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7.1. HRASR 04-02-2018 EOty1� ,.,�� Request for Action River To Item Number Housing and Redevelopment Authority 7.1 Agenda Section Meeting Date Prepared by General Business Aril 2, 2018 Amanda Othoudt,EDD Item Description Reviewed by 2018 Housing Study Presentation Cal Portner, City Administrator Reviewed by Action Requested Hear presentation regarding the updated 2018 housing study. Background/Discussion At their November 6, 2017, meeting, the HRA authorized entering into an agreement with Maxfield Research to update our 2015 comprehensive housing study to assist in determining availability of different segments of housing in Elk River and in planning for the future of the housing market in the community. Staff will present the results of the Housing Study to the HRA. An executive summary of the analysis can be found on page two of the report. Following the presentation, the complete report will be available on the city's website. Financial Impact N/A Attachments ■ Maxfield Housing Study Update (February 15, 2018) The Elk River Vision A wehoMing community withrevolutionary and spirited resourcefulness, exceptional POWERED By service, and community engagement that encourages and inspires prosperity INAWRE1 Comprehensive Housing Market Study Updates City of Elk River, Minnesota r� Maxfield NOVResearch & Consultinc Maxfield - Research & Consulting February 15, 2018 Ms. Amanda Othoudt Economic Development Director City of Elk River 13065 Orono Parkway Elk River, MN 55330 Dear Ms. Othoudt: Attached is the Comprehensive Housing Market Study Updates for Elk River, Minnesota conducted by Maxfield Research and Consulting, LLC. The original study was completed in December 2015, with the following updates completed in February 2017. The study projects housing demand from 2017 through 2025, and provides recommendations on the amount and type of housing that could be built in Elk River to satisfy demand from current and future residents through 2025. The study identifies a potential demand for approximately 864 new housing units through 2025. About 20% of the total demand is for senior housing; while general -occupancy housing accounted for 80% of the demand. Demand is strongest for for -sale housing, representing 395 of the 864 new housing units. There is also strong demand for additional market rate (172 units) and affordable rental housing (93 units) If you have any questions or need additional information, please contact us. We have enjoyed conduct- ing this study for you. Sincerely, MAXFIELD RESEARCH AND CONSULTING, LLC e4e Matt Mullins Brian Smith Vice President Senior Associate Attachment (main) 612-338-0012 (fax) 612-904-7979 7575 Golden Valley Road, Suite 385, Golden Valley, MN 55427 www.maxfieldresearch.com TABLE OF CONTENTS Page PURPOSE AND SCOPE OF STUDY.......................................................................................... 1 DEMOGRAPHIC ANALYSIS..................................................................................................... 2 Introduction...................................................................................................................... 2 MarketArea Definition..................................................................................................... 2 Population and Household Growth Trends and Projections from 1990 to 2030 ............. 3 AgeDistribution Trends.................................................................................................... 5 Household Income by Age of Householder...................................................................... 6 Tenure by Age of Household............................................................................................. 8 HouseholdType Trends.................................................................................................... 10 Household by Household Income..................................................................................... 11 Summary of Demographic Trends.................................................................................... 12 EMPLOYMENT....................................................................................................................... 14 EmploymentTrends.......................................................................................................... 14 ResidentLabor Force........................................................................................................ 14 CoveredEmployment........................................................................................................ 