Minneapolis Urban Core Claims Lion’s Share of Annual Demand

Urban core submarkets pushed apartment demand in Minneapolis to historic highs in the past year. In 2021, annual apartment demand in Minneapolis-St. Paul reached a solid 12,641 units, the highest level on record since RealPage began tracking the market. Strong absorption in urban core submarkets undoubtedly propelled the entire market. Combined annual demand in Downtown Minneapolis/University, Uptown/St. Louis Park, South Minneapolis/Richfield and North Minneapolis accounted for over half (54%) of the market’s total absorption volume. Downtown Minneapolis/University led all other submarkets with over 2,200 units absorbed in calendar 2021, followed by roughly 1,500 units of demand each in Uptown/St. Louis Park, South Minneapolis/Richfield and North Minneapolis. The only other submarkets to come close to those levels were East St. Paul (1,200 units) and Central St. Paul (1,100 units).