Rent relief may still be a ways off in Williston and other parts of North Dakota impacted by the influx of oil workers.
In a conference call with the Williston Herald on Wednesday, Gov. Jack Dalrymple said the state has incentives for developers to establish low-to-moderate-income housing but added the state won’t seek rent control or caps on developments receiving low-interest loans from the state.
In the proposed budget for 2013-2015, there is $12 million in funds to buy down interest rates to one percent. He said it requires a rent schedule but can go to higher income levels, which will lower the rent subsidy.
Dalrymple believes the price of rent will come down as more housing is built, getting supply to the meet the demand in the oil-impacted areas.
“It’s not a situation where something is wrong with the economy so people can’t build,” he said. “The trick is to get people to build housing faster, and it is happening, but there’s an opportunity to build housing and they want to do that, and we’re trying to increase the supply and the ease in which they get that done.”
Rent control is utilized in some states to ensure the cost on units is available for lower-income households. Many states, like North Dakota, currently have measures in place to prevent rent control, keeping the market in the hands of private businesses.