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2014 Windom Housing Market Analysis. Prepared for:EDA of Windom / Windom HRA Prepared by:Viewpoint Consulting Group, Inc. Date:May 20, 2014. Viewpoint Consulting Group, Inc. 9104 Barrington Terrace Brooklyn Park, MN 55443 763-273-4303 www.viewpointconsult.com. - PowerPoint PPT Presentation
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2014 Windom Housing Market Analysis
Viewpoint Consulting Group, Inc.9104 Barrington TerraceBrooklyn Park, MN 55443763-273-4303www.viewpointconsult.com
Prepared for: EDA of Windom / Windom HRAPrepared by: Viewpoint Consulting Group, Inc.Date: May 20, 2014
Purpose: To project housing demand in Windom through 2020 and provide recommendations on the amount and type of housing that could be built to satisfy unmet needs.
Windom’s Primary Market Area
Demographic Highlights• Windom grew by 3.5% last decade and is projected to continue growing this decade,
reaching a population of 4,850 in 2020.
• Incomes in Windom are modest ($34,614 median household income in 2013 compared to $56,704 statewide).
• Windom has a high percentage of single households (36%), but renters with 3+ persons is growing fast (84 HH in 2000 and 145 HH in 2010).
• Older adults and seniors are experiencing the greatest growth, but younger persons are growing as well.
Population Added, Windom
1970s 1980s 1990s 2000sProjected
2010sPopulation +714 -383 +207 +156 +204
Demographic Highlights
Population, Windom
1980 1990 2000 2010 2020 2030
Population 4,666 4,283 4,490 4,646 4,850 4,950
Pct. Age 65+
18.3% 22.5% 21.7% 21.2% 23.8% 27.0%
Owner & Renter Households, Windom
2000 2010
Owner Households 1,444 1,415
Renter Households 466 579
Homeownership Rate 76% 71%MN Homeownership Rate 75% 73%
Demographic Highlights
• 52% of Windom’s households with incomes under $35,000 were cost burdened (spent 30%+ of gross income on housing)
0
100
200
300
400
500
600
700
800
< $25K $25K - $34K $35K - $49K $50K - $74K $75K+
Num
ber o
f Hou
seho
lds
Household Income
Renters
Owners
Distribution of Windom’s Households by Income & Tenure
Employment Highlights
Source: US Census Bureau – Local Employment Dynamics
1,159
916
2,227
Employed Persons
Live and Work in Windom
Live in Windom, WorkElsewhere
Work in Windom, LiveElsewhere
Employment Highlights
• In 2011, 65% of Windom’s jobs were filled by people living outside the community.
• Manufacturing is the largest employment sector in Windom (Toro and PM Beef).
• There is a need for more housing in Windom for local employees. Representatives of major employers state that Windom has a shortage of housing – particularly rentals and mid-priced homes to purchase ($75,000 to $150,000).
• Quality of existing rentals in Windom available to local workers was an issue raise by some major employers.
Age of Windom’s Housing Stock
0
200
400
600
800
1,000
1,200
1,400
1,600
Owned Rented
Num
ber o
f Hou
seho
lds
Year Housing Built
2000+
80s & 90s
60s & 70s
<1960
Windom Owner-OccupiedHousing Trends
• Windom’s for-sale housing market is stable (Avg. resale price of about $97,000 for four straight years).
• About 50 homes were built in Windom last decade, only one twinhome (2 units) has been built this decade.
• Windom has a very limited supply of available lots for new construction homes.
June Court
Windom High School
River Bluff Estates
Windom Owner-OccupiedHousing Trends
Source: Cottonwood County Assessor’s Office
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
<1940 1940s 1950s 1960s 1970s 1980s 1990s 2000+Year Home Built
Average Sale Price by Year Built (2012 & 2013)
Windom Rental Housing Trends
• River Bluff Townhomes is “affordable,” but is the market leader. It has monthly rents of $615/2BR and $665/3BR.
• River Bluff Townhomes were built in 2001. Windom’s other market rate housing is older than 35 years.
• Older market rate properties have average monthly rents of $475/2BR and $550/3BR.
• About half of Windom’s renters live in single-family homes & duplexes.
RiverviewApartments
River BluffTownhomes
Windom Rental Housing Trends
• 60% of Windom’s non-senior apartment units are subsidized (residents pay 30% of AGI for rent).
• Windom had a 3.7% vacancy rate among its non-senior rental housing supply.
• Windom has three senior housing with services buildings – Pineview AL, Mikkelsen Manor, and Remick Ridge Estates.
• Four Housing Choice Vouchers are being used in Windom – 15 names from Windom are on a waiting list.
Good Samaritan Society Campus
Windom Housing Demand2014 - 2020
Housing Units
Household Growth 85
Demand from outside Windom 22
Replacement Need 15
Pent-up Rental Demand 8
Total 130
Rental/Senior Housing 95 - 100 75%
Owner Housing 30 - 35 25%
Demand Sources: Household Growth – to accommodate the projected increase in population Demand from outside Windom – capturing a small percentage of commuters Replacement Need – to replace functionally obsolete units that should be demolished Pent-up Rental Demand – units needed for the rental market to achieve stabilized occupancy (95%)
Windom Housing Demand
-29 (-2.0%)
+113 (24.2%)
0
200
400
600
800
1000
1200
1400
1600
Owners Renters
Change in Tenure, 2000 to 2010
2000
2010
• 60% of Windom’s demand for new single-family homes is for entry-level prices ($155,000 - $185,000).
• 60% of Windom’s demand for new rental units is from employees with household incomes of $30,000+.
• A greater share of demand is for rental/senior housing than for owner-occupied housing.
Windom Housing Demand2014 - 2020
0
5
10
15
20
25
30
35
40
Single-FamilyHomes
For-SaleTownhomes
RentalHousing(Afford.)
RentalHousing
(Market Rate)
SeniorHousing With
Services
Num
ber o
f Uni
ts
Windom Housing RecommendationsNew Construction, 2014 - 2020
Housing TypeNumber of
Units Price/Rent Range
Affordable Rental Townhomes 28 - 30 $585/2BR / $660/3BR
Market Rate Apartments 16 - 18 $510/1BR, $635/2BR
Market Rate Rental Townhomes 12 - 14 $735/2BR, $815/3BR
Independent/Assisted Living 24 - 26 $1,600/1BR, $1,900/2BR
Memory Care Assisted Living 12 - 12 $4,800/Stu, $5,200/1BR
Single-family homes (entry-level) 12 - 14 $155,000 - $185,000
Single-family homes (move-up) 8 - 10 $200,000+
Townhomes 10 - 12 $145,000 - $160,000
Windom Housing Recommendations2014 - 2020
1. Bring new subdivisions for single-family homes and townhomes on-line by 2015
2. Add a mix of rental housing (including re-use of Homes for Creative Living building)
3. Flood Insurance Rate Map Redrawing4. Dilapidated Housing Demolition Program5. Rental Registration Program6. Continue housing rehabilitation programs7. Promote use of Housing Choice Vouchers8. Termite Mitigation