16 Inflow/Outflow.................................................................................................................. 17 MajorEmployers............................................................................................................... 18 Summary of Demographic Trends.................................................................................... 18 HOUSING CHARACTERISTICS................................................................................................. 20 Residential Construction Trends 2000 to Present............................................................ 20 Housing Units by Structure and Tenure............................................................................ 21 Summary of Demographic Trends.................................................................................... 22 RENTAL MARKET ANALYSIS.................................................................................................. 23 General Occupancy Rental Projects.................................................................................. 23 Senior Housing in Elk River................................................................................................ 27 Summary of Elk River Competitive Multifamily Properties .............................................. 30 FOR -SALE HOUSING ANALYSIS.............................................................................................. 32 ResidentialResales............................................................................................................ 32 Current Supply of Homes on the Market.......................................................................... 36 LotSupply.......................................................................................................................... 39 Summary of For Sale Market Conditions.......................................................................... 41 HOUSING DEMAND ANALYSIS.............................................................................................. 43 Estimated Demand for For -Sale Housing........................................................................... 43 Estimated Demand for General Occupancy Rental Housing ............................................. 44 Estimated Demand for Independent/Few Services Senior Housing ................................. 45 Estimated Demand for Affordable and Subsidized Independent Senior Housing ............ 46 Estimated Demand for Congregate Senior Housing.......................................................... 47 Demand Estimate for Assisted Living Housing.................................................................. 48 Estimated Demand for Memory Care Housing.................................................................. 49 DEMAND SUMMARY AND HOUSING RECOMMENDATIONS............................................... 50 Demand Summary/Overall Housing Recommendations.................................................. 50 Recommended Housing Product Types............................................................................ 52 MAPS Page PrimaryMarket Area.............................................................................................................. 2 Elk River General Occupancy Rental Housing Locations....................................................... 26 Elk River Senior Housing Locations........................................................................................ 29 LIST OF TABLES Table Number and Title Page D1. Population and Household Growth Trends and Projections, Elk River, 1990 to 2030............................................................................................................................ 3 D2. Population Age Distribution, Elk River, 2000 to 2025 .................................................. 5 D3. Household Income by Age of Householder, Elk River, 2017 and 2022 ........................ 8 D4. Tenure by Age of Householder, Elk River Study Area, 2010 and 2016 ......................... 8 D5. Household Type Trends, Elk River Study Area, 2010 and 2016 .................................... 10 D6. Tenure by Household Income, Elk River, 2010 and 2016 ............................................. 11 E1. Resident Employment, Sherburne County, 2000 to 2017 ............................................ 14 E2. Covered Employment Trends, Elk River, 2000, 2005, 2010, 2016 ................................ 16 E3. Commuting Inflow/Outflow Characteristics, City of Elk River, 2015 ............................ 