According to apartment search site ABODO.com‘s August 2016 National Apartment Report, Minneapolis experienced a 14% increase in rent price from July to August of this year, ranking it the city with the highest rent increase in the entire U.S.
The average one-bedroom in Minneapolis now costs $1,368 per month, up from $1,197 in July. Nashville rents rose 13% to $1,124 per month, while Portland ($1,370) and Atlanta ($1,451) showed increases of 12% and 11%, respectively.
So, to what do we attribute this first-in-the-country rent increase?
“Our research team believes that seasonality in cities like Minneapolis and Milwaukee play a huge role in summer rent increases,” says Sam Radbil, Sr. Communications Manager at ABODO. “Last month in our National Apartment Report, Milwaukee showed the largest increase in rent price and throughout the summer we’ve seen multiple cities in the Midwest experience large rent increases. As the weather warms up, apartment hunters become increasingly motivated to finalize their next lease.”
In addition, Baby Boomers are looking to downsize into a maintenance-free lifestyle. And with all of the new rental developments going up in Minneapolis, many of these Boomers are heading back into the city.
“With new groups of people looking to rent, the demand is increasing quickly and that is causing prices to skyrocket,” says Radbil.
Compare the price for a one-bedroom apartment in Minneapolis to other cities around the country.
Minneapolis is number 1 in many things; rate of rent increase is probably not a category we aspire to be in.