MN Saw Largest YoY Rent Increase In The Nation: Report

MINNEAPOLIS — Median apartment rent costs in Minnesota increased over the past year more than any other state, according to a new report from Rent Research.

The report, released Monday, shows the median price of an apartment was $1,679 in Minnesota in March, an increase of 13.34 percent from the year prior. March rent costs were up 1.17 percent from February.

The study compared prices across bedroom types.

Meanwhile, the 10 states that saw the greatest decreases in year-over-year rental costs were Florida, Oregon, Idaho, North Carolina, Nevada, Colorado, Tennessee, Washington, Kentucky and Pennsylvania, respectively. Decreases ranged from -8.80 percent to -1.38 percent.

After Minnesota, the states that saw the highest increases during the past year were Michigan, Kansas, Missouri, New York, New Hampshire, Indiana, Iowa, Wisconsin, and Connecticut, respectively.

In the Twin Cities metro area, the median price of an apartment in February was $1,897, a 7.89 percent increase from the same time last year. Month-over-month, rent costs were up 0.34 percent in March.

Among metropolitan areas, the 10 cities with the highest rent increases are Oklahoma City; Providence, Rhode Island; St. Louis; Kansas City, Missouri; San Jose, California; Jacksonville, Florida; Minneapolis; Seattle; Orlando, Florida; and Cincinnati, Ohio. The increases ranged from 20.37 percent to 6.5 percent.

Nationally, rent costs have increased moderately over the past three months, signaling a return of the rental market’s high-season demand heading into the spring and summer months, according to the report. The median price of an apartment was $1,987 in March. Rent costs have increased by 0.77 percent over the past year, by 0.30 percent in the past month and by 1.17 percent since January.

“While there were moderate gains in March, more substantial rent growth continues to be hindered by high housing costs, which are retaining potential homebuyers in the rental market,” the report said. “At the same time, oversupply in rental markets has also tempered more robust rent growth despite increased demand heading into peak leasing season.”

In the final quarter of 2023, nearly 7 percent of the U.S. apartment stock was vacant, which compares with pre-pandemic levels, according to the report.