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The Shift You Can’t Ignore: Apartment Construction Is Way Down

If you've been thinking about buying or selling a home in Minnesota, there's one trend you need to know: apartment construction in the Twin Cities has dropped by more than 50% since 2022.

In fact, multifamily building permits plummeted from over 15,000 in 2022 to just around 5,000 in 2023—and even fewer are expected in 2025. In May alone, only 22 new multifamily units were approved across the entire metro area.

What does that mean for you? Whether you're a buyer or a seller, this trend creates a unique window of opportunity.

What Buyers Should Know: Rental Scarcity Means Higher Rents

With fewer new apartments being built, the rental market is tightening up—fast.

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Here’s what that means for buyers:

• Rents are rising: Fewer options lead to higher prices, especially in fast-growing suburbs and lakeside areas.
• Owning is more appealing: As rental costs go up, the stability and long-term savings of homeownership stand out.
• Competition is shifting: You’re not just competing with other buyers—you’re also competing with renters ready to become owners.

If you’re on the fence about buying, now is the time to get pre-approved and lock in your home before the pressure builds further.

What Sellers Should Know: Inventory Is Low, Demand Is Rising

For homeowners thinking about selling, this slowdown creates a golden moment.

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Here’s what that means for sellers:

• Increased demand: As renters pivot toward buying, you’ll have more serious buyers looking at your home.
• Higher pricing power: Limited new inventory puts existing homes in high demand, especially in desirable areas.
• Faster sales: Homes are moving quicker in markets where rental options are shrinking.

In short, fewer apartments being built = more eyes on homes like yours.

How I Help Buyers and Sellers Navigate This Shift

As a top real estate agent in Northern Minnesota, I stay on top of the trends so my clients can stay ahead of the market. Here’s how I help:

For Buyers:

• Create a strategy based on rental market data
• Prioritize listings in areas with strong appreciation potential
• Help you compete with confidence in fast-moving markets

For Sellers:

• Craft compelling marketing to highlight your home’s edge over renting
• Use pricing insights from current inventory and rental data
• Maximize visibility using pro-level listing photography and video

What’s Next?

This isn’t just a dip in apartment construction—it’s a shift in how people live, rent, and buy across Minnesota.

If you’ve been wondering whether now is the right time to buy your first home, move up, or sell a property that’s ready for the next owner, this trend is your signal.

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