The scope of the shadow rental market of condos, duplexes, houses, and townhomes was largely a mystery until now. The quarter three Twin Cities Rental Revue provided unique insight into shadow market activity.
Would you have guessed that only 38%% of listed openings in the Twin Cities were apartments and 62% were shadow market? Here is the breakdown of Q3 openings by building type:
- Apartments - 38%
- Single Family - 28%
- Townhomes - 15%
- Duplexes - 12%
- Condos - 6%
These numbers indicate that the shadow market is a force in rental housing, and raises the question about the true availability of rental housing in this market. News stories indicate that vacancy is declining, but those numbers don't account for shadow market units. It will be interesting to track the number of shadow market openings over time.