Nearly 2,000 new apartments hit the market in the Twin Cities metro so far this year, but there were plenty of renters to fill those spaces. The average vacancy rate in the metro during the second quarter was 2.7 percent compared with 2.6 percent during the previous quarter and 2.3 percent last year, according to a second-quarter report from Marquette Advisors.
Most of those new units were upscale luxury apartments, boosting the overall average market rent to $1,004, a 2.6 percent year‐over‐year increase.
All eyes have been on downtown Minneapolis, where 601 new units - or 30 percent of all new construction - hit the market during the first half of the year, boosting the average vacancy rate to 5.7 percent from 5 percent during the previous quarter and 3 percent a year ago.
Looking forward, another 1,000-plus units are expected to come online during the last half of 2014, followed by more than 800 during 2015. We're working on a full report on this topic for the Thursday paper.
At almost $23,000 per square feet, this house in Hong Kong is reputed to be the world's most expensive house on a per square foot basis. The property is in the Twelve Peaks subdivision in the exclusive Victoria's Peak neighborhood. At nearly $106 million, it's not the most expensive house on the market in the world - that distinction belongs to a house in London.
The house has 4,661 square feet, including four bedrooms, a private pool, garden, rooftop terrace and a two-car carport. To see the house, click here.
Home builders picked up the pace this month. Twin Cities builders were issued 443 permits to build 903 units, according to the Builders Association of the Twin Cities. Half of those units (a single permit can be issued to build multiple units) were rental apartments and other kinds of multi-family housing.
Both permits and the number of units were up considerably from last year, but the number of planned units was down slightly from the previous month. The report comes after a quieter June report, but such volatility is common from month to month.
Here's a link to the full report with all the numbers.
It's going to be an interesting night at the Minneapolis City Planning Commission's Committee of the Whole meeting Thursday. Developers will be releasing a bevy of interesting new details on three high-profile housing developments planned for in and around downtown.
After six years in the making, Twin Cities-based Artspace received word that its first off-shore project is one step closer to reality.The nonprofit real estate developer, in partnership with Honolulu-based PA’I and Honolulu-based HKI, plans to build the Ola Ka ‘Ilima Artspace Lofts, a mixed-use arts development that includes 84 units of affordable housing live/work housing for artists and their families, space for other non-profits and gathering space for community events.
The Hawaii Housing Finance and Development Corporation (HHFDC) approved the Artspace request for low-income housing tax credits to help finance the $38 million project, which will be located in the Kaka’ako neighborhood of Honolulu.
"The HCDA has been following this project for over a year now, and we're excited that it's one step closer to providing much needed housing for lower income groups," said Hawaii Community Development Authority Executive Director, Anthony Ching.
The tax credit brings $17 million in upfront equity to the project’s capital budget, enabling Artspace to focus on the final phase of fundraising. Construction is expected to start in 2015.
As part of my reporting for a story in the Tuesday paper about a record-breaking $8 million Minneapolis condo that hit the market recently, I asked Zillow.com to scour the national listings in search of the biggest condos on the market. The Minneapolis unit, by the way, is the 12th largest in the nation, and it's interesting to note that the biggest units aren't the most expensive.