Reporting Susan-Elizabeth Littlefield
MINNEAPOLIS (WCCO) – It seems Minneapolis is at the top of another list.
A new ranking says Minneapolis one of the top 10 cities where renters should expect to pay more in 2013.
The city has one of the hottest rental markets in the country, and the vacancy rate for rental properties is 2.4 percent – one of the lowest in the U.S.
Emily Faltesek knows what to ask on an apartment, as she’s become a bit of an accidental expert.
She lives in south Minneapolis but is looking for something walkable to her job at Target downtown.
Her search has turned into an all-out hunt. She says she’s looked at seven places so far.
“There’s not very much vacancy. Prices are really high,” she said. “There’s really not many amenities included.”
At the moment, it’s harder to rent an apartment in Minneapolis than in Seattle, Denver, and even San Francisco.
University of St. Thomas real estate instructor Herb Tousley said there are a few reasons the city’s rental market is thriving.
For one, there was no overbuilding, unlike in other cities that ended up with an influx of rentals during the recession. Another reason is that the housing crisis scared younger people into renting longer. And a third is that people who lost their homes and have bad credit usually need to rent.
While Tousley said the market is now catching up – and more properties are being built — he expects rental prices to go up over the next two years.