New Study Shows Increasing Demand for Housing in Fergus Falls

Projected Housing Demand in Fergus Falls, 2026-2036. (Maxfield Research & Consulting)

Fergus Falls, MN – A recent study of the Fergus Falls housing market shows a strong demand for housing at all price levels.

The Fergus Falls Housing and Redevelopment Authority enlisted Maxfield Research & Consulting in conducting a study that examines current housing market conditions and determines the market potential for developing different types of owned and rented housing in the community to 2036. At Monday night’s City Council meeting, Maxfield President Mary Bujold presented the results of the study to the council.

The study found an urgent need for moderately priced housing (both owned and rented), housing alternatives for older adults who want to move out of their single-family homes, and move-up housing to facilitate turnover in the entry-level market. Bujold projects a demand for 355 single-family homes (35/year) and 236 multi-family homes (24/year) for the next ten years.

The study also indicates Fergus Falls is a tight rental market, with only a 2.3% vacancy rate for market rate rental housing. Demand for the next ten years is projected to be 873 rental units.

For 2020-2031, the population is projected to increase 7.9%, adding 731 people. Households will increase 21.4%, at 449 households. For 2031-2036, population is projected to increase 4.4%, adding 375 people. Households increase 12.1%, at 260 households. The 75+ age group is the fastest growing, projected to increase 28.7% by 2036. The 20-24 group is expected to increase by 23.5% over the next ten years, and 45-54 is the third fastest at 19.7%.

Bujold recommended types of initiatives the Council should focus on based on the study results, which includes focusing on first-time homebuyers, the development of affordable rental housing, the development of housing to serve active and independent seniors, preservation of existing affordable housing stock, and implementing a mix of initiatives targeting different housing segments to support more balanced housing.

The study results can be seen on the Fergus Falls HRA website.