Minneapolis Q4 Multifamily Market Report: Despite strong job growth, some softening to close 2022 market


  • The Minneapolis-St. Paul multifamily market leveled off during at the end of 2022, as the vacancy rate pushed moderately higher, and asking rents held steady. Surburban submarkets continued to outperform urban areas for vacancy and rent growth.
  • The local vacancy rate continued to trend higher during the fourth quarter, rising 40 basis points in the final months of 2022 to 4.8 percent. While the rate edged higher at the end of the year, vacancy rose only 70 basis points for all of 2022.
  • Asking rents finished 2022 at $1,480 per month, down just $1 per month from the figure in the previous period. Year over year, rents are up 3.5 percent.
  • The local multifamily investment market slowed late in the year, as deal volume ticked lower, and cap rates trended higher. The median sales price in 2022 was $167,000 per unit, up nearly 12 percent from the median price in 2021. Cap rates averaged around 5 percent to 5.5 percent during the fourth quarter.

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