Trends in the rental market

The rental market includes all housing unit rentals, including apartment buildings, individual condos units rented out, and rental units in duplexes and single family homes.  The rental market in Saint Paul has experienced significant growth since 2008. From 2008 to 2013, there was a 1.3% increase in the number of housing units in Saint Paul. Underlying that growth is a substantial shift: the number of renter-occupied units increased from 51,480 to 57,271 in this time period, overtaking the number of owner-occupied units, which decreased from 60,054 to 55,717.

While rental rates for one-bedroom apartments around the metro have increased steadily, Saint Paul has maintained relative affordability with a 7.9% increase in the average apartment rental price from Q4 2015 to Q4 2016, as compared to a 14.2% increase for the metro as a whole. Shadow market rental prices for the metro increased by 16.9% in the same period, while prices in Saint Paul increased by a relatively modest 7.9%. 

One bedroom apartment rent prices, 2014 to 2016 (2016 dollars)

Source: Twin Cities Rental Revue; updated July 3rd, 2017

 

A similar trend is evident for two-bedroom apartment rentals in Saint Paul. The average rent for a two-bedroom apartment held fairly constant, with only a 1.1% decrease from Q4 2015 to Q4 2016, and in Q4 2016 this figure was almost 20% lower than the metro-wide average of $1,310. The opposite is true for the shadow market; the average rent for a two bedroom in Saint Paul increased 20.2% from Q4 2015 to Q4 2016, while the average rent for the metro increased by 13.9%.

Two bedroom apartment rent prices, 2014 to 2016 (2016 dollars)

Source: Twin Cities Rental Revue; updated July 3rd, 2017

 

Throughout the metro area, the average price of three-bedroom apartment rentals has remained fairly constant through 2015 and 2016. The average price for the metro increased 4.4% from Q4 2015 to Q4 2016, and in Saint Paul the increase was 3.2%. The price of a three-bedroom unit on the shadow market in Saint Paul and in the metro as a whole held constant over this period.

Three bedroom apartment rent prices, 2014 to 2016 (2016 dollars)

Source: Twin Cities Rental Revue; updated July 3rd, 2017

 

The population of Saint Paul is split approximately evenly between renters and owners, with 51% of the population living in rental units and the remaining 49% in homes they own. The rental population is most dense in the southern portion of the Highland Park neighborhood, as well as the Union Park, Frogtown/Capitol Heights and the Summit-University neighborhoods. The proportion of owners is highest in Highland Park, the eastern portion of Como, the northern portion of Payne-Phalen, the Cherokee Park area on the West Side and the eastern portion of the Greater East Side. 

Percent of occupied housing that is rented, by Census Tract

Multi Family New 2 >80% and ≤100% rented    Multi Family New 2 >60% and ≤80% rented    Multi Family New 2 >40% and ≤60% rented 
Multi Family New 2 >20% and ≤40% rented    Multi Family New 2 >0% and ≤20% rented    Multi Family New 2 no population

Source: U.S. Census Bureau, American Community Survey 2011 - 2015, Table B25003; updated July 3rd, 2017

Last Edited: August 24, 2017