According to the Star Tribune, developers in the Twin Cities are building 10% more apartments in the area as compared to a year ago. Measured through September, 3,920 new units were added which doesn't include
more than a dozen rental projects that are still being reviewed by the Minneapolis Planning Commission. Two high-rise towers and half-dozen midsize buildings are included in that mix.
The flurry of new projects will help make 2018 what is expected to be the second-busiest year for apartment construction on record despite growing concerns about the depth of demand in some areas. To date, 2014 was the record with 4,451 new units.
“The mood is cautiously optimistic,” said Matthew Rauenhorst, vice president and general manager with Opus Development Co., which recently completed a luxury high-rise in downtown Minneapolis and is about to break ground on a luxury apartment building overlooking the Mississippi River. Rauenhorst said that leasing progress has exceeded expectations at the downtown high-rise.
He cites a healthy local economy and strong job growth as the primary drivers of additional demand, but a fully loaded pipeline of new proposals is reason for caution. “How many of these proposed projects will get built and when will they get built?” he said. “We will have to wait and see.”
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