17 E4. Major Employers, City of Elk River, 2017...................................................................... 28 HC1. Residential Construction, City of Elk River, 2000 to 2017 ............................................ 20 HC2. Housing Stock by Units in Structure, Elk River, 2000 and 2016 .................................... 21 RMA1. General Housing Occupancy Rental Housing, City of Elk River, January 2018 .......... 23 SH1. Senior Housing, City of Elk River, January 2018........................................................... 27 FS1. Home Resales, City of Elk River, 2010-2017................................................................. 32 FS2. Single Family and Multifamily Residential Sales, City of Elk River, 45 HD4. Affordable Independent Senior Housing Demand, Elk River, 2017 and 2022 .............. 2000 through 2017....................................................................................................... 33 FS3. Home Resales by Sales Price & Product Type, City of Elk River, 2017 .......................... 34 FS4. Housing Sales Per Square Foot (PSF), Elk River, 2005 to 2017 ..................................... 35 FS5. Homes Currently Listed For -Sale, City of Elk River, February 2018 .............................. 36 FS6. Active Listings by Housing Type, Elk River, February 2018 ........................................... 37 FS7. Subdivision & Lot Inventory- Detached Housing Units, City of Elk River, 4t" Quarter 2017........................................................................................................... 39 FS8. Subdivision & Lot Inventory - Attached Housing Units, City of Elk River, 4t" Quarter 2017........................................................................................................... 40 HDI. For -Sale Housing Demand, Elk River, 2017 to 2025 ..................................................... 43 HD2. Rental Housing Demand, Elk River, 2017 to 2025 ........................................................ 44 HD3. Market Rate Active Adult/Few Services Housing Demand, Elk River, 2017 and 2022. 45 HD4. Affordable Independent Senior Housing Demand, Elk River, 2017 and 2022 .............. 46 HD5. Subsidized Independent Senior Housing Demand, Elk River, 2017 and 2022 .............. 46 HD6. Market Rate Congregate Rental Housing Demand, Elk River, 2017 and 2022 ............. 47 HD7. Market Rate Assisted Living Demand, Elk River Market Area, 2017 and 2022 ............ 48 HD8. Memory Care Demand, Elk River Market Area, 2017 and 2022 .................................. 49 CRI. Summary of Housing Demand, City of Elk River, February 2017.................................. 50 CR2. Recommended Housing Development, City of Elk River, 2017 to 2025 ...................... 52 PURPOSE AND SCOPE OF STUDY Purpose and Scope of Study Maxfield Research and Consulting LLC (i.e. "Maxfield Research") was engaged by the City of Elk River to complete an update of the Comprehensive Housing Market Study for the City of Elk River from 2015. This report includes an update only to select tables and is intended to act as an addendum to the original document. MAXFIELD RESEARCH AND CONSULTING DEMOGRAPHIC ANALYSIS Introduction This section of the report examines factors related to the current and future demand for both owner- and renter -occupied housing in Elk River, Minnesota. It includes population and house- hold growth trends and projections, projected age distribution, household income and house- hold types. A review of these characteristics will provide insight into the demand for various types of housing in the Market Area. Elk River Study Area Definition The draw area for determining current and future housing demand in the City of Elk River is based on traffic pattern orientation, proximity to other communities, interviews with local offi- cials and community stakeholders, natural and manmade geographic barriers, and our knowledge of the draw areas for housing. The Study Area is defined as Elk River proper. I -... 3tft� SSd.4t NE Pie.e Pslk o.tl IT NE bMSINP� ,1p fiObr SI NE �lnti MAXFIELD RESEARCH AND CONSULTING I N.— L.F. Rd Nn Elk River Nowthen vw�y al.d Nw z X11 81 it Ar. NW 17"L 1731d Ar. N W �-, YOIM1 StNEv� A.