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Amid the rise of new apartment towers in Minneapolis come fears from observers that developers might have been overzealous with their projects. In January, the new builds have helped the city become one of only two cities in the country that saw the price of rent go down. According to real estate company Zillow, rent prices in Minneapolis fell to about $1,500 in January, which was 0.3 percent lower from the same period in 2014. Meanwhile, across the nation, rent prices increased a seasonally adjusted 3.3 percent.
Key players in Minneapolis real estate, meanwhile, have communicated that there is no cause for alarm. Investing in commercial real estate property in the city remains hot and the health of the apartment market in the Twin Cities is expected to keep for at least the rest of the year. Demand from baby boomers is expected to match the new builds and prop up the industry.
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Despite many announced or approved downtown Minneapolis large-scale apartment projects, real estate experts in the city are confident that the developers have not overbuilt. There is still a lot of capital that wants to enter the Minneapolis real estate market and the lack of properties up for sale is expected to drive prices up again.
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Steve Liefschultz is the chairman of the board of a real estate company in Minnesota. For more updates about the Minnesota real estate market, follow this Facebook page.
Steve Liefschultz 