The average monthly rent in the Twin Cities rose to $1,000 in the first quarter of the year. That's a 3.5 percent increase and represents the first time that the average rent has hit four figures. Rents in downtown Minneapolis experienced an even more dramatic jump, with an increase of 9.1 percent.
The Star Tribune reports that a greater supply of rental units does not seem to be having an impact on price. The newspaper said that while more than 1,000 new apartments came on the metro market in the first quarter, the overall supply of rental units remains below what's considered healthy levels, which is pushing rents higher.
The story quotes a new Trends report on the metro rental market from Marquette Advisors. It said that the metro vacancy rate inched up only slightly to 2.7 percent. The report indicated that the vacancy rate could rise in the next several months as more property goes on the rental market.
The new thousand-dollar threshold is not considered a grand development for advocates for people seeking affordable housing. The Pioneer Press reported that average rents along the Green Line in St. Paul are trending up as the first leases are signed at new high-end apartments in downtown St. Paul and around the University of Minnesota. The story said that between 2011 to 2013, developers in the area added one unit of affordable housing for every 12 units of market-rate housing.
On Friday the legislature included a measure to allocate $100 million for affordable housing in its bonding bill. Community leaders from around Minnesota have pleaded with state officials for more housing, saying the limited supply is holding back growth in their regions.
In March, the Met Council issued a report that found that the Twin Cities has some of the nation’s biggest racial and ethnic disparities in levels of homeownership.
It's not considered a grand development for advocates for affordable housing.