Minneapolis St. Paul vacancy & cap rates on the rise

[Matt Higgins]

Did anyone else see this article in the Strib today?  
https://m.startribune.com/twin...

For those who don’t subscribe, I will give you the highlights.....

They expect vacancy in Mpls/st paul to go from current 3.5% (2.5% last year) up to 7% next year, rents are expected to fall, and only 84% of C class renters are currently able to make their payment.  

I always said I would move my investing towards downtown if values dipped, but I’m sitting on my hands until the eviction moratorium ends.  Anyone out there love minneapolis or St. Paul at the moment?  I will say that our management company hasn’t seen a dip in rents, vacancy, or economic vacancy, but our target area isn’t the metro.  

[Jared LaLonde]

I filled a few units in Minneapolis over the last month or so-   they ended up about 10% less rent than I was expecting.  One 2 bed condo in Whittier was especially slow for inquiries, It was previously rented at 1550 and ended renting at 1400. Even with the decrease, the interest was pretty low.  It's a good time to try to keep your current tenants if possible.