Consistency Wins Twin Cities Duplex Market

Nothing dramatic happened in the Twin Cities duplex market in August. It just kept putting one foot in front of the other. And that seems like a good thing.

The month saw 149 new duplex, triplex and fourplex listings hit the market. This was the fewest since March, and down 2 units from July. It was also up 21 from August 2024 and 15 from a decade ago. Minneapolis contributed 60 of these new listings, with St Paul chipping in 47.

Farmington contributed the month’s value-add opportunity with a side by side listing in need of nearly everything but walls and a roof for $147,900. A magazine worthy 10 bedroom, 3 bathroom triplex in St Paul’s Summit-University neighborhood offered a move-in opportunity at $1.3 million.

In all there were 336 active listings in August. This was exactly the same number as July. This is a 14.7% year-over-year increase, and a 43.6% rise from August of 2020. It is nowhere near the 426 active listings in August of 2015, however.

Consistency was again the name of the game in sales. Eighty-three small multifamily properties sold across the metro in August. July saw 82, June 84 and April saw 82; so it’s been a somewhat steady pace. These properties closed at an average sales price of $457,944 and a median of $425,000. Minneapolis contributed 39 sales to the tally, with St Paul adding another 22.

The 96 properties that sold in 2020 netted an average of $408,784 and a median price of $364,950 for sellers. And ten years ago, the 86 multifamily sellers pocketed an average of just $253,614 and a median price of $216,250. Of course, this underscores is a good reminder that real estate continues to be a good investment.

August’s market topper was a 5 bedroom, 3 bathroom 1920’s era side by side duplex in Minneapolis’ Kenny neighborhood which fetched $739,805. A partially rehabbed house conversion in the Windom Park neighborhood of Northeast Minneapolis offered a shot at building equity when it closed above its list price at $163,000.

While the market still favors sellers with a four month supply of inventory, buyers are beginning to have a bit more negotiating power.

Fall often leads to a flurry of activity in the market as many investors decide it’s a good year to take a loss or restart a depreciation schedule, so things may be more exciting next month. But for now, boring feels good.