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The thermometer may not climb above 20 degrees this weekend in southeastern Minnesota, but the rental market surrounding Minneapolis-St. Paul is among the country’s toastiest. RentCafe identified the Twin City burbs as the fastest-rising in rental competitiveness, jumping from 72.9 to 82.1 in its annual index that measures how difficult it is for a renter to find an apartment.
What a difference a few quarters make. Area vacancy rates hovered at 8.4% earlier this year but dropped to 6.3% in Q3, according to 1stSelect, a Midwestern multifamily research firm. A glut of postpandemic multifamily construction delivered in 2024, but the market is swinging back hard into landlords’ favor.
Renters have flocked to fill those new suburban apartments, drawn by their relative affordability, good schools and easy commutes to the Twin Cities, according to RentCafe. And once those renters sign leases, they’re reluctant to let go of the keys. In 2025, 68% of renters renewed their leases in suburbs like Woodbury, Roseville and Bloomington, Minnesota, up from 66% last year.
