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Market Report
Minneapolis-St. Paul Multifamily
Market Report
2025 Investment Forecast
Suburban Demand Intensifies Amid
Tapering Supply and Policy Shifts
Fewer completions bolster suburban rent growth. Construction will slow in the Twin Cities in 2025. The metro’s delivery slate will shrink from over 8,800 units last year, nearly double the 2015-2019 average, to roughly 3,600 doors. The reduced construction combined with population growth will help tighten vacancy in areas like Burnsville-Apple Valley and South St. Paul-Eagan, where the Southwest light rail extension and larger living spaces are increasing the appeal of suburban living. These submarkets had the metros’ lowest Class A vacancy rates in 2024 at under 5 percent and led in upper-tier rent growth. Several submarkets entered 2025 in more challenging positions. Anoka County and the Plymouth- Maple Grove area began the year with Class A vacancies above 10 percent. Still, with fewer units set for delivery, the supply pullback will limit competition for recently completed Class A units, aiding newer-built properties in these submarkets.