The booming housing market in the Twin Cities Metro area has spilled over to the rental market, which has seen demand for apartment and single-family rentals skyrocket this year. High sales prices and limited supply leave many prospective buyers no choice but to postpone their homes search in such a competitive market.
Increased demand for housing, along with an improving economy, has competition for rental units soaring, and landlords are taking note, with the national median rent increasing 11.4% in 2021 so far, according to Apartment List.
New Listings in the Twin Cities region decreased 3.6 percent to 7,644. Pending Sales were down 10.3 percent to 6,525. Inventory levels fell 20.1 percent to 7,686 units.
Prices continued to gain traction. The Median Sales Price increased 11.1 percent to $350,000. Days on Market was down 43.6 percent to 22 days. Sellers were encouraged as Months Supply of Homes for Sale was down 26.3 percent to 1.4months.
In new construction, home builders continue to struggle to meet buyer demand, as housing starts nationwide dropped 7% last month, according to the Commerce Department. Single-family home construction declined 4.5%, and multi-family home construction, which includes condos and apartment buildings, was also down, falling by 13%. Labor shortages, rising material costs, and supply-chain setbacks continue to challenge builders, with some projects temporarily paused due to availability and cost of materials.
– SAINT PAUL AREA ASSOCIATION OF REALTORS®