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| Image Source: minnpost.com |
According to the latest Apartment Trends report by Marquette Advisors, construction of multifamily rental housing units continues across the Twin Cities while apartment vacancy rates remain steady. Currently, the apartment vacancy rate across the metro was at 2.4 percent at the end of the third quarter, which is a slight decrease from the 2.5 vacancy rate that was reported for the same period last year.
Near the end of 2013, construction of new apartments and condos started after a period of inactivity. Positivity and demand were high once again and residents started to move to new buildings that have fancy amenities such as pools, rooftop gardens, bocce courts, and dog walks among others. There were 2,763 new apartments that opened that year alone.
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By the end of 2014, about 5,000 new apartments are expected to be ready for occupancy in the metro. In 2015, an additional 3,600 new unit are expected to rise. Downtown Minneapolis currently sees most of the new apartment projects, with 40 percent of new construction and 33 percent of absorption in the region since December 2012.
The rental vacancy rates were at 2.1 percent in Minneapolis and 3.1 percent in downtown Minneapolis. The latest figures show a significant drop from the vacancy rate of 5.7 percent that was recorded in the second quarter of this year.
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| Image Source: minneapolis.duplexchick.com |
Banker and real estate investor, Steve Liefschultz is the chairman of the board of The Remada Company in Minnesota. For more news and updates on Minnesota real estate, visit this Facebook page.
