over year, the rate increased by 110 basis points.
  • Apartment rents inched up during the first quarter, rising 0.8% to $1,492 per month. Year over year, asking rents are up 3.7%.
  • The multifamily investment market recorded a slowdown in deal volume during the first quarter, particularly among Class A and Class B properties. Cap rates are generally averaging between 5.75% and 5.85%.

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