Twin Cities Rents Continue to Rise

PRLog (Press Release) - Jan. 28, 2013 - The fourth quarter of 2012 showed continued strong rent growth in the Twin Cities apartment and shadow (condo, duplex, single family home, townhome) markets. One bedroom apartments were up 10% from the previous year, with a median rent of $790. Two bedrooms rose 8% to $960, and three bedrooms climbed 5% to $1,250. In the shadow market, one bedroom units rose 3% to $835, two bedrooms grew 5% to $1,100, and three bedrooms nudged 1% higher to $1,300.

The shadow market makes up a significant portion of units available to renters in the Twin Cities Metro Area. In the 4th quarter of 2012, the shadow market comprised 55% of advertised openings. This is down from the previous year (2011 Q4) when the shadow rental market made up 65% of advertised openings.

Apartment vacancy is low and rents continue to rise. The shadow market offers an alternative to renters, but single family home, duplex, condo, and townhomes are usually more expensive to rent than apartments. However, in a number of Twin Cities suburbs the shadow market prevents apartment rents from going higher, particularly among three bedroom units.  

For more information on the Twin Cities rental market visit www.housinglink.org/blog.