Minneapolis-St. Paul Multifamily
Market Report

Select submarkets benefit from easing supply. After elevated deliveries and strong demand between 2020 and the first half of 2025, momentum slowed in late 2025. That trend is expected to continue in 2026, with net absorption projected to return to its long-term annual average over the coming year amid moderating population growth and a softer labor market. This will result in only modest cooling in rent gains, keeping the Twin Cities firmly among the Midwest’s highest-rent metros. In 2026, a slight reduction in deliveries may ease competitive pressure on existing properties, particularly in Downtown Minneapolis and Uptown-St. Louis Park, where little additional supply is expected this year and next. In contrast, St. Paul will see higher completion rates following the city council’s 2025 amendment permanently exempting post-2004 properties from the 3 percent rent cap. Much of this construction is concentrated in East St. Paul, which could moderate rent growth after the submarket recorded one of the metro’s strongest annual increases last year.