Twin Cities average rent breaks $1,000 barrier for first time [GRAPHICS]
Want to rent a one-bedroom in Minneapolis? You'll probably have to pay more than $1,000 these days.
Image by Tatiana Craine
A new report issued by Marquette Advisors doesn't paint a pretty picture for Twin Cities-area renters who aren't in the market for $4,500 Lake Calhoun apartments.
Though the metro-wide vacancy rate ticked up from 2.5 percent during 2013's fourth quarter to 2.7 percent during the first quarter of this year, the average rent across all unit types now tops $1,000 for the first time on record, Marquette Advisors Vice President Brent Wittenberg tells us.
Here's a Marquette map putting it in (recent) historical context:
All graphics via Marquette Advisors
There's a relative bounty of units available in downtown Minneapolis, where the vacancy rate is five percent, but that's mainly because that submarket "has been the most active in the region in terms of new construction and leasing activity."
"Excess vacancy does exist for a small number of [downtown Minneapolis] properties, and incentives have been used in re-leasing of units," the report says. "However, demand has improved during the past 45 days and incentives are moderating."
That said, it makes sense that the average downtown Minneapolis rent is up over seven percent from last year.
Rents are increasing despite a less-than-booming job market, the repot indicates, citing Minnesota Department of Employment and Economic Development stats showing only 900 new jobs were created in the Twin Cities during the first quarter of the year.
Here's a graphic breaking down the rental market for Minneapolis and St. Paul over the past five years:
And here's the current county-by-county picture...
... along with a breakdown for each geographical submarket:
In April, we spoke with Mike Vraa, managing attorney at the tenant advocacy organization HOME Line, and asked him about why he thinks rents continue to go up.
"As I see it landlords right now are trying to figure out what the ceiling is for their market," Vraa said, before expressing optimism that construction of new luxury units might eventually help bring prices down for cash-conscious renters.
"I'll be honest -- I'm not against giant expensive apartment buildings going up, because somebody staying in the nicest apartment right now might move [to a new, even nicer building], so their old unit becomes available," Vraa said. "So some of the expensive stuff ultimately becomes more affordable, but that's a long-term possibility."
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