F-M Rental Market Hits the Sweet Spot
There are more rentals in the Fargo-Moorhead area than purchased homes, according to local officials.
Is the demand for rentals outpacing the supply? And can renters find a good deal?
Basically, the rental market is ideally balanced in the Valley.
But if trends continue, the supply could dry up.
A good deal apparently isn’t that hard to come by in the Valley.
NDSU student Joseph Arneson scored a pretty good deal for a room in a five bedroom house.
“$365 bucks”, he says.
Rentals in the area are significantly cheaper than the national average.
According to the website myapartmentmap.com, a one bedroom apartment costs $997 per month on average nationwide.
In Fargo, it’s just $685. In Moorhead? $556.
“The renting prices are definitely reasonable if you search for it,” Arneson adds.
The rental vacancy rate in Fargo-Moorhead is around four percent, which is right in the sweet spot.
It’s not too high where property managers are struggling to find tenants, and it’s not too low where renters can’t find a place to live.
“We saw maybe like four or five places. We contacted a lot of places,” says NDSU student Destiny Fitzpatrick.
Not all renters are college students.
A Harvard study released Wednesday says more than half of renters nationwide are over 40 years old.
It’s a trend the Fargo Housing Authority has noticed as well.
“People my age, baby boomers, are this big population bulge,” says Lynn Fundingsland with the Fargo Housing Authority. “So we’re all entering into that period where it’s maybe better not to have a house anymore, not to maintain a house.”
A Fargo housing study this year found that finding affordable rentals for the elderly is one of the biggest issues the city faces in the future.
But for now, apartments are available in the Valley, at a decent price.
Housing officials say it’s unlikely the elderly housing issue will be resolved anytime soon, with a growing population in Fargo, and a decrease of federal funds for affordable housing.