Rental prices skyrocket, jumping 17 percent in a year - Valley News Live - KVLY/KXJB - Fargo/Grand Forks

Rental prices skyrocket, jumping 17 percent in a year

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MOORHEAD, M.N. -- Rental prices have been creeping higher and higher in the Fargo-Moorhead Area. A study published by the Minnesota Housing Partnership found that housing has increased across the state. Kathie Kvalvog has been renting in the Fargo-Moorhead Area for 20 years. She's seen prices skyrocket, first-hand as a renter and as the president of ABC Management.

"30 years ago to 20 years ago to now, it's usually been about a five percent increase per year,” said Kathy Kvalvog. “This year I've noticed it's jumped 17 percent."

With all the new growth, it means more people flooding the area and more apartments being built. Kvalvog told us apartments here don't sit vacant for long. Typically she gets 300 plus calls a day. And, most properties sell within 24 hours after being listed.

"If you don't put your money down on the apartment it probably will be gone the next day,” Kvalvog told Valley News Live. “So, it's shocking to me, because there should be enough apartments. But, from what I can see there aren't enough apartments, because they're going so fast."

It’s supply and demand. For that reason Kvalvog said rental companies can charge more.

"Let's just raise the price $100 when someone moves out and a lot of the times we do get that amount,” said Kvalvog. “It’s not hard to rent out these apartments anymore."

But, that doesn't make it easy for people trying to simply get a roof over their head.

"For a college student maybe under $300 would be nice, but I don't think that's realistic,” said Minnesota State University of Moorhead sophomore, Samantha Ruszat.

"With so many apartments in the area, since there are so many opportunities and stuff, I think that maybe a little bit lower,” said MSUM student Shalen Anderson. “Even if it was just 25 bucks.”

But, with the way things are going, renters will undoubtedly be shelling out more green in the months to come.

Apartments near campuses in Moorhead can range anywhere from $700 to 1,500 dollars.

The Minnesota Housing Partnership study also states it's become more of a challenge for individual incomes to keep up with the increasing price of rent.

And ABC Management told us many residents have two jobs, which could be to help pay for rent.
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