Downtown Fargo Apartments Face Elevated Vacancy Rates
FARGO, N.D. – Downtown Fargo apartments currently experience a vacancy rate nearly three times higher than the broader Fargo-Moorhead metropolitan area, according to data released on 2024/04/23.The elevated vacancy-reported at 13.7%-contrasts sharply with the metro area’s 4.6% rate, signaling a potential shift in the city’s housing market.
The disparity impacts landlords, developers, and prospective residents, raising questions about the pace of downtown growth and the absorption of new housing stock.While concerns exist, local experts suggest the situation is temporary, attributing it to a surge in new construction outpacing immediate demand. The long-term health of downtown’s residential sector remains tied to Fargo’s continued economic strength and the evolving preferences of its workforce.
According to the report, the downtown core boasts 1,448 apartment units, with 198 currently vacant. This contrasts with the metro area’s overall 6,888 units and 317 vacancies. Kilbourne Group, a significant developer in the downtown area, acknowledged the higher vacancy rates but expressed optimism about the future.
“There is steady interest in living downtown, and we’re excited for people to continue rediscovering the range of housing options here,” said Kilbourne Group representative, adding, “Our focus is on contributing to a vibrant and welcoming downtown community.”
Local economist, Erik Eriksmoen, doesn’t foresee lasting issues, citing Fargo’s robust economic position. “I think part of it is slowing the supply growth in that market and just giving it time to absorb,” he explained.”I think it really is more of waiting for demand to catch up with supply.”
The situation highlights a potential need for a recalibration of advancement pace to align with market demand, ensuring the continued vitality of downtown Fargo’s residential landscape.