We're exploring the possibility of our next acquisition in the Twin Cities. While we currently operate mainly in Georgia and Minnesota, recent developments specifically in the Twin Cities area have greatly increased our confidence in pursuing our next deal there. The city’s rent growth, unique supply and demand dynamics, and our hometown advantage lay a solid groundwork for a successful investment. Here's the breakdown.

Why the Twin Cities?

Rent Growth

The Twin Cities have always experienced steady rent growth, avoiding the extreme highs and lows seen in other regions during economic fluctuations. In 2021 and 2022, while the Sunbelt and Southeast saw double-digit rent growth, the Twin Cities maintained a much lower rate, placing it near the bottom among major metropolitan areas. However, as those regions have recently experienced a sharp decline in rents, the Twin Cities have risen to the top. According to an article by Yahoo Finance, referencing Redfin's monthly market analysis, Minneapolis boasted the highest year-over-year rent growth in the nation as of April.

As we look towards the future, a key factor driving potential rent growth is the new supply entering the market. In recent years, the Twin Cities have seen a record amount of new housing come online. However, demand has kept pace with this increase in supply. According to CoStar, the Twin Cities are among the top regions in the country for absorption, which is the rate at which new units are being rented out. This high absorption rate indicates strong demand, ensuring that the new housing is quickly occupied.

Supply and Demand Dynamics

As shown in the chart below, in 2024 the Twin Cities are expected to see a significant decline in new housing deliveries. With fewer new units entering the market, rent growth across the region is likely to be substantial, provided demand remains strong. The reduced arrival of new supply, combined with sustained demand, is predicted to create a favorable environment for landlords and investors leading to increased rental prices as the competition for available units intensifies. Consequently, the Twin Cities market emerges as an attractive opportunity for those looking to expand their real estate portfolios and capitalize on the region's shifting rental dynamics.

Hometown Advantage

One of the most compelling reasons behind our decision to target the Twin Cities for our next acquisition is our unwavering confidence in executing our business plan. Our vertical integration model sets us apart, as we do not depend on third-party management to implement our strategies. By purchasing properties locally, we not only invest in the community but also ensure that we have a direct hand in every aspect of the project. This approach enables us to hire local talent and be actively involved as hands-on General Partners throughout the entire process, from rehabilitation to management. We make frequent visits to the property, meticulously inspecting every detail to ensure what is expected gets inspected. This level of involvement and oversight allows us to maintain the quality and integrity of our investments, ultimately driving success.

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Thank you for reading and your interest in BLVD Ventures. We look forward to having you follow along. Feel free to reach out anytime with questions and connect with us further using the button below.