Exploring the Economic Revitalization of Downtown Minneapolis: Part 4 of 4

Comparative Analysis of Urban Vitality: Downtown Minneapolis vs. Chicago and Milwaukee

Benchmarking Downtown Minneapolis against similar city centers can help us understand the reasons behind the city’s struggles by identifying successful practices from other cities. Conducting a comparative analysis of the various factors that impact urban vitality may illuminate causes that would otherwise remain elusive.

Economic Indicators

First, we consider economic indicators like employment rates, net changes in active businesses, and the commercial and residential real estate markets. Among the cities identified above, the greater Minneapolis area boasts one of the lowest unemployment rates.

Social and Demographic Shifts

Social and demographic shifts also significantly impact urban vitality and livability. Examining population shifts, such as the number of people living downtown and their living arrangements (rent vs. own), reveals patterns of interest. Changes in pedestrian and transportation data help paint a picture of the vitality of urban centers throughout the week.

Downtown Recovery Rates

According to a University of Toronto study that looked at mobile data usage, Minneapolis has one of the lowest recovery rates in the U.S., at just 56%.

Chicago also has a modest recovery rate of 61%. Milwaukee, on the other hand, has recovered much more, with a recovery rate of 86%. Clearly, Milwaukee is doing something right to achieve such a significant recovery.

Population Trends

Population growth in downtown areas is another key indicator. Minneapolis’s downtown population is around 56,748, which is an increase of 5,460 since 2020 (mpls downtown council). Chicago’s downtown population is approximately 244,445, making it one of the fastest-growing cities in the U.S. (The Chicago Loop’s New Demography). Milwaukee has also seen significant growth, with its population rising by about 21% since 2010, reaching around 42,000 at the start of 2024 (2024 Snapshot).

Housing Market

In Downtown Minneapolis, most residents rent their housing units. Approximately 74% of the occupied housing units are rented, while just 26% are owner-occupied. As of June 2024, the average rent in Downtown Minneapolis is $1,894 per month, compared to the national average of $1,534 per month (Rental Market Trends). In Chicago, about 55% of the housing is renter-occupied, with average rent around $3,124 per month (Rental Market Trends). Milwaukee, on the other hand, is a mix between the two cities with a lower average rent of $1,977 and a renter-occupancy rate of 59% (Rental Market Trends). Despite seemingly high rents in Downtown Minneapolis, it is doing well compared to other cities.

Downtown Recovery: Vacancy Rates for Commercial Buildings:

• Minneapolis: 18.1%

• Chicago: 23.5%

• Milwaukee: 17.7%

The Role of Twin Summit Consulting in Downtown Revitalization

Twin Summit Consulting, is deeply committed to the revitalization of downtown Minneapolis. We are focused on understanding and addressing the post-pandemic challenges that have affected the urban landscape, particularly the significant decline in foot traffic and business activity.

Leveraging our expertise in marketing and business development, we aim to propose innovative solutions that will attract businesses back to the area, stimulate economic growth, and enhance the vibrancy of downtown Minneapolis. Through our dedication and proactive approach, Twin Summit Consulting aspires to play a pivotal role in the long-term revitalization and prosperity of the city’s central business district.