Twin Cities average rent breaks $1,000 barrier for first time [GRAPHICS]

Categories: How We Live
renthigh560.jpg
Image by Tatiana Craine
Want to rent a one-bedroom in Minneapolis? You'll probably have to pay more than $1,000 these days.
A new report issued by Marquette Advisors doesn't paint a pretty picture for Twin Cities-area renters who aren't in the market for $4,500 Lake Calhoun apartments.

Though the metro-wide vacancy rate ticked up from 2.5 percent during 2013's fourth quarter to 2.7 percent during the first quarter of this year, the average rent across all unit types now tops $1,000 for the first time on record, Marquette Advisors Vice President Brent Wittenberg tells us.

See also:
MNGOP Rep. Franson thinks City Pages blogger should blame his rent increase on Dayton

Here's a Marquette map putting it in (recent) historical context:

TCYearByYearContext.jpg
All graphics via Marquette Advisors

There's a relative bounty of units available in downtown Minneapolis, where the vacancy rate is five percent, but that's mainly because that submarket "has been the most active in the region in terms of new construction and leasing activity."

"Excess vacancy does exist for a small number of [downtown Minneapolis] properties, and incentives have been used in re-leasing of units," the report says. "However, demand has improved during the past 45 days and incentives are moderating."

That said, it makes sense that the average downtown Minneapolis rent is up over seven percent from last year.

Rents are increasing despite a less-than-booming job market, the repot indicates, citing Minnesota Department of Employment and Economic Development stats showing only 900 new jobs were created in the Twin Cities during the first quarter of the year.

Here's a graphic breaking down the rental market for Minneapolis and St. Paul over the past five years:

TCMplsStPaulBreakdown.jpg

And here's the current county-by-county picture...

TCCountyByCounty.jpg

... along with a breakdown for each geographical submarket:

TCSubmarkets.jpg

In April, we spoke with Mike Vraa, managing attorney at the tenant advocacy organization HOME Line, and asked him about why he thinks rents continue to go up.

"As I see it landlords right now are trying to figure out what the ceiling is for their market," Vraa said, before expressing optimism that construction of new luxury units might eventually help bring prices down for cash-conscious renters.

"I'll be honest -- I'm not against giant expensive apartment buildings going up, because somebody staying in the nicest apartment right now might move [to a new, even nicer building], so their old unit becomes available," Vraa said. "So some of the expensive stuff ultimately becomes more affordable, but that's a long-term possibility."

-- Follow Aaron Rupar on Twitter at @atrupar. Got a tip? Drop him a line at arupar@citypages.com.



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96 comments
Chris Peden
Chris Peden

I think in that building. Our tax dollars are paying most of the rent.

Paul Norell
Paul Norell

Thats why I moved to a small town...u can get a 3 bedroom house for about 300.00 in Fairmont.

Kevin Jay
Kevin Jay

I guess just more subsidized housing is now in order for mpls. Reason?...state feels that the poor and disadvantaged need to be integrated for the good of everyone. Now less subisidized housing in suburbs right?

Zachary Malecha
Zachary Malecha

Didn't an article about almost exactly the same thing published recently by CP??

Iam BrianHarvey
Iam BrianHarvey

Still think it's funny that CP used a photo of the city's housing projects ( where everyone has taxpayer subsidized housing) in an article about how rent is too high (for the folks that actually pay rent).... Would think one of the nice, new apartments along the greenway would better illustrate their point.

Cole Young
Cole Young

Might as well try for houses again. Restore your credit and apply.

Kayla Fuller
Kayla Fuller

^ Will it come with cockroaches and bed bugs?

David Bruning
David Bruning

SO many minimum wage comments here but how about this...recently looked for a job in my field and they basically want you to have two bachelor degrees with a minimum 3-5 years experience and the pay range is 13.67-16.73 but you know they'll start you at the lower end. Tell me more about how raising the minimum wage is going to motivate people? If your choice was to have $600 a month in student loans or non at all and sans a college education to basically make the same which would you chose?

St.G
St.G

For what it's worth, when I (single pro) was looking for a place (1BR) to live downtown, most of the good places were Section 8.  The options seemed to be low-income housing (not an option) or $1200+ for something with paper walls in some kind of magic special apartment complex.  I just wound up buying a place instead... and if I ever move the rent will likely be $1200+ for someone.  At least it'll be worth that.

Ryan Roubinek
Ryan Roubinek

Why is there a picture of the crack stacks when talking about 1k+ rent prices.

Hilary Burkhardt
Hilary Burkhardt

Just cross the river- I pay $630 for a one bedroom in Highland Park!

Chris Peden
Chris Peden

Move out of Minneapolis to Eagan. Way better.... cheaper, no section 8, underground heated garage, pool, beautiful scenery, not as many potholes, tons of walking trails and no one with signs that say don't be greedy feed the needy.

Mat Lang
Mat Lang

my rent is 1150 a month been like that for 2 years and live in mpls

Tyler Jorenby
Tyler Jorenby

The 42nd way Minneapolis is just like "Portlandia".