— P_ utumnPz toan •,.. nw `o m �w � 3c Ip1�91 NE n A�p.e Ur NW i ? Ir I Ramsey I � trc g\NE 2 MI to z J H z O v 0 z a x v a W W W LL x a 2 Ln N O N v O ai N fli 'y L^ u1 o N v N N N 01 O N Iq V1 N '"4 n M M I< M �,o W M ^ a O M R pip N C L 0 N U M O n a to O O O N 06 M N N M ti c %R io O m W Ln�mvi N N H Z N YO O O ^ M00 � T M N N rj M ei M R 00 14 N N W_ O a tooo 0 v O^ �o io ()o 00 N ^ m a N 01 CF M M U1 H N H W d'p y W W N Co O oo 2 O N N fn O SD N M W o i N o1 [I' r M Lr)ui J yO CD C7 Y O U J J cnJ W cn p1'O ami 10 O 00 M In M " r,4 Lr)O rn H 6 o 2 W OJ M N 11 O M M O �+ •Q o1 H M U1 N D O a c 0 2 � Z O E h OJ F g vi W D v M O n (3)o 00 H ;� d 01 d ^ O N R N 00 N h M OM R v c Ln N v rn � Lu on `� c to ` q W N m a N O n N rj 00 M tvj M v c �F �,o H N c v z u G U y 8cu � N O a, L � O U O L p U p� Z3 s v? DEMOGRAPHIC ANALYSIS 30,000 25,000 20,000 c 0 15,000 3 010,000 5,000 Elk River Population Trends 1990-2020 ❑ 1990 ❑ 2000 ❑ 2010 ❑ 2017 ❑ 2022 ❑ 2025 ■ 2030 Elk River Study Area Household Trends 1990-2020 12,000 10,000 8,000 8,617 9,005 9,298 9,704 8,080 6,000 5,664 = 4,000 3,732 2,000 0 ❑ 1990 ❑ 2000 ❑ 2010 ❑ 2017 ❑ 2022 ❑ 2025 ❑ 2030 MAXFIELD RESEARCH AND CONSULTING 4 DEMOGRAPHIC ANALYSIS 0 0 v CL 0 0 z 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Adult Population Age Distribution Elk River 2000 to 2025 -------------------- -ui ...... ._ _ ___ ................. _______ N w 00r ........ Lm ...... ......... N _. Mm in m �c n -rn m -M I, 01 I •ti 18-24 25-44 45-64 65+ Age Cohort 2000 2010 2017 ■ 2022 ■ 2025 MAXFIELD RESEARCH AND CONSULTING 5 TABLE D-2 POPULATION AGE DISTRIBUTION ELK RIVER 2000-2025 Number of Persons Change iii2000-2010 No. 5,146 No. 6,555 No. 6,642 No. 6,827 No. 6,919 N 2010-2025 No. Pct. No. 1,409 27.4 364 Pct. 5.6 17 &under 18-24 1,395 1,757 1,999 1,887 1,966 362 25.9 209 11.9 25-34 2,461 3,204 3,412 3,609 3,590 743 30.2 386 12.1 35-44 3,117 3,584 3,470 3,824 3,931 467 15.0 347 9.7 45-54 1,963 3,535 3,489 3,255 3,171 1,572 80.1 -364 -10.3 55-64 1,049 2,192 2,745 2,907 2,830 1,143 109.0 638 29.1 65-74 663 1,188 1,655 1,984 2,306 525 79.2 1,118 94.1 75+ 653 959 1,071 1,268 1,494 306 46.9 535 55.8 Total 16,447 22,974 24,484 25,561 26,2081 1 6,527 39.7 2,587 11.3 Sources: U.S. Census Bureau; ESRI, Inc.; Maxfield Research & Consulting, LLC 0 0 v CL 0 0 z 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Adult Population Age Distribution Elk River 2000 to 2025 -------------------- -ui ...... ._ _ ___ ................. _______ N w 00r ........ Lm ...... ......... N _. Mm in m �c n -rn m -M I, 01 I •ti 18-24 25-44 45-64 65+ Age Cohort 2000 2010 2017 ■ 2022 ■ 2025 MAXFIELD RESEARCH AND CONSULTING 5 DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING TABLE D-3 HOUSEHOLD INCOME BY AGE OF HOUSEHOLDER ELK RIVER (Number of Households) 2017 and 2022 2017 Less than $15,000 338 17 37 33 31 56 73 91 $15,000 to $24,999 498 21 52 51 54 64 113 143 $25,000 to $34,999 521 28 92 68 58 89 83 103 $35,000 to $49,999 969 35 187 138 147 174 131 156 $50,000 to $74,999 1,703 70 369 300 321 272 222 148 $75,000 to $99,999 1,535 38 302 363 361 283 158 29 $100,000 or more 3,053 38 448 800 912 577 230 47 Total 8,617 247 1,488 1,754 1,884 1,516 1,011 717 <$25,000 836 38 89 84 85 120 186 234 $35,000+ 7,259 181 1,307 1,602 1,741 1,307 741 380 Median Income $78,428 $55,477 $75,365 $93,219 $97,202 $82,185 $59,223 $36,403 Twin Cities Med. Income $67,795 $34,820 $58,146 $81,972 $88,167 $80,649 $58,179 $37,464 2022 Less than $15,000 363 17 39 36 30 53 83 105 $15,000 to $24,999 502 19 49 48 40 60 120 166 $25,000 to $34,999 497 25 83 66 45 78 86 114 $35,000 to $49,999 906 33 166 123 115 155 139 175 $50,000 to $74,999 1,533 60 331 273 239 234 229 167 $75,000 to $99,999 1,501 39 301 362 305 273 185 36 $100,000 or more 3,702 44 573 993 950 719 342 81 Total 9,005 237 1,542 1,901 1,724 1,572 1,184 844 <$25,000 865 36 88 84 70 113 203 271 $35,000+ 7,643 176 1,371 1,751 1,609 1,381 895 459 Median Income $84,758 $57,518 $81,690 $101,749 $104,816 $92,345 $65,812 $37,255 Twin Cities Med. Income $78,703 $37,641 $68,180 $92,464 $99,756 $93,254 $69,137 $42,675 Change Less than $15,000 25 -0 2 3 -1 -3 10 14 $15,000 to $24,999 4 -2 -3 -3 -14 -4 7 23 $25,000 to $34,999 -24 -3 -9 -2 -13 -11 3 11 $35,000 to $49,999 -62 -2 -21 -15 -32 -19 8 19 $50,000 to $74,999 -170 -10 -38 -27 -82 -38 7 19 $75,000 to $99,999 -34 1 -1 -1 -56 -10 27 7 $100,000 or more 650 6 125 193 39 142 112 34 Total 388 -10 54 147 -160 56 174 127 <$25,000 29 -2 -1 -0 -15 -7 17 37 $35,000+ 384 -5 64 149 -132 74 154 79 Median Income $6,330 $2,041 $6,325 $8,530 $7,614 $10,160 $6,589 $852 Twin Cities Med. Income $10,908 $2,821 $10,034 $10,492 $11,589 $12,605 $10,958 $5,211 Sources: ESRI, Inc.; Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING DEMOGRAPHIC ANALYSIS Growth and Income Trends by Age of Householder Elk River 2017 to 2022 2,000 $100,000 1,800 —._._. ....... 