At the beginning of 2025, Costar reported that the Twin Cities Multifamily vacancy rate had “compressed from an all-time high of 8.4% in early 2024 to 7.4%” (and more recently down to 7%).

However, Costar data typically refers to 5+ unit properties and gets more accurate as the building size increases. 

I wanted to know how these statistics compare to smaller 4-unit residential buildings in the Twin Cities. I had a theory that owners of smaller buildings tend to keep their units full by offering more affordable rents than larger buildings. To test my theory I reached out to over 1,200 4plex owners and this is what I found out.

*A few responses suggested confusion about how occupancy was intended to be reported. We corrected a couple numbers to reflect what we believe the respondent intended.

Year-over-Year Occupancy

• 13 respondents had higher occupancy in 2024 than 2023
• 15 reported higher occupancy in 2023

Management Approach

• Self-managed: 23

• Professionally managed: 2

• Owned a management company: 2

📈 Rent Increases When Filling Vacancies

• Average increase: 13.2% 

Detailed rent increase stats:

• Mean: 33.3%

• Median: 3.5%

• Standard Deviation: 54.9%

• Minimum: 0%

• Maximum: 200%

🧠 Interpretation:
The median is much lower than the mean, indicating that a few large rent hikes (100–200%) are skewing the average upward. Most landlords raised rents modestly—or not at all.

🛠️ Turnover Costs

• Average (mean): $3,326.32

• Median: $1,000

• Minimum: $0

• Maximum: $24,000

Twin Cities Rents for New Tenants in 2024

Top Sources for Filling Vacancies

Respondents most frequently used:

• Zillow.com

• Facebook Marketplace

• Craigslist

• Apartments.com

• Referrals

• Yard signs
  Several responses suggest landlords often use multiple platforms to advertise vacancies.

   

⚠️ Limitations

This survey was sent to over 1200 local 4plex owners. To encourage responses, participants were entered into a drawing for a $50 gift card.

We received 30 responses. This is fewer than we had hoped for and well below what's typical for statistical rigor. While not a definitive dataset, these insights still provide a valuable snapshot of what 4plex owners in the Twin Cities experienced in 2024.

Stay tuned for future survey invitations and help us build a better picture of the market over time.

🧾 Conclusion: 4plex Owners Keep Units Full and Rents Reasonable

The results of this survey support the theory that 4plex owners in the Twin Cities tend to maintain higher occupancy rates and offer more affordable rents compared to larger multifamily buildings.

• While Costar reported a 7.4% vacancy rate for the broader Twin Cities multifamily market (which focuses on 5+ unit properties), the average vacancy rate among 4plexes in this survey was just 11.5%, with a median of only 2.1%—suggesting that most owners keep their buildings close to fully occupied.

• Average rents across all unit types—ranging from ~$832 for studios to ~$2,030 for 4BRs—also suggest a value-oriented pricing strategy, often below what’s seen in institutional-grade properties.

Many 4plex owners manage their buildings themselves, avoid long vacancies, and are willing to keep rent increases modest in exchange for stability. In short, smaller building owners appear more hands-on and tenant-conscious, which helps them keep units filled, even in challenging markets.

While the sample size was modest, the consistency of the findings offers a compelling glimpse into how mom-and-pop landlords operate differently—and often more efficiently—than their larger counterparts.

Antitrust Compliance

This survey was conducted in compliance with state and federal antitrust regulations. All data collected was aggregated and anonymized to ensure that individual responses remain confidential. No identifiable information about specific properties, owners, or tenants has been shared.

The purpose of this survey was to provide general insights into occupancy trends for informational purposes only. The results are not intended to encourage or facilitate any coordinated business practices, pricing strategies, or competitive behaviors.

Thank you for your participation and commitment to maintaining a fair and competitive marketplace.