Market Insights

August 1, 2024

What's The Average Rent In Minneapolis, MN

Zoe Harper

Marketing

If you're thinking about moving to Minneapolis, MN, in July 2024, you'll find the average rent for a one-bedroom apartment is $1,337 a month based on the latest figures¹. This is 13% cheaper than the U.S. average, which is $1,535¹. The rent in Minneapolis has gone up slightly, by 1.3% over the last year. This means renters will pay about $17 more each month¹.

Looking at other options, a studio apartment will cost you around $1,078 every month. For a two-bedroom, the average is $2,010¹. And for a three-bedroom apartment, the monthly rent is typically $2,467¹. To comfortably afford these prices, it's best if your yearly income is about $53,472. This is so housing doesn't take up more than 30% of what you earn¹.

Key Takeaways

The average rent for a one-bedroom apartment in Minneapolis is $1,337 per month¹.
Minneapolis rental prices are 13% lower than the national average rent¹.
Rent has increased by 1.3% in the past year, averaging to an additional $17 per month¹.
Studio apartments average $1,078 monthly, while three-bedroom apartments reach $2,467 per month¹.
To live comfortably, a yearly income of $53,472 is recommended in Minneapolis¹.

Understanding the Current Rental Market in Minneapolis

The rental market in Minneapolis is diverse and variable. This reflects the broader trends in housing costs and the economy. Currently, the average rent in Minneapolis is $1,337 per month¹. Despite appearing high, the average apartment size is 663 Sq Ft. This size suggests affordability for many renters in the city¹.

Overview of Pricing Trends

In Minneapolis, about 40% of rentals are priced between $1,001 and $1,500¹. Only 36% are under $700, showing a specific price range concentration. Meanwhile, 14% of rentals are between $1,501 and $2,000¹. These statistics illustrate a tendency towards mid-range priced housing in the market. Also, a studio apartment averages $1,078 per month for around 465 Sq Ft¹.

Comparing Local and National Rent Averages

Comparing Minneapolis to national averages shows it's quite affordable. There's a notable difference in average rents. This makes Minneapolis an economically attractive option for many¹. Analyzing these comparisons offers deep insights into local and national rental pricing trends¹.

Factors Influencing Rent Prices in Minneapolis

Rent costs in Minneapolis are shaped by various elements. This includes economic trends and both supply and demand in housing.

Economic Trends and Job Market

The Minneapolis economic forecast greatly impacts rent prices. A booming job market can make rents rise. However, poor economic periods may cause them to drop. Minneapolis had a low unemployment rate of 3.1 percent before the pandemic. This shows a strong job market that leads to higher rent prices². The city is home to six Fortune 500 companies in Minnesota. These companies offer high-income jobs, bringing in more renters². Such trends increase the rental market demand.

Supply and Demand Dynamics

Housing supply and demand are key in rent changes in Minneapolis. A 4.5% vacancy rate shows a shortage of affordable housing. This scarcity pushes rents up³. From 2016 to 2017, there was a big jump in property sales. It affected 12,350 rental homes³. This increase in sales caused big rent spikes, especially in places like Uptown and Whittier. Their rents went up by 22% and 9%, respectively, from 2010³. For more information, check out the report ⁴.

What's The Average Rent In Minneapolis, MN

The median rent in Minneapolis, MN stands at $1,402. This ranks it as the 56th priciest large city in the U.S. Rent prices faced a minor drop of 0.3% in June. Yet, they have increased by 1.5% over the past year. This jump puts them on par with cities like Las Vegas and Mesa⁵. Also, Minneapolis's rent is 4.8% below the metro area's median rent⁵.

Back in 2019, renting a place in Minneapolis cost you $1,144 a month on average⁶. This was up by 4.95% over three years⁶. During this period, the city saw its rental vacancy rate dip to 3.84%. That's a slight decrease of 0.22% from the year before⁶. In that same year, the real median gross rent in Minneapolis rose by 3.06%⁶.

Several factors cause these rent changes⁵. For one, Minneapolis has a crowded population. This boosts the need for professionally managed rental properties ⁵. Also, living here is made easy thanks to various transport options, including buses and two rail lines⁵. Plus, the city's lively food and craft beer scenes add to its charm. Spots like Surly Brewing Company and Summit are big hits here⁵.

Minneapolis still ranks as an expensive place to live. However, renters gain many perks. Among these are great public transit and a thriving cultural scene. The city boasts art museums, theaters, and events like the Minnesota Fringe Festival⁵.

