SIOUX FALLS, S.D. (KELO) — Vacancy rates for rental properties in Sioux Falls reached a new all time low this July, according to a July survey from the South Dakota Multi-Housing Association. There are just over 3 percent of all rental properties currently available in Sioux Falls.
With just two weeks until school starts, Augustana junior Henry Van Bemmel and his two roommates are finally moving into a new apartment.
“There was a deadline to be out of our current place, we probably pushed it a little too long before we started looking for new places,” Van Bemmel said.
Like many apartment hunters, they quickly realized just how hard it is to find an opening right now.
“The biggest thing we were looking for was 3 bedrooms, which unfortunately we weren’t able to find. This place is only 2 bedrooms, definitely had to lower our expectations a little bit,” Van Bemmel said.
“It was stressful, there really weren’t a lot of places available at the time either.”
“It’s a pretty tight market,” President of Bender Midwest Properties said. “As soon as a unit becomes available there’s a waiting list or people looking to fill it right away.”
The tight rental market has property managers like Lori Marsh busier than ever
“It rings non-stop, even when I’m doing showings, I get 2-3 phone calls,” Marsh said.
In her 10 years at the job, she’s never seen anything like this.
“Never, this is so unique to all of us. We’ve been full before, but we’ve never been full all the time with no one moving out.”
South Dakota Multi- Housing Association says part of the crunch for finding available rentals is tied to the mounting pressure in the real estate market.
“A lot of our people who would typically be moving out to move into a home, because of the market, they may be choosing to stay,” Marsh said.
The all around incredibly tight housing market in Sioux Falls means renters like Van Bemmell are happy to be moving in where ever they can.
Even if it means fitting three roommates into a two bedroom apartment.
The historic low vacancy rates are also bumping up rental prices– bender properties estimates about a 4 to 8 percent increase in rental prices this summer. And for those searching for affordable housing, HUD housing vacancy rates are even lower–at less than half a percent of units available.