Rent in the Twin Cities seems to be surging and overtaking the national average. Experts say that the high demand for apartments is due to the improvement of the economy and the good quality of life it offers to area workers.
According to this report by Apartment List, Minneapolis is the 18th most expensive major US city, with an average bedroom price 21 percent above the national average rate. This shows that renters are more than willing to pay a small premium to live closer to the city or within city boundaries.
With new job opportunities in the area, Twin Cities residents are now considering relocation to be closer to work and city life. Young urban professionals and empty nesters are renting out apartments near shopping districts, public transit, and other amenities.
Despite current real market strengths, however, there is still growing concern that a bubble is looming.
A building boom might saturate the market with apartments. Too many vacancies could depress rental rates at the expense of property owners. But with so many new products entering the market, real estate professionals and apartment owners can only calculate their moves, wait for the right opportunity, and adapt to the changing bill of health of the market.