Minneapolis boasts one of the lowest unemployment rates in U.S.

The Minneapolis-St. Paul economy continues to boast one of the lowest unemployment rates in the country, currently hovering around 3.4 percent, which is considered full employment, according to Colliers multifamily year-end 2017 research and forecast report.

Although the Twin Cities is at full employment, more than 28,000 jobs have been added in the last 12 months. The metro area is home to 16 Fortune 500 company headquarters, as well as large local employers such as the University of Minnesota. The local workforce ranks 11th in the country in terms of education, with 41 percent achieving a bachelor’s degree or higher. The average annual household income of $74,500 tops the national average by 29 percent.

Abundant and excellent employment opportunities, paired with a healthy population growth rate for multifamily development, averaging around 1 percent per annum over the last five years, has led to a strong rental market. This strength is best exemplified by the metrowide 97.6 percent occupancy rate, which is just 0.2 percent below its two-year high. The Twin Cities metro has also experienced the highest rental rate growth in the Midwest at 3.6 percent, contrary to its history as a slow-growth market.

New construction in the area has continued at a healthy pace as well, albeit with an expectation that overall deliveries will drop in the coming years. Over the last four quarters, the metro area has received more than 6,611 new units, with close to 9,413 units slated to be delivered during the next 12 months.

Colliers’ market report can be found here.