Survey: Minneapolis is third most affordable city for singles who rent

A nationwide survey of apartment rental rates among 50 American cities says Minneapolis ranks among the most affordable places for singles to live, while city officials credit ramped-up efforts toward creating more accessible and subsidized housing.

A report released last month by RentHop ranked the most to least affordable areas based on median “nonfamily” income and the median list rate of studio apartments in the 50 most populated cities in the United States. The report used median income and population data released by the U.S. Census Bureau and compared it to advertised studio prices collected by RentHop.

In Minneapolis, renters spend roughly 21% of their income on housing, according to the report. The median studio rent is $1,054 and the median income for singles is roughly $60,000.

According to the report, the most affordable city is Wichita, Kansas with 18% of residents' income spent on rent, followed by Columbus, Ohio. In Wichita, median studio rent is $590; in Columbus, it’s $878.

New York City remains the least affordable place for single people to live. Single renters there spend almost 70% of their income to rent a studio apartment; the median studio rent is $3,375.

Marquette Advisors, a real estate consulting firm that tracks apartment trends, listed the average studio apartment rent in Minneapolis at $1,375 in 2024. The average rent for all unit types was weighted at $1,544.

There were 7,595 studio units in Minneapolis with roughly 470 units vacant, according to the Marquette Advisors report.

In a post on X, formerly Twitter, Mayor Jacob Frey said the “nation-leading housing work we’re doing is paying off,” citing the survey as a credit toward the city’s efforts to produce more government-subsidized affordable studio apartments and single and family units.

The city of Minneapolis has spent $365 million on housing and built more than 20,000 units at the market rate and lower since 2018.

“We’ve known that the numbers were leading in that direction for several years now,” Frey said in an interview this week. “It’s good to get that confirmation.”

Latonya Reeves, a Minneapolis native, sipped coffee Friday morning in the downtown Minneapolis skyway. She said how affordable rent is depends on where someone lives. She rents an apartment in downtown Minneapolis for $2,000.

“I think I’ve got a good deal,” Reeves said.

Nicole Shaw stood in line at Gray Fox Coffee and Wine Friday morning. She said she recently moved into an apartment in downtown Minneapolis. She said she thinks rent is affordable — for now.

“I hope it doesn’t go up anytime soon,” she said.

Deeply affordable housing is built for people earning 30% or below the median income, according to Minneapolis Community Planning and Economic Development. These homes often require additional government or public funding to keep rent levels accessible to extremely low-income individuals and families, including those experiencing homelessness or living on fixed incomes.

Frey said there was a 1% increase in rent across both market rate and affordable housing units.

The 4d affordable housing program offers rental property owners a property tax reduction if they keep 20% or more of their rental units affordable for people earning 60% or below the median income. On Nov. 14, the city approved a revision to the program reducing rent and income restrictions for people earning less than half the median income.

“This strategy is working,” Frey said. “I tell people, ‘Don’t take my word for it, look at the objective facts; you go around the country, Minneapolis is seen as having the foremost housing policy in the country.‘”

Cathy Capone Bennett, the executive director of the Twin Cities Housing Alliance, said the increase of units in the housing market and the city’s affordable housing programs have kept rents low.

“I fully agree, and that’s what we are seeing in the industry,” Capone Bennett said.

However, Capone Bennett said there has been a decrease in housing permits over the last few years that could flip the progress Minneapolis has made.

Capone Bennett said removing barriers to get projects built and continuing support for new production is the best way to keep rent levels stable.

“We want people to be able to live in a great city,” Frey said. “We want people to be able to afford living in a great city.”