A dramatic cooldown of apartment construction in the Twin Cities is finally starting to show up in the form of rising rents in the metro.

By the numbers: Year-over-year rent growth on new leases reached 2.5% in February in the Twin Cities, according to Apartment List. That's the 8th stiffest price increase for metros with more than 1 million residents.

• The median rent for a 1-bedroom was just under $1,300 in February.

Why it matters: A new Harvard report finds a record number of renters are "cost-burdened," spending more than 30% of their income on rent and utilities.

• Nearly 48% of Twin Cities renters fit that description. Rising rents could exacerbate the problem.

Between the lines: Rent growth is one metric that developers are watching as they try to make apartment construction work again.

• They're still dealing with surging construction costs and heightened interest rates.
• Developers began construction on 5,551 multifamily units in the Twin Cities in 2025, according to preliminary federal data. That's down from the metro's peak in 2022, when cities and towns issued permits for 15,840 units.

Zoom out: Rents are falling in many Sun Belt cities where a continued boom created glut of new supply.

• That has caused developers to pause building in those places, too.

What we're watching: Fewer people move in the colder months.

• Expect rents to climb as the peak summer season nears.

The bottom line: The era of sweet rent deals are gone and they likely won't be back for a while, considering a largely dry pipeline of new construction in the Twin Cities.

Where rents are falling most

"Brass, gold, silver, all of it costs significantly more than it did even six months ago. ... The reality is that the cost of making jewelry has changed a lot over the past year and we've reached the point where we have to adjust."

The big picture: A volatile metals market is forcing jewelers across the country to rethink price points — and get creative with materials, Axios' Kelly Tyko recently reported.

• Loden said prices for some of her items will rise by a "few dollars, others closer to 10 or 25% depending on materials and production costs."

Go deeper on what's driving costs up

TKTKTK

U.S. Sen. Elizabeth Warren and her allies are eyeing Minnesota's Democratic Senate primary as the next battleground in their ongoing fight against the cryptocurrency industry.

Why it matters: Crypto has been dumping its colossal campaign war chest into Democratic primaries — and helped boost now-Senate candidate Rep. Angie Craig's 2024 re-election bid in a competitive south metro district.

• Warren has been fighting back personally, bringing her formidable fundraising machine to the aid of crypto-skeptical candidates.

Zoom in: Warren has endorsed Craig's chief rival in the primary, Lt. Gov. Peggy Flanagan.

• Craig got an "A" rating from the pro-industry group Stand With Crypto. Flanagan received an "F."

Catch up quick: Warren's push scored a win in Illinois last week.

• A candidate Warren supported, Lt. Gov. Juliana Stratton, won the state's Democratic Senate primary despite a major pro-crypto PAC spending nearly $10 million against her.

What we're watching: A Warren ally told Axios that other Democratic candidates should view Stratton's win as a cautionary tale about the consequences of "embracing the deregulatory demands of the crypto industry."

Between the lines

🎈 1 big thing: For five years, Axios has delivered smart, trustworthy local news to communities like yours — and we're just getting started.

Why it matters: Memberships sustain the journalism you rely on and help us keep delivering strong, independent reporting focused on what matters most.

• Your newsletter helps you stay informed and connected. Help us power the next five years of Axios Twin Cities by becoming a member today.

With spring break travel season in full swing, we thought we'd ask readers to help us settle a debate:

• What's the best concourse at MSP?

Why it matters: You may not have control of your gate assignment, but knowing which wing has the best seats, eats and people watching can be a game-changer when facing a delay.

📍Need a refresher on the amenities in each concourse and terminal? Peruse this map of Terminals 1 and 2.

• There's also a list of restaurants and other attractions here.

✈️ Then, weigh in with our poll. Be sure to leave us your name and hometown if you want your arguments included in our story about the results!