Urban Cores Apartments Lag Suburban Counterparts in Heartland/Great Plains
While apartment markets in the Heartland/Great Plains tend to experience performance stability, the urban cores in this region do not always follow suit. Looking at the region’s rent change performance just since 2020, suburban apartment operators in the Heartlands/Plains never resorted to rent cuts, and cumulative growth is now at 20% over the past two years. This rate far outpaces performances in local urban cores. Meanwhile, price cuts did occur in the urban cores of those same markets, and the performance since has been mixed. Urban Minneapolis saw deep rent cuts in 2021 and was one of the last areas in the nation to finally get back to pre-pandemic rates, as this area had a lot of new supply to contend with, even before the pandemic hit. Meanwhile, Urban Chicago saw rent cuts hit a little sooner and a little deeper and has experienced a more significant bounce back since bottoming out at the end of 2020. Urban cores of St. Louis and Kansas City didn’t suffer rent cuts to the extent of Minneapolis and Chicago and have seen prices level off closer to their suburban counterparts.
For more information on the state of the Heartland/Great Plains apartment markets, including forecasts, watch the webcast Market Intelligence: Q3 Heartland & Great Plains Update.