Twin Cities rents are softer for the rich
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Rent was up for middle-tier Twin Cities apartments at the end of 2023, according to real estate firm CoStar Group, which rates buildings based on design, amenities, location and certifications.
Why it matters: Renters with the deepest pockets are more likely than others to score a deal.
The big picture: Demand for more affordable apartments is helping to keep middle-of-the-road rent prices elevated, Jay Lybik, CoStar's national director of multifamily analytics, tells Axios.
- U.S. rents are generally still above pre-pandemic levels, analysts say.
Yes, but: A flood of new construction is pushing down U.S. rents at the high end, where there are often more apartments than renters who want them.
State of play: While the country needs more housing, most new apartments are loaded with amenities in prime locations.
- Some of the Twin Cities' recently built high-rises offer indoor pools, saunas and pet decks.
Reality check: Rents in the Twin Cities grew slower than other big metros, but they're still pinching a large share of renters.
- One in every four Twin Cities renters spends at least half of their income on rent and utilities, according to a new Harvard report, which notes the squeeze is especially hard on those with lower incomes.
Of note: The prices you see in the headlines are asking rents, meaning new leases only.
- Rents usually don't come down for those who aren't moving, Axios' Emily Peck reports.
Go deeper: Housing was wildly unaffordable for half of renters in 2022, report shows