Minneapolis’ development pipeline has cooled sharply since the 2023 peak: by Q4 2025 the market had 37 buildings under construction totaling roughly 6,000 units, down from about 18,100 units under construction in early 2023.
Minneapolis rent growth remained resilient through Q4 2025: market effective rent ended the quarter at $1,549 per unit, up +0.2% quarter over quarter and +2.8% over the trailing 12 months.
2026 is projected to be a more balanced year in Minneapolis, with trailing-12-month absorption forecast at 4,336 units by Q4 2026 versus roughly 4,050 units of net deliveries, supporting modest occupancy firming into year-end.
Minneapolis enters 2026 with fundamentals that are stabilizing and gradually tightening, supported by a materially cooler development cycle and demand that remains consistently positive...
