Minneapolis, MN Multifamily Market Report | Cushman & Wakefield | Q1 2026

Market Overview

‍Minneapolis's multifamily market continued to demonstrate steady fundamentals in Q1 2026, with total inventory reaching 272,221 units following 876 deliveries during the quarter. The development pipeline totaled 6,054 units under construction, with new starts constrained by elevated construction costs and tighter financing conditions. Net absorption totaled 240 units, down from 2,235 units year-over-year, as supply outpaced demand in select outer submarkets. Stabilized vacancy measured 6.1%, up 60 basis points year-over-year, though core infill locations maintained more consistent leasing activity. Downtown Minneapolis led in rent appreciation at 5.2% year-over-year, while University (4.6%) and Northeast Minneapolis (3.9%) also posted strong gains. Average effective rents grew 2.4% year-over-year to $1,557 per unit ($1.82 per square foot), outperforming many higher-volatility markets and reflecting the region's more stable demand profile. Affordability constraints in the for-sale housing market continued to support renter retention. Investment activity remained active, with nine transactions closing in Q1, including The Burlington Apartments (438 units, $64M) and Avana Maple Grove (264 units, $53M), with out-of-state capital increasingly targeting well-located stabilized assets.

‍About Cushman & Wakefield

‍Cushman & Wakefield is a leading global commercial real estate services firm with approximately 53,000 employees across more than 350 offices in nearly 60 countries, reporting $10.3 billion in revenue in 2025. Their quarterly Minneapolis Multifamily MarketBeat report tracks vacancy, absorption, effective rents, deliveries, and construction activity across 30 submarkets to help owners, developers, and investors assess market conditions and opportunities. To read the full report, click here.