Minneapolis, MN Multifamily Market Report | Cushman & Wakefield | Q4 2025

Market Overview

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Minneapolis closed 2025 with fundamentals largely intact following a sharp pullback in new supply. Deliveries totaled just 3,391 units for the year, down 65% from 9,750 units in 2024, while absorption held at 6,288 units, keeping stabilized vacancy at 6.0%, up only 40 basis points year-over-year. Effective rents averaged $1,544 per unit, a 2.9% annual gain supported by constrained supply and minimal concession activity across most stabilized submarkets. The construction pipeline remained relatively flat at 5,480 units, with new starts of just 708 units in Q4 reflecting continued developer caution on financing. Downtown Minneapolis led absorption with 671 units, while the metro's unemployment rate of 3.5% held 110 basis points below the national average for more than 20 consecutive quarters. With fewer deliveries advancing to completion, the market is positioned for tighter conditions heading into 2026.

‍About Cushman & Wakefield

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Cushman & Wakefield is a global commercial real estate services firm with approximately 52,000 employees across 60 countries and $9.4 billion in revenue. Their Minneapolis Q4 2025 multifamily MarketBeat covers stabilized vacancy, effective rents, net absorption, and construction activity across 30 submarkets to help owners and investors assess Twin Cities market conditions. To read the full report, click here.