1,600 ------------- "3-,2 1,400 •—•—•—•— o U $ 9,223 c $60,000 m $75,3 v v '4 H,43 0 1,200 •—•—•—•— 1,000 •— — 0 = 800 o $55,477— — Z 600 •—•—•—•— — 400 — — — 200 — N N M N 0 2 15-24 25-34 35-44 45-54 55-64 Age of Householder $120,000 ®2017 O 2022 --b-2017 Income $100,000 2,185._._._._._. $80,000 _ — — o U $ 9,223 c $60,000 m _ C 00 v v '4 H,43 $40,000 0 65-74 75+ $0 0 N MAXFIELD RESEARCH AND CONSULTING 7 00 l7 z H r� z O v 0 z a x v a W H W 0 J W LL x a 2 Y C O LD N O W 111 N. • O I� 00 W N 3 O � � � � Y p � M m N t -i � N 00 N o N n 00 c m 3 O 0 � 0 � w m N 3 a) 00 c)) CD o O rl LD v m Ln 00 m a • rn m � I� 00 Q^1 n O 00 c -I N N W 3 r -I O rl oQ x W W OC v 6 • In Q tD O C ci ci lD a -I o t O1 r -I Ln N rI LLp • O ti O COLu O Ln = O — 00 — QW1 rq 00 ON Q () LU O3 H Q i o v O lD cI LD cI } w N Q 00 Y W W O W I, N 00 N o F- • [} D lD C 00 00 00 Ln ri 3 N Lf) N c -I c -I U Y ^ J J O M Q1 rl C U) m o .— Y • O N O p C N 1p Q1 Np I� M O M N O cM-I `� U 03 cI cI 06 t Y O cr N ^ Ln Ln cI Om10 o u N N O1 N O N I� 3 M o "Zt Oru M X c a, N N U W Y 3 W z 3 n v p 0 O � v U a CJ a N 00 l7 z H r� z O v 0 z a x v a W H W 0 J W LL x a 2 DEMOGRAPHIC ANALYSIS Elk River Renters by Age of Householder - 2016 600 90% Elk River No. of Ren' 500 Homeowners by Age of Householder - 2016 60% Q.) 1,800 87.9% 100% 50% 1,600 82.4% 80.0° 77 9/ 90% 400 i 1,400 68.0% 0 80% = 411 3 2/ 70% c 1,200 1,644 1,189 60% s a, 1,000 132 1,288 32.0 ° 1= 50% a, 0 800 = 40% 3 0 600 719 30% • 17.6° 32.1% ONo. of Homeowners 2P.05 E z 400 401 20% =0 200 Homeownership Rate 34 10% 100 0 0% NN 6N �5k 15 �02� 25 to 3$'Qo R5 NJ05� 551Q0 65 t0� Age of Householder Elk River Renters by Age of Householder - 2016 MAXFIELD RESEARCH AND CONSULTING 9 600 90% 80% No. of Ren' 500 533 60% Q.) c 50% • -Pct. Rentei 400 • a 20% 337 411 c 0% 1 Cyr o°Jc 300 32.0 ° 0 275 0 z 200 • 17.6° 2P.05 X2,1 ° 9' 100 • 72 0 2� 3� NN ro tis,'o "o 35 to N5 to 5510 r t0 Age of Householder MAXFIELD RESEARCH AND CONSULTING 9 100% 90% 80% 70% 60% Q.) c 50% • 40% 30% a 20% 233 10% 0% 1 Cyr MAXFIELD RESEARCH AND CONSULTING 9 0 z J H z 0 v 0 z a x v a W w J W LL x a 2 m 0 Lq 0 vi ul op O Ln 0 0 0 rI z O N --j T l0 v1 O 0 0'1 a.:1 H m LL • O tD p N N O M zl M N nj O 'P M O N N N M z N N 0 w 00 U el H r -I u1 w OC O • Lu H> m O n tD m 0 m Y T — N � ifj zl j O H W f0 W N � LL C a0i 00 W 0 0 z N ri al u x J O a"1 00 G 61 C p N In rn O U co l0 M O v � i . o N 00 O O � O ^ N v O N O C O z x � O � � o O t N Oo U t ^ o = o OGJ0 _ in U o C m L :3 U vOi 0 z J H z 0 v 0 z a x v a W w J W LL x a 2 DEMOGRAPHIC ANALYSIS Less than $5,000 $5,000 to $9,999 $10,000 to $14,999 $15,000 to $19,999 $20,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $149,999 $150,000 or more Total _ TABLE D-6 TENURE BY HOUSEHOLD INCOME ELK RIVER 2010 and 2016 2010* Own Rent No. Pct. No. Pct. 22 37.3 37 62.7 37 41.1 53 58.9 162 63.5 93 36.5 205 63.3 119 36.7 110 45.3 133 54.7 248 57.9 180 42.1 762 78.7 206 21.3 1,395 80.8 331 19.2 1,338 95.1 69 4.9 1,686 97.7 39 2.3 673 91.7 61 8.3 1,306 16.4 6,653 83.6 * Data is from US Census, American Community Survey (5 -Year Estimate) Source: US Census Bureau; Maxfield Research & Consulting, LLC. 2016* Own Rent No. Pct. No. Pct. 156 67.2 76 32.8 29 46.8 33 53.2 74 52.5 67 47.5 62 57.9 45 42.1 92 31.6 199 68.4 393 56.1 308 43.9 377 44.0 480 56.0 1,094 75.9 348 24.1 1,153 89.5 135 10.5 2,073 93.4 146 6.6 984 95.8 43 4.2 r 1,960 23.4 6,407 76.6 MAXFIELD RESEARCH AND CONSULTING 11 DEMOGRAPHIC ANALYSIS Summary of Demographic Trends Population and Household Projections • Between 2010 and 2017, the Elk River population and households are estimated to have in- creased by 6.6% (1,510 people and 537 households), while Sherburne County and Wright County's populations grew by 5.7% and 8.1%, respectively. Population in the City of Elk River is projected to increase by 4.4% (1,077 people) from 2017 to 2022 and forecast to grow 7.0% (1,724) through 2025. Overall, Elk River's population is forecast to gain over 3,230 people (14%) from 2010 to 2025. Age Distribution Trends Between 2010 and 2025, the growth of the older age cohorts will continue in Elk River, those age 65 to 74 will experience the largest growth, growing 94% (1,118 people). All other age cohorts will experience a decline in population or experience nominal growth. • The 65 to 74 and 75 to 84 age cohorts will experience the largest growth (19.9% and 18.4% respectively) in the PMA between 2017 and 2022. The population 18 to 24 and 45 to 54 are projected to decline from 2017 to 2022 by 5.6% and 6.7%, respectively. All other age co- horts are expected to experience moderate growth in population. Household Income by Age of Householder The Department of Housing and Urban Development defines affordable housing costs as 30% of a household's