Average Rent by Apartment Size in Minneapolis

Minneapolis offers different rents based on apartment size. A studio apartment costs about $1,078 a month and is 465 square feet¹. This choice is perfect for single folks wanting to save money but enjoy city life.

Studio Apartments

The cost for a studio in Minneapolis is around $1,078 monthly for 465 square feet¹. These small spaces are budget-friendly. They're great for young workers and students who value both location and affordability.

One-Bedroom Apartments

Looking for more room? A one-bedroom in Minneapolis is $1,337 a month¹. They're about 663 square feet, a nice mix of cost and space. With a recent 1.3% rent hike, they're still popular among renters¹.

Two-Bedroom Apartments

Prices jump with size. A two-bedroom goes for around $2,010 monthly⁷. It's good for families or roommates splitting costs, offering lots of space.

Three-Bedroom Apartments

Need lots of space? Three-bedrooms cost $2,467 a month on average¹. They fit big families or those needing an office at home. Minneapolis has housing for all needs and budgets. For more info, check out apartment rent market trends¹.

Neighborhood-Specific Rent Prices in Minneapolis

Rent prices in Minneapolis can vary a lot from one area to another. Neighborhoods like Whittier and West Calhoun stand out for their unique rent costs. It's important for those looking for an apartment in Minneapolis to know about these differences.

Whittier

Whittier offers more affordable options. The rent for studio apartments averages at $871. One-bedroom apartments go for about $1,017. Two-bedroom options are typically $1,383, and three-bedroom flats average $1,602².

This neighborhood is cheaper than others in Minneapolis. It provides a range of rental prices for different budgets. Whittier attracts a lot of renters because of its reasonable prices and variety.

West Calhoun

In contrast, West Calhoun has higher rents. Studios here have an average rent of $1,282. One-bedroom apartments are around $1,435. Two-bedroom apartments are priced at $2,419. And, for a three-bedroom apartment, the cost averages $2,805².

West Calhoun's rental rates show its upscale offerings and great location by Lake Calhoun. This area draws those who are looking for a higher standard of living.

Comparing Rent in Minneapolis with Nearby Cities

Looking at the rental scene in the Minneapolis area means checking out nearby cities too. Each place has its own housing perks, making some spots more or less pricey. Let's dive into the rental world of St. Paul and Bloomington plus others around them.

St. Paul

St. Paul's rent for a one-bedroom is $1,210 and $1,469 for two bedrooms⁸. The average rent across all apartment sizes is $1,339, just a bit less than in Minneapolis⁸. Rent here is about 5.1% cheaper than the U.S. average⁸. Even so, St. Paul saw a rent jump of 2.4% last year, showing it's a hot market⁸.

With Minneapolis' average rent at $1,337 a month¹, St. Paul's housing prices not only offer a better deal. They also highlight the area's developing rental scene.

Bloomington

In Bloomington, living costs are less than in Minneapolis. Here, a one-bedroom goes for $1,251 and a two-bedroom for $1,551⁸. This difference makes Bloomington an attractive spot for those wanting suburbia with cheaper rent. Minneapolis' rent climbed 1.3% over the last year, keeping the market on a steady rise¹.

Other Nearby Cities

Looking at different cities around Minneapolis shows a mix of rent prices and trends. Eden Prairie tops the list with the highest rent at $1,907, while Brooklyn Park is cheapest at $1,276⁷. Rent growth varies wildly too. Fridley's rent shot up by 6.6%, but Shakopee's fell by -3.0%⁷. These changes highlight the need to think hard about where to live in the Minneapolis area.

For a deeper dive into rental trends, plus lots of stats, check out Apartments.com. They've got all the info you need⁸.

Salaries and Rent Affordability in Minneapolis

To live comfortably in Minneapolis, one should earn around $53,472 yearly. This matches the average rent of $1,337 per month⁹. This salary keeps rent below 30% of income, as advised by experts¹⁰.

Income Requirements for Different Apartment Sizes

Income needs vary with apartment size in Minneapolis. A studio's average rent is $1,078 monthly, and a one-bedroom's is $964¹. A two-bedroom averages at $1,246 monthly¹⁰. These prices reflect the different financial needs for each apartment size.

