ST. PETER, Minn. (KEYC) — In St. Peter, city leaders say there is more demand than supply for rental housing in the city.
At the same time, St. Peter City Council is tackling the future of the city’s role in the housing market.
St. Peter City Administrator Todd Prafke said the rental housing vacancy rate in the city is less than 2%.
In perspective, the city has over 1,100 rental units.
“There’s not enough time for a landlord really to paint the whole place before the next people are coming in if they have it priced appropriately for the marketplace,” Prafke said.
For the city, that means there is more demand than supply.
“There are people waiting for vacancies to open up,” Prafke said.
The current inventory for houses also sits at 42, with 20 sales last month.
This all comes as part of a discussion at a goal session Monday, where Prafke and other city council members discussed their role and participation on housing and development, whether as a bystander, facilitator, developer or a combination role.
Prafke said the city is at a cross road on its participation in the market.
“This is a point to why the city would be involved would just be because this is very much tied to what’s happening in our community businesses, wage growth, those sorts of impacts. Housing is going to be really important for us to grow,” Councilwoman Keri Johnson said.
“Maybe it’s time to really look at whether we should stay in this market or not,” Councilman Stephen C. Grams said.
Meanwhile, Prafke told KEYC News Now they have a developer interested in providing 60 more rental units in the city.