adjusted gross income. For example, a household in Elk River with the median income of $78,428 per year would be able to afford a monthly housing cost of about $1,956. A generally accepted standard for affordable owner -occupied housing is that a typical household can afford to pay 3.0 to 3.5 times their annual income on a single-family home. Thus, a $78,428 income would translate to an affordable single-family home of $235,284 to $273,868. The higher end of this range assumes that the person has adequate funds for down payment and closing costs, but also does not include savings or equity in an existing home which would allow them to purchase a higher priced home. With a household income of $55,477, a younger household in Elk River (the median house- hold income for the 25 and under cohort) could afford a monthly housing cost of about $1,386 based on an allocation of 30% of income toward housing. A senior household (75+) in Elk River with an income of $36,403 (the median household income of seniors (75+) could afford a monthly housing cost of $1,213, based on an allocation of 40% of income toward housing. MAXFIELD RESEARCH AND CONSULTING 12 DEMOGRAPHIC ANALYSIS Tenure by Household Income A portion of renter households are referred to as lifestyle renters, or those who are finan- cially -able to own but choose to rent, have household incomes above $50,000. These life- style renters account for approximately 34% of the renters in Elk River renters in 2016. Households with incomes below $15,000 are typically a market for deep subsidy rental housing. In 2016, this was about 13% of renters in Elk River. Households with incomes ranging from roughly $25,000 to $50,000 are candidates for affordable rental properties and account for 40% of the renters in 2016. Tenure by Age of Householder • The number of owner households in Elk River is estimated to have decreased from 80.2% in 2010 to 76.6% in 2016. As households progress through their life cycle, housing needs change. The proportion of renter households decreases significantly as households' age out of their young -adult years. However, by the time households reach their senior years, rental housing often be- comes a more viable option than homeownership, reducing the responsibility of mainte- nance and the financial commitment. In the City of Elk River, homeowner households reached a high of 87.9% in the 65-74 age cohort in 2016. Homeownership then begins to fall, dropping to 63.2% for those 75 and older in 2016. Household Type • In Elk River, married without children family households comprise the largest share of households at 33.5% of household. This is followed by married with children at 27.2% and persons living alone at 19%. MAXFIELD RESEARCH AND CONSULTING 13 EMPLOYMENT Employment Trends MAXFIELD RESEARCH AND CONSULTING 14 TABLE E-1 RESIDENT EMPLOYMENT (ANNUAL AVERAGE) SHERBURNE COUNTY 2000 to 2017 Total Minnesota U.S. Labor Total Total Unemployment Unemployment Unemployment Year Force Employed Unemployed Rate Rate Rate 2000 37,904 36,748 1,156 3.0% 3.2% 4.0% 2001 39,496 38,001 1,495 3.8% 3.8% 4.7% 2002 41,524 39,552 1,972 4.7% 4.5% 5.8% 2003 43,310 41,090 2,220 T 5.1% 4.9% 6.0% 2004 45,025 42,780 2,245 5.0% 4.7% 5.6% 2005 46,529 44,513 2,016 4.3% 1 4.1% L 5.1% 2006 48,064 45,991 2,073 4.3% 4.0% 4.6% 2007 48,738 46,299 2,439 5.0% T 4.6% 4.6% 2008 49,592 46,531 3,061 6.2% 5.4% 5.8% 2009 49,293 44,821 4,472 9.1% 7.8% 9.3% 2010 48,990 44,867 4,123 8.4% 7.4% 9.6% 2011 48,840 45,355 3,485 7.1% 6.5% 8.9% 2012 48,756 45,754 3,002 6.2% 5.6% 8.1% 2013 48,909 46,309 2,600 5.3% 4.9% 7.4% 2014 49,186 47,001 2,185 4.4% 4.1% 6.2% 2015 49,759 47,646 2,113 4.2% 3.9% 5.5% 2016 49,647 47,592 2,055 4.1% 3.8% 4.9% 2017 50,681 48,710 1,971 3.9% 3.6% 4.4% Change 2000-10 11,086 8,119 2,967 5.4% 4.2% 5.6% Change 2011-17 1,841 3,355 -1,514 -3.2% -2.9% -3.3% Sources: Minnesota Workforce Center; Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 14 EMPLOYMENT UNEMPLOYMENT RATE SHERBURNECOUNTY 2000 to 2017 10.0% 9.6% Sherburne 9_1% • Minnesota 8.0% —•—•—•—•—•— —. —. .— .—.—.—.—.—.—.—.—. v _ U.S. a+ 7.0% •—•—•—•—•—• •-7- .8 — — — — — — — — — 6.0% v6.0% — —•—•— — •—•—•—•—•—•—•—•——•—•—•—•—• — — —•—•-- E 5.1% E4.9% .9 4.0% 3.2%°— —.—.—.—.—. —.—.—.— —.—._. ■ 4.0% 2.0 00 Oy OL O'� O� 05 00 01 Q4b 00 1y 1 �y titi y'� yo y5 ti0 til .ti0 ,LO ,10 ,ti0 ,LO ,LO ,ti0 ,LO ,LO ,LO ,LO ,10 ,y0 ,ti0 ,LO ,y0 .10 .10 Year LABOR FORCE AND EMPLOYED RESIDENTS SHERBURNE COUNTY 2000 to 2017 52,500 49,592 50,681 50,000 —. _.—.—.