Multifamily Listing Inventory Sees March Thaw

March may not have seemed as much like spring as the rest of our mild winter did, but it nonetheless marked the thawing of the Twin Cities spring duplex, triplex, and fourplex market.

The month saw 115 new small multifamily listings come on the market. This represents a jump of 17.3% in total new listings over February’s totals and an increase of 5.5% over March of 2023.   The Whittier neighborhood of Minneapolis added the greatest number of investment opportunities during the month, tallying 9 new properties on the market in that area alone.

In all, there were 177 active listings during March. This total is 31% higher than the same time last year. However, it still trails March of 2022’s 181 active listings. Of course, fewer active listings for buyers to choose from usually result in higher prices. This is evidenced in that the average duplex, triplex, or fourplex listing in the 7 county metro area sold for 100% of its original list price.

The biggest value-add opportunity in March was a fire-ravaged fourplex in the Folwell neighborhood of Minneapolis, which sold for $95,000. A fourplex in Minneapolis’ Central neighborhood with three 3 bedrooms and a single-bedroom unit was the high seller for the month, closing at $765,000. While these properties were both in Minneapolis, the most sales activity was found in the Payne-Phalen neighborhood of St Paul, where 5 small multi-family properties found new owners.

The 72 sales that closed in March did so at an average price of $386,993. While this is down slightly from February, it is a pattern often seen in the market. If that continues, April’s prices should see a healthy rebound.

If you’re thinking of buying a selling a Twin Cities duplex, triplex or fourplex, give me a call. While inventory is low, there are still plenty of opportunities; both on and off the market.