Pioneer Press: “Apartment values plunge as Twin Cities developers face tough regulations, high interest rates”

Several industry experts agree that the rental market in Minnesota’s Twin Cities has “quieted” in recent years. Notably, new housing construction permits, including those for mother-in-law units and additions to public housing, have dropped from 1,638 in 2021 to 1,130 in 2023. Industry representatives and developers suggest several potential causes ranging from tough regulations (e.g., rent-control ordinances), high interest rates, and limited population growth in St. Paul and Minneapolis. Additionally, while it has become cheaper to rent than buy in the Twin Cities, data from HousingLink shows that affordable housing remains elusive in much of the area.  — Pioneer Press