—. — — ——•—•—•—•—•—•— — — — — - 47,500 -•—•—•—•—•— —•—•—•—•—•—•—•—•—•—•—•—•—•— 4$,T. 0 45,000 ----- ----' 46 33' ----------_ Ln L a42,500 •—•—•— — •—•—•—•—•—•—•—•—•—•—•—•—•—•—•—•—•—•—•—•—•—•—•- 0 Z40,000 -37,904—, ............ ••—•—• ... Total Labor Force —'- 37,500 — — — Total Employed 36,748 35,000 ,LO00 L001 L(36 361 p'311 Lpd5 300 LOOT LOO$ LOO" LOBO 3'SN LptiL LOti'' LOtif� LOtiS LOti'' 3 0 Year MAXFIELD RESEARCH AND CONSULTING 15 EMPLOYMENT TABLE E-2 COVERED EMPLOYMENT TRENDS ELK RIVER 2000, 2005, 2010, and 2016 North American Industrial Classification System (NAICS) Change 2000-2014 Average Number of Emp loyees ' , of total Industry 2000 2005 2010 2016 No. Pct. 2000 2005 2010 2014 Natural Resources & Mining 64 139 91 117 53 82.8 0.7% 1.3% 0.8% 1.0% Construction 544 754 389 664 120 22.1 6.1% 7.3% 3.6% 5.7% Manufacturing 1,202 1,073 1,243 1,500 298 24.8 13.6% 10.4% 11.4% 12.9% Trade, Transportation, and Utilities 2,470 3,004 2,602 2,854 384 15.5 27.9% 29.2% 23.8% 24.6% Information 108 63 55 66 -42 -38.9 1.2% 0.6% 0.5% 0.6% Financial Services 373 476 394 332 -41 -11.0 4.2% 4.6% 3.6% 2.9% Professional and Business Services 900 735 881 1,316 416 46.2 10.1% 7.1% 8.0% 11.3% Education and Health Services 1,367 1,802 3,031 2,318 951 69.6 15.4% 17.5% 27.7% 20.0% Leisure and Hospitality 889 1,102 842 1,055 166 18.7 10.0% 10.7% 7.7% 9.1% Other Services 380 424 543 495 115 30.34.30 4.1% 5.0% 4.3% Public Administration 570 726 875 884 1 314 55.1 6.4% 7.0% 8.0% 7.6% Totals 8,867 10,298 10,946 11,601 2,734 30.8 100% 100% 100% 100% Source: Minnesota Workforce Center; Maxfield Research & Consulting, LLC 13,000 12,000 11,000 W W L U 10,000 46 0 d Z 9,000 8,000 Covered Employment Trends Elk River 2000 through 2016 r- 11,601 ----------------------- .-tO,-29.8.------- .-.-.-.------- ._.-.-.-.-.-.-.-.-.-. 8,867 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year MAXFIELD RESEARCH AND CONSULTING 16 EMPLOYMENT City of Elk River: Inflow/Outflow r' 'r Now1hen i Elk Ri,ei TYr i I� 9,48+1 10,454 T .. . ,o 2299 - Sao MAXFIELD RESEARCH AND CONSULTING 17 TABLE E-3 COMMUTING INFLOW/OUTFLOW CHARACTERISTICS CITY OF ELK RIVER 2015 City Total 10,454 100.0% 9,481 100.0% 2,299 100.0% By Age Workers Aged 29 or younger 2,324 22.2% 2,393 2S.2% 60S 26.3% Workers Aged 30 to S4 6,316 60.4% 5,204 S4.9% 1,151 S0.1% Workers Aged SS or older 1,814 17.4% 1,884 19.9% S43 23.6% By Monthly Wage Workers Earning $1,250 per month or less 2,088 20.0% 2,768 29.2% 931 40.S% Workers Earning $1,251 to $3,333 per month 2,623 2S.1% 2,875 30.3% 681 29.6% Workers Earning More than $3,333 per month 5,743 S4.9% 3,838 40.S% 687 29.9% By Industry "Goods Producing" 2,312 22.1% 1,933 20.4% 310 13.S% "Trade, Transportation, and Utilities" 2,279 21.8% 1,835 19.4% 482 21.0% "All Other Services" 5,863 S6.1% 5,713 60.3% 1,50765.6% Sources: US Census Bureau Local Employment Dynamics; Maxfield Research and Consulting, LLC City of Elk River: Inflow/Outflow r' 'r Now1hen i Elk Ri,ei TYr i I� 9,48+1 10,454 T .. . ,o 2299 - Sao MAXFIELD RESEARCH AND CONSULTING 17 EMPLOYMENT Summary of Employment Trends Resident Labor Force • Resident employment in Sherburne County increased by approximately 12,780 people be- tween 2000 and 2017 (33.7%). • The unemployment rate was in 2017 was 3.9% in Sherburne County compared to 3.6% in Minnesota and 4.4% in U.S. The unemployment rate in Elk River has been steadily declining since its high in 2009 of 9.1%. Covered Employment by Industry • The average number of employees rose 30.8% (2,734) between 2000 and 2016 in Elk River. In Elk River, Trade, Transportation, and Utilities accounted for the largest proportion of em- ployment, making up 25% of employment by industry in 2016. Education and Health Ser- vices has the next highest concentration of employees at 20%. MAXFIELD RESEARCH AND CONSULTING 18 TABLE E-4 MAJOR EMPLOYERS CITY OF ELK RIVER 2017 Employer Products/Services Employee Count ISD #728 Education 1,125 Sherburne County Government 595 Cretex Companies, Inc. Precast Concrete Products 550 Wal-Mart Retail Store 354 Coborn's Grocery Store 265 Great River Energy Electric Utility 250 Elk River Nursing Home Nursing Care 240 Guardian Angels of Elk River, Inc Nursing Care/Housing 200 The Home Depot Retail Store 200 Sportech, Inc Plastics Thermoforming 185 City of Elk River Government 183 Tescom Corporation Pressure Control Devices 173 Menards Retail Store 150 First National Financial Services Financial Institution 142 Avalon Home Care Home Health Care 110 E & O Tool and Plastics, Inc Injection Molding 110 The Bank of Elk River Financial Institution 107 Metal Craft Machine & Engineering Precision Machining 105 Cub Foods Grocery Store 100 Total 5,144 Sources: Sherburne County; City of Elk