Minnesota Rental Market Trends: What Landlords Need to Know

The Midwestern state of Minnesota has long been known for promising economic opportunities, a robust healthcare infrastructure, ample facilities for raising a family, a thriving cultural landscape, and a gorgeous natural bounty. Hence, it doesn’t come as a surprise that people from other US states or countries often flock to Minnesota to live a well-rounded life. And many choose to rent instead of buying a property for better financial viability and flexibility. So, as a landlord, being aware of Minnesota rental market trends can help you boost your revenue and strengthen your business efficiently. 

Remember that just knowing the average rent in Minnesota is not going to cut it, though that information is crucial. It would help if you also stay updated on the latest regulations and how tenant demands are evolving. Get started by going through this write-up.   

Closer Look at Minnesota Rental Market Trends 

Let’s delve into what’s trending or hot in the Minnesota rental market currently and needs your attention as a landlord: 

Minnesota Overview 

The average cost of rent in Minnesota, based on all kinds of property and all bedrooms, is $1,574. Year-over-year, the rental price has spiked by $24; month-over-month, it has dipped by $25. 

The average rent in Minnesota is also 21% less than the national average, at $2,005. This is likely to attract prospective tenants who prefer the perfect blend of affordability and comfort. 

Over 6,000 rentals are available in the state now, and the market is warm, so you will likely experience decent demand from renters. 

Spotlight on the Twin Cities 

When it comes to Minnesota rent prices, the numbers in the Twin Cities of Minneapolis and Saint Paul deserve special mention as these are hotbeds for potential tenants. 

The average monthly rent for one-bedroom homes in the Twin Cities area ranges roughly between $1,100 and $1,200. For two-bedroom properties, it is between $1,510 and $1,592. And the average rent for three-bedroom accommodations ranges between $1,895 and $1,995. 

As far as Minnesota rental market trends in the Twin Cities go, vacancy rates are low, which means rental units are in high demand. The key reasons behind this include the population growing, more people renting rather than buying, home ownership getting expensive, and the local economy reviving fast post-COVID. 

Demand for rental properties is also higher in summer than in other seasons. This is usually driven by pleasant weather, families with kids relocating during holidays, and fresh graduates moving to start jobs. So, as a landlord in Minnesota, you can charge higher rents during that time and keep vacancies to a minimum.   

Tenants increasingly opt for flexible leases and well-kept properties equipped with contemporary amenities. For instance, pet-friendly rental units with modern kitchens, laundry facilities, etc., are especially popular these days. 

To keep the average rent in Minnesota affordable, rent control laws are in effect in many places, including the Twin Cities. While this is good news for tenants, such laws might affect your profitability. However, you can ensure fewer vacancies, shorter vacancy periods, and longer leases by forging strong relationships with renters. 

In Minneapolis, Northeast (culturally exciting), North Loop (colorful nightlife), and Uptown (natural beauty and retail therapy) have emerged as popular neighborhoods among potential renters. And in Saint Paul, Macalester (academic and lively atmosphere), Lowertown (laidback but urban), and Highland Park (suitable for families) are trending among rent-friendly neighborhoods. 

Minneapolis in Focus 

For a one-bedroom apartment, the average rent in Minneapolis is around $1,337, which is 13% lower than the country-level average of $1,535. Hence, for many renters, the city is an economically attractive option. However, over the past year, rent in the city has gone up slightly by 1.7%. 

While a studio apartment comes at an average monthly rent of about $1,078, $2,010 is the price for a two-bedroom, and $2,467 is the average rent for a three-bedroom. 

40% of the properties for rent in Minneapolis are available at a price between $1,001 and $1,500. 36% of the rentals are available at prices below $700, while 14% fit in the $1,501 to $2,000 range. Evidently, the rental market in the city mostly revolves around mid-range pricing. 

Since the city is known for a favorable job market (a low pre-pandemic unemployment rate of 3.1%), the average rent in Minneapolis is likely to rise in the coming years. The high-income opportunities offered by the Fortune 500 companies here are expected to bring in more capable renters. 

Whittier is one of the most affordable neighborhoods in Minneapolis, where the average rent is $871 for a studio apartment, $1,017 for a one-bedroom, $1,383 for a two-bedroom, and $1,602 for a three-bedroom. Naturally, it attracts many renters. 

Minneapolis's decent public transportation systems, theaters, museums, restaurants, and bars also make it popular among prospective tenants. 

Conclusion 

So, by now, you have a fair idea about Minnesota rental market trends that can help you make more strategic decisions about your leasing business, especially with the guidance of

rental management

 companies. Not only are you aware of the average cost of rent in Minnesota and its top cities, but you also know the state’s rental market position vis-à-vis the nation’s. Moreover, you understand the socio-economic factors driving the rental market in Minnesota, the Twin Cities, and Minneapolis. We have also covered the neighborhoods that draw the most renters.   

As a landlord in Minnesota, you can capitalize on the high rental demand dominating the state if you have a proper action plan in place. From marketing your property, screening tenants, and crafting leases to collecting rent, managing renewals and lease violations, and maintaining rental properties, everything needs to be streamlined and efficient. And since it can be challenging for a newbie and time-consuming, the best

property management companies in Minneapolis

 can come to your aid. 

Boost Your Rental Business in Minnesota with Guardian Property Management 

At

Guardian Property Management

, we know that managing a rental business can be a full-time job requiring you to invest a lot of time, effort, and money. While knowing the Minnesota rental market trends can take you far in this field, our team’s experience, expertise, and knowledge can help you taste success as soon as possible without worrying about the nitty-gritty. This can be especially helpful if you live far from your properties or are too occupied already. So,

contact Guardian Property Management

 to discuss your leasing business and goals at length.

To arrange a consultation, give us a ring at 651-287-2011 or email us at

info@guardianprop.com

.