While the broader Twin Cities market remains healthy, the details reveal a story of uneven recovery. Some submarkets are operating at near-full occupancy, while others (often those with heavier recent construction) are still finding their balance. Tracking where demand is most durable provides a roadmap for owners, developers, and investors looking to stay ahead of market shifts.
Stabilized multifamily properties in the Twin Cities region have occupancy rates in the mid-90s, implying vacancy in the 5–7 % range. For example, one 2025 report found vacancy fell from 8.37 % to 7.03 % year-over-year in the metro. [1] Supply delivery is slowing markedly, which positions absorption to outpace new inventory. One Firm forecast the metro’s average stabilized occupancy at 95.0 % in early 2025. [2]
This means the broader market backdrop is favorable for stabilized rental assets: demand is strong, supply is tamping down, and vacancy is trending downward.
The highest-performing submarkets—those with the lowest vacancies and strongest occupancy—share common traits: limited recent construction, strong renter demand, and desirable amenities/location. While publicly available data at fine granularity is limited, regional forecasts identify several standouts:
Mature, inner urban neighborhoods like the Highland / Macalester-Groveland / Summit Hill corridor forecasted occupancy of ~95.3 % in 2025. [3]
Established suburbs, such as Edina, forecast ~94.3 % occupancy in 2025. [3]
Others like Northeast Minneapolis forecast ~95.8 % occupancy. [3]
Some analyses flag suburbs west and south of the core (where new deliveries are minimal) as especially tight. [4]
In short: if you manage stabilized multifamily in a suburb or inner-ring area where there’s been little new development, chances are you’re in one of the strongest occupancy pockets in the region.
Conversely, submarkets with more recent supply or structural headwinds show higher vacancy:
The downtown cores of Minneapolis and St. Paul are forecast at stabilized occupancy ~92.1 % and 91.8 % respectively in Q4 2025. [3]
Some smaller cities within Hennepin County show steep vacancy reductions over time, but higher past vacancy—though many still now are under 5 % vacancy. [5]
So if your asset is in a newly delivered high-rise downtown or in a submarket with high recent competition, leasing may still require marketing and concessions more than in low-supply suburban markets.
Because new supply in the Twin Cities is dropping sharply, and demand remains steady, many analysts expect vacancy rates to continue falling in 2025-26. One forecast for the metro projects average stabilized occupancy at 95 % (implying vacancy ~5 %) by early 2025. [2] With fewer units under construction and absorption still strong, properties in the tightest submarkets should be well positioned.
If your question is “where are vacancy rates holding strongest?” in the Twin Cities multifamily market, the answer is: in the mature, supply-constrained inner-ring neighborhoods and amenity-rich suburbs. These are the pockets where stabilized properties are most full, rent growth is strongest, and vacancy is lowest. The downtown cores and newly delivered towers are improving, but they still trail slightly. From a marketing or asset-positioning standpoint, owners and brokers should emphasize the strength of occupancy and demand in those top submarkets—and for properties outside those zones, differentiate on features and value because the playing field is a little less tight.
If you're a multifamily owner, you need the right team to keep your occupancy high, no matter what submarket you're in. Drop us a line and let's talk about how Corridor can get you there.
[1] “Twin Cities apartment vacancy fell from 8.37% to 7.03% year-over-year” – Finance & Commerce, April 25 2025.
[2] “Occupancy rate in stabilized properties … stood at 95.0% as of March” – Yardi Matrix Twin Cities Multifamily Market Report, Jan 2025.
[3] “2025 Twin Cities Forecast” – MMG Real Estate Advisors.
[4] “Renters flocking to Minneapolis’ suburban apartment units” – REJournal, August 2025.
[5] “75% of the 24 cities in Hennepin County have a vacancy rate below 5%” – Minnesota Housing Partnership Issue #5: Hennepin County, (2024).
