Roaming rentals: A rise in apartment vacancy will slow the growth of industry revenue

Over the five years to 2018, the Apartment Rental industry in Minnesota has exhibited strong economic performance, with industry revenue rising an annualized 5.8% to reach $3.9 billion, which includes a slight decline of 0.8% in 2018 alone as a result of rising rental vacancy. Industry growth has been fueled by numerous positive trends, such as broad-based economic and employment growth in the state, falling rental vacancy rates and rising median rents. Trends today are a result of a case of restricted supply. The vast majority of new rental units that have been added have been of the luxury variety, pricing many consumers out of the market...purchase to read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
5.8%
Forecast Growth 18-23
Profit
Employment
21,549
Businesses
16,803

Industry Threats & Opportunities

  • Rising construction in the suburbs of the Twin Cities is expected to ease supply constraints and slow rent growth
  • Industry Report - Industry Key Buyers Chapter

    •The Apartment Rental industry in Minnesota, along with the national industry, exhibits a low level of market share concentration.•Nearly 93.0% of industry operators in Minnesota are nonemploying enterprises.•Market share concentration is unlikely to shift rapidly in the next five years...purchase to read more.

    Additional Insights for the Apartment Rental in Minnesota Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Apartment Rental in Minnesota Industry are

  • Financial structure of the company
  • Management of a high-quality assets portfolio
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Rental vacancy rates and Homeownership rate in Minnesota in the Apartment Rental in Minnesota industry impact industry performance..

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    What's in this report

    What is the Apartment Rental in Minnesota Industry?

    Operators in the Apartment Rental industry act as lessors of buildings used as residences or dwellings. Industry participants are owner-lessors of residential buildings and establishments that rent real estate and then act as lessors by subleasing it to others. In addition to apartment rentals, the industry also includes single-family homes and town houses.

    Industry Products
  • One unit (attached and detached)
  • Two to four units
  • Five to nine units
  • 10 to 19 units
  • 20 to 49 units
  • 50 or more units
  • Cooperatives, condominiums and manufactured homes
  • Industry Activities
  • Renting or leasing residential buildings
  • Renting or leasing residential dwellings
  • Similar Industries
  • Commercial Leasing
  • Storage & Warehouse Leasing
  • Land Leasing
  • Property Management
  • Apartment Rental in California
  • Commercial Leasing in California
  • Storage & Warehouse Leasing in California
  • Apartment Rental in New York
  • Commercial Leasing in New York
  • Storage & Warehouse Leasing in New York
  • Apartment Rental in Illinois
  • Commercial Leasing in Illinois
  • Commercial Leasing in Texas
  • Apartment Rental in Texas
  • Apartment Rental in Florida
  • Commercial Leasing in Florida
  • Apartment Rental in Massachusetts
  • Commercial Leasing in Massachusetts
  • Commercial Leasing in Ohio
  • Apartment Rental in Ohio
  • Apartment Rental in Pennsylvania
  • Commercial Leasing in Pennsylvania
  • Apartment Rental in New Jersey
  • Commercial Leasing in New Jersey
  • Commercial Real Estate in New Jersey
  • Apartment Rental in Georgia
  • Commercial Leasing in Georgia
  • Commercial Real Estate in Georgia
  • Apartment Rental in Michigan
  • Commercial Leasing in Michigan
  • Commercial Real Estate in Michigan
  • Apartment Rental in Wisconsin
  • Commercial Leasing in Wisconsin
  • Commercial Real Estate in Wisconsin
  • Apartment Rental in Washington
  • Commercial Leasing in Washington
  • Commercial Real Estate in Washington
  • Apartment Rental in Virginia
  • Commercial Leasing in Virginia
  • Apartment Rental in Tennessee
  • Commercial Leasing in Tennessee
  • Apartment Rental in Missouri
  • Commercial Leasing in Missouri
  • Apartment Rental in North Carolina
  • Commercial Leasing in North Carolina
  • Storage & Warehouse Leasing in North Carolina
  • Commercial Leasing in Minnesota
  • Commercial Real Estate in Minnesota
  • Apartment Rental in Maryland
  • Commercial Leasing in Maryland
  • Commercial Real Estate in Maryland
  • Apartment Rental in Colorado
  • Commercial Leasing in Colorado
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Rental vacancy rates
  • Homeownership rate in Minnesota
  • Median household income in Minnesota
  • Home price index in Minnesota
  • Yield on 10-year Treasury note

  • Current Performance
    Industry Outlook
    Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Apartment Rental in Minnesota Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Finance and Insurance
  • Retirement & Pension Plans

  • Key Selling Industries
  • Construction
  • Finance and Insurance
  • Landscaping Services
  • Property Management
  • Real Estate Sales & Brokerage
  • Utilities

  • Products & Services
  • One unit (attached and detached)
  • 50 or more units
  • 20 to 49 units
  • 10 to 19 units
  • Two to four units
  • Cooperatives, condominiums and manufactured homes
  • Five to nine units
  • Chart: Apartment Rental in Minnesota Industry Products and Services Segmentation

  • Major Markets
  • Single-person households
  • Two-person households
  • Four-or-more-person households
  • Three-person households
  • Chart: Major Market Segmentation for the Apartment Rental in Minnesota Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Apartment Rental in Minnesota

  • Basis of Competition
    Barriers to Entry
    Associa, FirstService Residential, Gassen Co. Inc., Greystar Real Estate Partners,
  • Table: Associa - financial performance
  • Table: FirstService Residential - financial performance
  • Table: Gassen Co. Inc. - financial performance
  • Table: Greystar Real Estate Partners - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Apartment Rental in Minnesota Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Apartment Rental in Minnesota Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Rental Vacancy Rate (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Dwelling
  • Another name for an apartment or home.
  • Funds From Operations
  • Funds used to define cash flow from operations for REITs that are calculated by adding depreciation and amortization expenses to earnings.
  • Leadership In Energy And Environment Design (Leed)
  • An eco-oriented building certificate program established under the US Green Building Council. LEED-certified buildings are energy efficient and green certified.
  • Occupancy Rate
  • The amount of occupied real estate space as a percentage of total available space.
  • Real Estate Investment Trust (Reit)
  • A legal entity that uses pooled investor capital to purchase and manage income property or mortgage loans. To qualify as an REIT, the entity must distribute at least 90.0% of taxable income.
  • Rental Agreements
  • An agreement with no set period of occupancy in which landlords and tenants are free to make changes to the contract at the end of each 30-day period.
  • Vacancy Rate
  • The amount of unoccupied real estate space as a percentage of total available space.
  • What Our Customers Say

    Why buy this report?

    The Apartment Rental in Minnesota industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Apartment Rental in Minnesota:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Apartment Rental in Minnesota market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Apartment Rental in Minnesota, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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