Twin Cities Multifamily Market Shows Dominant Performance to Close 2025

The Minneapolis-St. Paul multifamily market ends 2025 with strong 3.2% rent growth and high occupancy, outperforming major U.S. metros.

By: AXL Media

Published: Mar 13, 2026, 8:16 AM EDT

Source: https://www.multihousingnews.com/

Rent and Occupancy Outperform National Peers

While many high-growth markets in the Sun Belt are currently struggling with oversupply, the Twin Cities are benefiting from a tighter inventory and resilient demand.

Rent Growth: Average advertised asking rents rose 0.2 percent on a trailing three-month basis to $1,609. On a year-over-year basis, rents surged by 3.2 percent, ranking the metro third nationally among major markets.

Occupancy Surge: Stabilized occupancy jumped 60 basis points year-over-year to 95.7 percent as of October 2025. This strength was driven primarily by the "Lifestyle" (luxury) segment, suggesting high-income renters are remaining in the rental pool longer.

Labor Market and Economic Drivers

The regional economy remains a bedrock for housing stability. The metro added 15,000 net jobs over the 12-month period ending August 2025.