Will Chris
Will Chris

the coast of living is NOT this much--this number is heavily skewed by extremely expensive luxery apartments. It's still easy to find a 3 bedroom for that price, or a 1 bedroom for $500 or less--but it won't be "fully furnished" or come with room service, sorry

Will Chris
Will Chris

lies and bull fucking shit. Maybe if you want to live in some incredibly fancy upscale building in the center of downtown, but I'm in a 3 bedroom apt for $1,050 right now, not a mile from downtown. It ain't the ritz but it's a roof. Quit publishing slanted and bulshit stories like this

Shaun Mason
Shaun Mason

Not simply a minimum wage issue. It's property values propped up when they should have been allowed to fall back to reality - MN/Minneapolis decided to do this as well, endless "Quantitative Easing", and stagnant job creation being culprits. The reality is we should be getting more for our money, not trying to get more money - chasing after skyrocketing costs and flagrant political choices.

Daego Piech
Daego Piech

No kidding! MPLS is so in love with itself. Every time I see those advertisement efforts to convince people this place is so wonderful I just laugh. No mention of our awful street conditions, the butterfly effect of inept Somali drivers that have made the metro a gauntlet, the hazardous Uptown bicyclists or skyline being dominated by gross condo developments, or even the fact that you can't get a burger for under $11 anymore.

Daego Piech
Daego Piech

Yes, you are extremely ignorant. Do a little research. No one makes dick anymore and a college degree is almost a guarantee of not getting hired.

Daego Piech
Daego Piech

Good choice in photo. We are paying it for the Somalians that live there. It's Section 8 but being being billed at market value. Those are contributing to the average cost of rent, so other landlord's think that is reasonable, without taking into account the tens of thousands of homes that don't actually generate market value from individuals that pay their rent without government subsidy.

Chris Welton
Chris Welton

You shouldn't have to have a roommate. Also, utilities, food... Aren't free. Your math is flawed, you also didn't take into account taxes.

Alex Jarvis
Alex Jarvis

Of course you don't Abby. You are using your limited understanding of the issue to defend your ego for having taken a hasty position on the issue without even really understanding it. If you had used your ego to acknowledge that you don't understand the situation you could be taking the position that you need to learn more, because you do, instead of wasting your energy trying to fight the, uh ...public. If not for any other reason, than so you can see several of the flaws in the logic you used to connect your argument statement to the issue that are so clear anyone who reads this, including you should be able to see them.

Kirk Burback
Kirk Burback

Well ya, you told everyone it was the greatest place on earth to live for the past decade. You dictate all new housing will reserve 20-40% of the units to low income. Those two things alone increase demand. It's basic economics people. You can't have one without the other.

Shaun Fleming
Shaun Fleming

I like how the picture is of the ghetto in the sky.

Mel UgoFurst
Mel UgoFurst

Gotta pay for all the subsidized stadiums and such. Property taxes are high, and will continue to rise as politicians find more pet projects to 'improve' your lives.

Abby Hermes
Abby Hermes

I get what you're saying but honestly I think student housing ended up being almost as expensive as paying for an apartment...go figure.

Abby Hermes
Abby Hermes

I would love to live in Edina....can I afford that? Nope. So I don't fucking live there. I don't see the difference.

Abby Hermes
Abby Hermes

Well in a city full of public transportation that should really work out for people....

Jesse Meyer
Jesse Meyer

Last time I checked, if you had trouble making rent, you'll probably have trouble with the cost of procuring, fueling, and maintaining a vehicle.

MX Vann
MX Vann

This is what happens when u raise the minimum wage.

Noel Barrick
Noel Barrick

Rent is still ridiculous there, as well.

Hunter Hawes
Hunter Hawes

better than $2200 in NYC for me how much did it used to be in TC I want to dream of the glory yeArs of cheap rent

Iam BrianHarvey
Iam BrianHarvey

Funniest thing about this article is the photo used for this story about "high rent" is the big housing project in town where many/most residents have their rent completely subsidized by taxpayers.

Aliya Watson
Aliya Watson

Alright- so if everybody fit into the stereotypical, nuclear "student" pinhole you just implied, that would be fantastic. However, not everybody goes to colleges right off the bat that has dorms. Not everybody has a living situation suitable for a dorm. Not everybody wants to rack up another $10,000-15,000 in dorm fees. The list goes on and on.

Jonathan Lund
Jonathan Lund

The reason for the drop in downtown crime or homeless or drugs? They've all been given bus tickets to Duluth. Now everyone who can't afford new apartments in downtown Mpls is laying around on the sidewalks in downtown Duluth begging for money from residents who don't have much money either. And that's what is happening with this new urban society: the Mpls/St Paul's will continue to get very rich and continue to stick their poor, addicted, felons etc on buses to places like Duluth, which continue to get much poorer, but still have the one room hotels that rent by the month downtown and flophouses for the hookers and heroin addicts to live in.

Brian Laudahl
Brian Laudahl

How would most companies operate with employees that have no formal education? You speak of a place like Dharavi, India, which has population of people who have to pillage and fight to the death for their own food. And then shelter...decent shelter in Dharavi is almost unheard of. Ignorance is bliss...

Jer Amundsen
Jer Amundsen

Ridiculous. Duluth and Madison are overpriced also.

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