Cost of Living Comparisons

Living in Minneapolis costs 5% more than the U.S. average¹⁰. Utilities average at $147.19 monthly, and a single person spends about $285 on food¹⁰. Despite these costs, Minneapolis maintains a balanced expense level compared to other cities.

For a family of four in St. Louis County, annual costs hit $102,649⁹. A single person in Hennepin County needs to make around $37,000 annually to cover basic living expenses⁹.

Trends in Rent Growth Over the Past Year in Minneapolis

The Minneapolis rental market trends show an increase in rent prices in the last year. The current median rent in Minneapolis is now $1,402. This is a 1.5% increase from the previous year⁷. Meanwhile, St. Paul's median rent is a bit less, at $1,339. It has gone up by 2.4% during the same time⁸.

Monthly and Annual Changes

In June, there was a slight dip of 0.3% in rent prices⁷. But over the last 12 months, Minneapolis rents increased by 1.5%. This shows a slow but steady rise in the rental market. On the flip side, St. Paul's rent hasn't changed much from the last month. However, it has seen a moderate growth over the past year⁸.

National vs. Local Rent Growth Rates

Looking at Minneapolis vs. the national rent changes, Minneapolis is doing better. The national rent trend went down by 0.7% over the past year. But Minneapolis saw a positive increase of 1.5%⁷. This shows Minneapolis is holding strong compared to the rest of the country.

While the national median rent falls, Minneapolis's market remains steady and slightly growing. Moreover, St. Paul is the 68th most costly large city. This shows how competitive renting in the Minneapolis area is⁸.

For more insights, check out the rental report for St. Paul⁸.

Conclusion

Studying rent control programs shows us how they affect Minneapolis's rental market, revealing big points about rent stability and how easy it is to afford living spaces. An examination of how rents have gone up from 2000 to 2018 shows different changes for different groups of people. This notably highlights the fact that BIPOC families often have it harder than White families when it comes to rent increases. Here's a source for deeper insights. People renting in Minneapolis-St. Paul end up paying $143 more each month. This adds up to 9.4% of what they spend on housing, one of the lower extra costs compared to other big cities¹¹.

In Minneapolis, the middle rent has gone up a bit by 1.6% since January 2022 but has actually gone down by 0.8% from April last year¹². This places Minneapolis as the 87th city out of the biggest 100 U.S. cities when looking at middle rent costs. St. Paul is just behind, ranking 88th¹². Also, the median rent in the Twin Cities is about $300 more than in Cleveland, OH, but almost $2,000 less than in Irvine, CA¹².

Changes in Saint Paul are clearly seen with a 12% increase in renter households from 2000 to 2016¹³. A concerning 75% of those renting households making less than 60% of the Area Median Income actually spend over 30% of their earnings on housing in 2016¹³. This really highlights how big of a problem affordability still is in Saint Paul, showing how important it is to keep researching and adjusting policies to help families with lower incomes¹¹. By really getting these points, people looking to make a difference can aim for housing solutions in the Minneapolis-St. Paul area that are fairer and work better for everyone.

FAQ

What is the average rent in Minneapolis, MN?

In July 2024, the average monthly rent in Minneapolis is $1,337. This is 13% lower than the U.S. average of $1,535.

How do local rent averages compare to national figures?

Minneapolis rents are cheaper than the national average. The city's average is $1,337 per month, compared to $1,535 nationwide.

What economic factors influence rent prices in Minneapolis?

Economic trends and job markets shape Minneapolis rents. Good economic times might raise rents. But in bad times, they could stay flat or drop.

What are the average rental prices for different apartment sizes in Minneapolis?

Studio apartments in Minneapolis cost about $1,078 monthly. One-bedroom units go for $1,337. Two-bedrooms are $2,010, and three-bedrooms are $2,467.

Are rent prices affected by the neighborhood in Minneapolis?

Yes. Rent varies across neighborhoods. For example, a studio in Whittier costs $871 on average. In West Calhoun, the price jumps to $1,282.

How does rent in Minneapolis compare to nearby cities like St. Paul and Bloomington?

Renting in Minneapolis is usually cheaper than in St. Paul or Bloomington. St. Paul's rents are $1,210 for a one-bedroom and $1,469 for two. Bloomington's are $1,251 for one and $1,551 for two bedrooms.

What income is required to afford the average rent in Minneapolis?

To comfortably afford a $1,337 monthly rent in Minneapolis, earning around $53,472 annually is ideal. This ensures rent won't eat up more than 30% of your income.