Multifamily has remained one of the stronger commercial real estate assets during the COVID-19 pandemic. But that doesn’t mean that apartment owners aren’t feeling the hurt today.
Just look at the December Minneapolis Rent Report released this week by online apartment guide Apartment List. According to the report, Minneapolis apartment rents dropped sharply in November when compared to the same month a year earlier.
According to Apartment List, Minneapolis apartment rents fell 10.1 percent in November when compared to 12 months earlier. Rents also dropped 2.1 percent in November when compared to October.
The median apartment rents in Minneapolis for one-bedroom units stood at $1,053 in November, while that figure was $1,3777 for a two-bedroom unit.
Not surprisingly, the pandemic is to blame for Minneapolis’ declining rents. According to Apartment List, November marks the seventh straight month in which median apartment rents have fallen in Minneapolis.
Minneapolis’ two-bedroom median rent is higher than the national average of $1,095. But rents across the nation have fallen by 1.3 percent this November when compared to 12 months earlier. That’s better than Minneapolis’ decline of 10.1 percent.
The takeaway here? The pandemic continues its hold on the country and the commercial real estate market. And Minneapolis’ apartment market is far from alone in feeling the strain.
