FARGO (KFGO-AM) A new survey shows F-M area apartment vacancy rates have jumped for the first time in several years. The rate for the entire metro area is now 3.8%. Last year at this time it was 2.6%.
Petter Eriksmoen of Appraisal Services says favorable interest rates, more people, and plenty of land zoned for apartments has fed an unprecedented building boom. But he says the number of apartments is starting to exceed demand, and that has resulted in the "bump" in vacancies. Eriksmoen believes the metro area construction boom has peaked. There are now 2,000 units being built and another 600 units that have been permitted but not yet started.
He says the higher vacancy rate also means rents may not going up as rapidly:
The vacancy rate in Fargo is at 3.5%, 3.7% in Moorhead, 2% in Dilworth, and 6% in West Fargo. That number is higher because the number of new apartments built in west fargo is so large.