2025 Q3 Multifamily Market Report: Minnesota 411
Download the latest insights on Twin Cities multifamily trends—vacancy tightening, resilient rent growth, and a shifting investment landscape.
The Minneapolis multifamily market is showing signs of renewed strength in Q3 2025. After peaking at a record-high vacancy rate of 8.4% earlier this year, the market has rebounded to 6.3%—its lowest level in five years. This shift is driven by strong demand, a resilient labor market, and a sharp slowdown in new construction.
With fewer than 1,100 units delivered in Q2 and new starts down 80% from 2022, supply is thinning. Meanwhile, absorption surged to 2,500 units—double the pre-pandemic average—pushing rents up 1.9% year-over-year, outpacing national trends.
This report dives deep into:
- Vacancy and Rent Trends by building class and unit type
- Sales Volume and Price Per Unit for Class B & C buildings
- Featured Listings and Recent Transactions across the Twin Cities
- Expert Commentary on what’s driving the market shift
Whether you're an investor, owner, or operator, this report offers actionable insights to help you stay ahead of the curve.
Ready to make your next move in the multifamily market?
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1st Select, we don’t just track the market—we help you thrive in it. From property management to investment analysis, our team is here to support your success.
Give us a call or fill out the form below and a market expert will be in contact to help you achieve stable success.
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