As New Apartments Pop Up In Mpls., Vacancy Rate Doubles

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.

MINNEAPOLIS (WCCO) It seems like everywhere you look downtown, a new condo or apartment building is popping up. But now, the vacancy rate is going up, too.

Minneapolis-based Marquette Advisors reported the vacancy rate for apartments in downtown Minneapolis at 5 percent at the end of March. Thats up from the 2.2 percent vacancy rate at the end of March from last year.

Even if you dont live downtown, the apartment building boom could affect you.

Downtown Minneapolis North Loop is the new hot place to live. Thats why several new luxury apartments, like Elses Warehouse, opened there in the last year.

Theres definitely been a lot of places in the past two years, which has been really exciting, Brent Webb, managing director of leasing for Greco Real Estate Development, said.

However, according to the new report, renters arent keeping up with the number of apartment projects being built downtown. The vacancy rate for the area doubled in the last year.

Minneapolis city council member Jacob Frey says the uptick in vacancy is temporary, as the number of renters has to catch up with the original demand for higher end apartments.

Any time you get an increase in demand you will also get increase in construction and with the increased construction comes increase in vacancy rate for a certain period of time, Frey said.

See the article here:
As New Apartments Pop Up In Mpls., Vacancy Rate Doubles