Attention, developers: The hottest rental market is in our backyard.
Midwest and Minneapolis are rental markets to watch in 2025.
Minneapolis is the top city for attracting rental interest, and developers in the know may be keeping their eyes on the market throughout 2025 as they consider their next commercial build. That’s according to RentCafe.com, which issues reports that rank the top rental markets based on demand, website interactions, saved searches and favorites, and availability of apartments.
Apartment seekers have their eyes on Minneapolis
The site reports that Minneapolis tops the list of cities to watch in 2025, as it consistently ranked at or near the top throughout 2024. Commanding the top place seven times in 2024 positioned Minneapolis as the most desirable locale for renters with a 36% year-over-year increase in page views for listings in the city. The city also saw an 8% increase in saved searches, indicating consistent demand for rental properties. Meanwhile, Minneapolis experienced a 16% drop in apartment availability compared to the previous year. The market is particularly attractive to apartment seekers due to the lively urban setting and amenities, relative affordability and a renowned quality of life.
Consistent renter interest indicates opportunity for developers
The RentCafe.com report indicates robust opportunities for developers to grow their portfolios in the region. In fact, the Midwest, overall, is a top region to keep an eye on in the coming calendar year, and it ranks as the most sought-after by renters along with the West. Each of the two regions claimed 10 spots in the top 30 cities to watch. Other cities at the top of the list of those to watch in 2025 include Atlanta, the 2024 top city to watch; Overland Park, Kansas, in third; and Cleveland and Washington D.C. to round out the top five. Also of note for our region: Chicago ranked ninth, and St. Paul, Minnesota, came in 29th.
RentCafe.com is a website that allows prospective tenants to search for homes and apartments nationwide. Researchers compile reports on the rental markets to watch based on data related to the 150 most populous cities in the U.S.
Ready to build multifamily housing in the Midwest? Design-build is key.
Owner/developers who want to explore opportunities for new multifamily housing construction in the Midwest further, including La Crosse, WI, and Rochester, MN, may want to consider the design and build construction model. With design-build, design, estimating, project management, and field operations professionals collaborate with each other, and the owner, to maximize the owner’s investment and minimize the owner’s risk. When you’re ready to capture the consistent renter interest in properties in Minnesota or Wisconsin, contact us to get started leveraging our predevelopment services. Our team will help you with all the particulars of getting deals done from concept to completion.