The Minneapolis metro area is one of the top five in the Midwest in terms of vacancy rates, ending 2007 at 4.2 percent, the metro’s best vacancy rate since 2001. The area is forecast to have a 4.5 vacancy rate in 2008.
After a construction boom in the early part of the decade, peaking at 2,554 units in 2003, the area has seen more limited construction. Only 450 units were delivered in 2007, down from 575 the year before. But developers are ramping up again: 1,326 units are expected to come online in 2008.
The Windy City ranked first in rent growth among Midwestern cities as 2007 came to a close. Rents grew 4.4 percent in 2007 to $976 and are forecast to grow another 3.7 percent in 2008 to top the four-figure mark at $1,012.
The top submarket is by far the Gold Coast, which had the best rent growth of Chicago’s 25 submarkets through the third quarter of 2007. Rents in this area just north of downtown climbed 7 percent in 2007 and are forecast to rise almost 5 percent next year to average $1,633.
The third-quarter vacancy rate of 4.6 percent was the lowest the city has seen since 2001, giving Chicago the third-best vacancy rate of any Midwestern metro area. Vacancies are expected to reach 5 percent in 2008, which is still lower than any time since 2001.
The city ranked among the top five Midwestern cities in terms of rent growth (3.9 percent) and vacancy rates (5.5 percent) in the third quarter of 2007.
With limited new supply and a foreclosure crisis that is pushing more people into rental units, Cleveland is forecast to experience nearly 3 percent rent growth annually through 2011. Vacancy rates are expected to hover around 5.9 percent through that period.
Only 520 units have been completed since the beginning of 2006, and this limited new construction has sent the vacancy rate down to 6.7 percent, the best since 2001.
Rents grew 3.5 percent in 2007, and are expected to grow about 3 percent annually through 2011, increasing from an average of $615 to $688 in that time.