You might have noticed there’s a bit of a media buzz about the Twin Cities duplex and apartment vacancy rate.
In fact, Marquette Advisors, the local company that tracks such things, reports at the end of June, the vacancy rate was just 2.4 percent; the lowest it’s been in a decade.
Perhaps that incredibly low number is why people who want to buy a Minneapolis duplex are having such a hard time finding one.
And perhaps that’s why local developers have proposed building as many as 8,500 new market-rate apartments across the metro area.
Remember all of the condos that were built downtown? Well, they’re filling in for apartments at the moment. In fact, Joe Grunnet, of Downtown Resource group, which rents out apartment units, recently told Finance and Commerce they’re renting out about 33 units a month; at $1640 a pop!
Low vacancy rates always result in rent increases. Rent increases always result in higher duplex sales prices; because values are driven, in part, by the amount of rental income.
In other words, if you’re thinking of buying a Minneapolis duplex, waiting to do so might cost you more money.