The apartment market in the Twin Cities metro area continues to get tighter and more expensive. A new report from research firm Marquette Advisors shows the apartment market posted a 2.4 percent vacancy rate at mid-year in 2011. That vacancy rate is down from just over 3.1 percent in the first quarter and 5 percent a year ago.
The average market rent for the 2nd quarter of this year was more than $921 per month. This is up 2.1 percent over the same time a year ago.
The report shows a sharp increase in the popularity of apartments in the urban centers. Vacancy in the downtown Minneapolis market dropped from 6 percent a year ago to 1.2 percent in the second quarter of 2011. At the same time, market rents are up 6.9 percent.
Overall, the report found that strong demand and high occupancy rates are giving landlords the upper hand in the market this year.