Minneapolis Duplexes Dominate The Market
Given that Minneapolis has more duplexes, triplexes and fourplexes than any other city in the state, it has an outsized impact on sales data.
No place is this more evident than the months of inventory statistic for February. Months of inventory in real estate is a metric used to assess the supply and demand dynamics in a housing market. It’s calculated by taking the total number of active listings in a given month and dividing it by the number of sales, which results in how long it would take to sell the current inventory of duplexes on the market at the current sales pace.
Minneapolis saw a 5 month supply of inventory in February. The rest of the 7-county region had a 3-month supply. In fact, Minneapolis experienced a 4 or 5-month supply 8 of the last 14 months, while the suburbs and 7-counties topped 3 months just 3 times.
While Minneapolis and the entire region are more favorable to sellers than buyers, this nonetheless may represent a shift for the city. A balanced market, where buyers and sellers have equal footing occurs when there is a 5-6 month supply. In that environment, both buyers and sellers have equal negotiating power.
This increase may simply be a result of there being fewer duplexes, triplexes and fourplexes to sell in the rest of the city.
The city saw 54 new duplex, triplex and fourplex listings in February. This represented a 22.7% increase over the same month one year ago. Overall active listings were up 8.3% over February 2024. The Webber Camden, Hawthorne, Lowry Hill Est and Whittier neighborhoods were the biggest contributors with 4 new listings each.
A refreshed 4 bedroom, 2 bathroom house conversion in the Hawthorne neighborhood presented a wonderful opportunity for someone not looking for a major rehab at $229,900. An 8 bedroom, 5 bathroom turnkey duplex in the East Isles neighborhood presents a chance for someone looking for a home-like experience near the lakes and have a tenant help pay for it at $1,495,000.
February saw 25 small Minneapolis multifamily properties get new owners. This was a decrease of 8% from February 2024. The average sales price of $418,543; slightly ahead of last February’s $415,872.
The high seller for the month was a 13 bedroom, 4 bathroom Powderhorn Park fourplex that closed at $675,000. At $65,000, a fire-ravaged 2 bedroom, 2 bathroom duplex in the Folwell neighborhood presented an opportunity either to scrape and rebuild or take on a heroic value-add rehab.
Webber Camden and South Uptown neighborhoods lead the way with three sales each, followed by Standish, Whittier and St. Anthony East, each of which added 2.
As always, if you’re thinking of selling a duplex, triplex or fourplex you own in Minneapolis or any of the surrounding area, give me a call. I’m happy to help.