Why Does Rent Increase?
Reasons for rent increases across the nation
As renters prepare for lease renewals across the nation, many have noticed changes in their rent. There are many reasons that contribute to rent increases, so we wanted to compile them in one place for our residents!
At Alliance Management Group our mission focuses on building relationships while providing an exceptional place to call home. We take pride in providing quality services, while remaining transparent with our residents. There are many factors that play into rent increases, including:
A nationwide housing shortage
People are moving out of big cities and into smaller communities. These communities are having trouble supporting the housing demand leading to a nationwide housing shortage and causing rents to increase.
Extremely low rental vacancies and unrelenting demand
Due to the housing shortage, many are resorting to renting or renewing their leases. As the pandemic nears the end, we also see many wanting to move out of their family homes and be on their own, increasing demand.
Inflation
Inflation can be caused by many factors and is affecting prices everywhere. As communities strive to build more apartments to meet the increased demand, construction costs have increased causing new buildings to be more expensive.
Overall costs of property upkeep are increasing
Along with inflation, maintenance, vendor & labor, energy & water, and insurance costs continue to rise in result to post-pandemic and economic changes. It is important for us, as Alliance Management Group, to maintain the best upkeep of our communities for our residents.
Below is an infographic from the National Apartment Association (NAA) about the breakdown of how rent is distributed among costs.
If you have any questions about why rent is increasing nationwide, please don’t hesitate to reach out to your community office!
Jade Wahl loves the kind of environment where most people would probably feel overwhelmed. “I thrive in chaos,” Jade said. “Every day brings something new.” Her career in property management started about eight years ago in Bismarck as a leasing agent before being promoted into a property manager role where she oversaw properties and the people who keep them running. Through connections from a previous job, she was introduced to Collective and shifted her focus to a different side of property management: Learning and Development Specialist. It was natural given her experience in supporting team members. "I love the relationships I get to create with each of our team members."
Tori Madilia grew up nearly 2,000 miles from Billings, but the path that brought her to Farmstead is less random than it might seem. After making the move to the Treasure State to be closer to her boyfriend, Tori got a career nudge from someone who knew her well. Her best friend back home happened to be a community manager and had a feeling she might enjoy property management. He encouraged her to give it a try. “My best friend back home thought I’d do well at it,” Tori said. “He was right. I knew from the get-go I’d be a good fit here.”
Thomas Janis has been working in maintenance for nearly 8 years, learning as he goes and picking things up from the people around him. Today, he serves as a Senior Maintenance Technician at 10Bedrock Apartments in Box Elder, South Dakota. He is a proud member of the Oglala Sioux Tribe , a revered culture known for a deep sense of responsibility to others. Spend just a few minutes around Thomas and you’ll quickly see what matters to him. “My culture is based on warriors helping the community strive,” he said. “I carry that into my work.”
Dakota Park isn’t new to Fargo. With a few thoughtful, resident-focused updates, it’s getting even better. The community first opened in 1996 and is noteworthy as one of the largest communities in Fargo, one of the first to feature underground parking, and one of the first to have an indoor pool. It’s no surprise that many residents have chosen to call Dakota Park for decades. It truly does have everything you need. It’s been a few months since we welcomed Dakota Park into the Collective portfolio, and it’s quickly become a favorite among our team. In that time, they’ve come up with some great ideas to make it even better.
Ryan Sullivan found his way into property management when opportunity and timing aligned perfectly. Like a lot of people in 2020, Ryan found himself looking for something new. His wife, knowing how good he was at fixing things, encouraged him to look into a role with Presbyterian Homes. What started as a maintenance position quickly turned into a career as he worked his way up to second in command at one of the largest senior living locations in the state of Minnesota. Today, Ryan serves as a Senior Maintenance Technician at ElseWarehouse and The Copham in Minneapolis’ North Loop.
Collective recently expanded its presence in Minneapolis’ North Loop neighborhood when it added The Copham in March. The Copham is a historic warehouse turned apartment community located on Washington Avenue just down the block from Collective’s ElseWarehous e. With its modern-meets-industrial style and a location in the heart of one of Minneapolis’ most vibrant neighborhoods, The Copham is a natural fit for the Collective portfolio.
Giving back is not treated as an afterthought at Collective. Team are encouraged to spend time away from the office for causes that matter to them personally.
Collective is pleased to announce the addition of The Copham, a 120-unit apartment community located on Washington Avenue in the North Loop neighborhood of Minneapolis, Minnesota.
Discover 55+ independent living at Whispering Creek in Fargo. Enjoy underground parking, resident-led activities, and maintenance-free living. Schedule a tour today.
Inclusion is more than a performative buzzword for Kayla Goebel. She lives it. Kayla, creative strategist for Collective/Great States, was recently nominated for YWCA’s Women of the Year for Advocating for Equality. Kayla’s story isn’t about one big moment, but a thousand small ones that quietly (and permanently) changed lives for the better. A Life Rooted in Inclusion If you only looked at Kayla’s resume, you would assume she is busy (and you would be right). You would see Creative Strategist. Shop crew member. Small business owner. Volunteer. Student. Proud mom to Aurora.
