Halfway into 2012 the Minneapolis condo rental market is red hot. How hot? Well rental inventory is less than 1% (.73% according to Maxfield Research) and demand is higher now than in the past few years which is making for some interesting phenomena: sky high rents downtown for pretty much anything and every price point out there. Look at a building like the Carlyle condos downtown–rents for a 1 bed run $2600/month and two beds with two parking stalls (no views) start at roughly $3000/month. Here’s a Carlyle rental we listed for lease last week at over $4000/month.
Year over year increases in downtown rents are to the tune of roughly 11%–renters are starting to sign 24-36 lease contracts simply to lock in on rent prices. They fear in a few years the increase could be even more significant which brings to me another point: year to date sales in the downtown market point to an increasingly high number of previously rented Minneapolis condos and lofts. My team and I at Downtown Resource Group handle a good chunk of the rental market as well as the buy/sell end of things in Minneapolis so it’s fair to say we have a pulse on things. Renters continue to call us telling us they need to find another rental out there in a landscape that is changing very quickly and owners continue calling us ready to list their condo or loft for sale and displace the current renter in the process. The market is tightening on the for sale end as well as the rental end and it will do so for the foreseeable future from momentum of the downtown market as a viable lifestyle for an increasingly larger spectrum of the population.
If you want to begin the search for a Minneapolis rental or looking to get more information on the downtown and Minneapolis lakes area market to make a permanent move in the future check out our site dedicated to the Minneapolis urban real estate markets.