Twin Cities' apartment vacancies down, rents up

The Twin Cities apartment rental market has been getting a lot tighter. Market research firm Marquette Advisors says in the first three months of the year, the apartment vacancy rate fell to about 3 percent. A year ago, it was twice as high.

Meanwhile, rents are climbing. The average Twin Cities rent in the first quarter was $916 a month. That's up nearly 2 percent from the same period last year.

Marquette Advisors says increased rental demand is coming from a couple sources. Foreclosures and bad credit have forced many people unwillingly into apartments. Plus, individuals who had previously doubled up with roommates or family because of the bad economy are now stepping out into their own apartments as the economy improves.

Marquette Advisors predicts that as the economy and job market pick up, apartment demand will outpace supply. That will drive rents yet higher.