New apartments barely putting a dent in Twin Cities vacancy rates, and rents are on the rise
- Blog Post by: Jim Buchta
- May 1, 2013 - 12:55 PM
Hundreds of new apartments have been built in the Twin Cities, but that hasn't put a dent in the average vacancy rate in the region. Just-released first-quarter data shows that the average vacancy rate in the metro was 2.8 percent compared with 2.9 percent during the previous quarter, according to Marquette Advisors.
That was the 8th-consecutive quarter in which the vacancy rate has remained below 3.0 percent, and in 48 out of 54 Twin Cities submarkets, the vacancy rate was below 3.5 percent.
Deep demand allowed landlords to raise rents slightly. The average monthly rent for the quarter was $966, up from $957 during the fourth quarter and $935 a year ago
As the rental boom rolls on, absorption continues to outpace new construction, especially in Minneapolis where about 760 new units were brought to market in both downtown and the southwest neighborhoods over the past 15 months. Still, the vacancy rate in those submarkets posted 2.2 and 2.1 percent respectively. Stay tuned, I'm working on a complete story for the Thursday paper, complete with a full summary of how many new units will come online in the Twin Citeis.
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