Minneapolis, MN Multifamily Market Report Q3 2026

Q3 Absorption Turns Negative, Yet New Supply Falls

Demand

Minneapolis posted net absorption of -388 units in Q3 2026, against -651 in the same quarter last year. Vacancy is 4.2%, 3 bps looser than Q3 2025. Plymouth/Maple Grove is the tightest submarket at 3.0% vacancy; Eden Prairie/Shakopee/Chaska leads rent growth at +5.5%. Trailing-12-month absorption of 2,212 units is down from 10,291 a year earlier. Rent of $1,716 is up 3.2% year over year and a record. Vacancy sits 170 bps below the Q1 2024 peak of 5.9%.

Supply

Minneapolis recorded 951 units of completions in Q3 and 2,441 over the trailing twelve months (-55% versus the prior TTM period). Units under construction equal 1.3% of inventory, concentrated in Eden Prairie/Shakopee/Chaska at 8.1% of its stock. Annual completions peaked at 10,146 units in 2021. Q3 deliveries were 72% above last year’s 553. The 4,504-unit pipeline equals about eight quarters of absorption at the trailing pace.

Investment Market

Minneapolis recorded $2.4B in sales over the trailing twelve months, -8% against the prior TTM period; Q3 accounted for $701M. The high-water mark in this series is $2.8B in 2025. Minneapolis cap rates average 6.20%, down for 7 straight quarters. Pricing sits at $166k per unit, higher for 2 consecutive years. Price per unit is 8% below the Q4 2021 peak of $181k.