Minneapolis and St Paul duplex vacancy rates are often harder to find than my car keys.
However, the commercial real estate brokerage Marchus & Millichap recently reported that according to their research, overall duplex and multi-family vacancy rates will fall below 3 percent this year in the Minneapolis/St Paul market.
This represents the lowest Twin Cities vacancy rates in a decade.
Marcus & Millichap thinks it’s a result of their belief that nearly all major employment sectors will add jobs this year.
Of course, as basic economics dictate, when demand exceeds supply, prices go up. This is true of rents also.
Asking rents are projected to increase 2.7 percent this year, and duplex and apartment owners will have to use fewer incentives to encourage tenants to lease.
This is great news if you already own a Minneapolis duplex or are thinking of jumping into the market. Not only will it cash flow when you buy it, but by year’s end, you could have an even greater positive cash flow!