Rent drop in the Twin Cities?

[Wendy Man]

RE Journal is reporting no growth in rent compared to 2021, and other places are reporting drops in Minneapolis rent.

What are you seeing?  For us, we have definitely noticed a drop even from Jun to July/Aug this summer. 

https://rejournals.com/an-end-...

[Jacob Carroll]

Hey Wendy, thanks for asking this question. I would say that there is definitely softening in demand. In my opinion it is less about a decrease in rental prices, but instead more an indication of seasonality. Between end of October to after the start of the new year there is much less demand as people are enjoying the holiday season and many are not interested in moving during cold weather. 

My advice is to structure your leases / renewals to take March - May if possible. This helps as people are easier to place during this time. Also, you may need to make concessions to increase your tenant pool. You can try allowing animals or accepting partial security deposit if upfront cash is tight. 

Wishing you the best! Cheers!