MHP's newest quarterly 2x4 Report points to likely rent increases, with plunging rental vacancy rates in the Twin Cities. Rental demand is up, while 2006-2010 also saw the lowest multi-family housing construction in 50 years. Meanwhile, high homelessness persisted in the first quarter of 2011.
Data for the Twin Cities indicate that the rental market is tightening as the economy improves. Foreclosed former homeowners, people leaving doubled up situations, and young people able to leave parents' homes are all increasing demand for apartments. 
Source: Marquette Advisors
On the supply side, in Minnesota, only 16,400 multi-family units were issued building permits from 2006 to 2010, the lowest 5-year number since at least 1961-5, as far back as data is available. With demand up and supply down, higher rents are likely, which low-income Minnesotans can ill afford.
However, mortgage delinquencies and pre-foreclosure notices trended downward, offering hope that the housing market may stabilize eventually. Home prices have fallen dramatically from their 2006 peak under the weight of over 115,000 foreclosures statewide.
For the first quarter of 2011 additional data highligts included:
- Vacancies in the Twin Cities rental market plunged to 3.1%, the lowest in a decade, while average rents climbed to $916.
- 6,639 school children were identified as homeless by Minneapolis and St. Paul public schools through March of the school year. The combined number has increased each year since the 2007-8 school year.
- Mortgage delinquencies fell to 5.8%, representing a fifth straight quarter of improvement.
- In the Twin Cities metro, home sales prices fell, with high inventories of homes for sale. A record 38% of the homes on the market were foreclosures or short sales.
- Monthly employment in residential housing construction averaged only 7,500 workers, an 18-year low for Minnesota.
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