River; Maxfield Research & Consulting, LLC Summary of Employment Trends Resident Labor Force • Resident employment in Sherburne County increased by approximately 12,780 people be- tween 2000 and 2017 (33.7%). • The unemployment rate was in 2017 was 3.9% in Sherburne County compared to 3.6% in Minnesota and 4.4% in U.S. The unemployment rate in Elk River has been steadily declining since its high in 2009 of 9.1%. Covered Employment by Industry • The average number of employees rose 30.8% (2,734) between 2000 and 2016 in Elk River. In Elk River, Trade, Transportation, and Utilities accounted for the largest proportion of em- ployment, making up 25% of employment by industry in 2016. Education and Health Ser- vices has the next highest concentration of employees at 20%. MAXFIELD RESEARCH AND CONSULTING 18 EMPLOYMENT • All but the Information and Financial Services sectors increased the number of employees since 2000. The information sector decreased by 42 employees (39%) and the Financial Ser- vices sector declined by 41 employees (11%). • The Education and Health Services sector experienced the largest gain in employees of 951 (70%) followed by the Professional and Business Services sector growing by 416 employees (46%). Inflow/Outflow • Table E-3 on page 18 provides a summary of the inflow and outflow of workers in the City of Elk River. Outflow reflects the number of workers living in the City of Elk River, or the Mar- ket Area, but working in an area other than where they live, while inflow measures the number of workers that are employed in the City of Elk River, or the Market Area, but live outside those areas. Interior flow reflects the number of workers that both live and work in the City of Elk River and live and work in the Market Area. MAXFIELD RESEARCH AND CONSULTING 19 HOUSING CHARACTERISTICS Housing Characteristics Residential New Construction (Total Units) Elk River 2000-2017 350 300 285 a 300 — - . —...— — ■Single -Family v N ■Town/Twinhomes 250 22 235.—.—.—.—.—.—.—.—.—.—. 194 95 ■Multi-family3+Units E 200 172 162 .—.—.—.—.—._ _.—.—.—.—...- a 145150 - 150 9 04 .......................113 100 86 76 ............ 82-656%...n 53 50 12 32 rr. 36 2 16 15 11 0 4 *= 0p 13 LppO Lppti Lpp" Lppb LQpO Lppb LpprO Lpp, Lpp" Lpp� Lp113 L&11 Lptiti Lp13 Lp,� Lp�S L&10 Lpti� Year MAXFIELD RESEARCH AND CONSULTING 20 TABLE HC -1 RESIDENTIAL CONSTRUCTION CITY OF ELK RIVER ANNUAL BUILDING PERMITS ISSUED 2000 to 2017 Single -Family Permits Issued Townhome/ Multifamily Total Housing Homes Twinhome 3+ Units Units 2000 172 26 86 284 2001 162 18 76 256 2002 194 18 32 244 2003 285 37 228 550 2004 300 12 235 547 2005 195 4 145 344 2006 150 2 98 250 2007 104 0 12 116 2008 25 0 0 25 2009 16 0 4 20 2010 15 0 53 68 2011 11 0 0 11 2012 36 0 0 36 2013 82 0 0 82 2014 68 3 68 139 2015 62 0 0 62 2016 73 2 0 75 2017 113 0 0 113 Total '00 to 10 1,618 117 969 2,704 Total 11' to 17 445 5 68 518 Sources: City of Elk River; Maxfield Research & Consulting, LLC Residential New Construction (Total Units) Elk River 2000-2017 350 300 285 a 300 — - . —...— — ■Single -Family v N ■Town/Twinhomes 250 22 235.—.—.—.—.—.—.—.—.—.—. 194 95 ■Multi-family3+Units E 200 172 162 .—.—.—.—.—._ _.—.—.—.—...- a 145150 - 150 9 04 .......................113 100 86 76 ............ 82-656%...n 53 50 12 32 rr. 36 2 16 15 11 0 4 *= 0p 13 LppO Lppti Lpp" Lppb LQpO Lppb LpprO Lpp, Lpp" Lpp� Lp113 L&11 Lptiti Lp13 Lp,� Lp�S L&10 Lpti� Year MAXFIELD RESEARCH AND CONSULTING 20 HOUSING CHARACTERISTICS TABLE HC -2 HOUSING STOCK BY UNITS IN STRUCTURE ELK RIVER 2010 and 2016 No Pct.715,401- Owneroccupied: 6,653 100.0 1, detached 5,445 81.8 1, attached 1,115 16.8 546 8.5 2 to 4 units 45 0.7 66 1.0 5 -to 9-plex 0 0.0 0 0.0 10 to 19 units 0 0.0 33 0.5 20 to 49 units 0 0.0 0 0.0 50+units 33 0.5 65 1.0 Mobile home 15 0.2 0 0.0 Renter occupied: 1,306 100.0 1,960 100.0 1, detached 242 18.5 497 25.4 1, attached 126 9.6 448 22.9 2 to 4 units 88 6.7 116 5.9 5- to 9-plex 134 10.3 75 3.8 10 to 19 units 247 18.9 357 18.2 20 to 49 units 296 22.7 367 18.7 50+units 160 12.3 100 5.1 Mobile home 13 1.0 0 0.0 Total occupied: 7,959 100.0 8,367 100.0 1, detached 5,687 71.5 6,194 74.0 1, attached 1,241 15.6 994 11.9 2 to 4 units 133 1.7 182 2.2 5- to 9-plex 134 1.7 75 0.9 10 to 19 units 247 3.1 390 4.7 20 to 49 units 296 3.7 367 4.4 50+units 193 2.4 165 2.0 Mobile home 28 0.41 0 0.0 * Data is from US Census, American Community Survey (5 -Year Estimate) Sources: US Census Bureau, Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 21 HOUSING CHARACTERISTICS Summary of Housing Characteristics Residential Construction Trends 2000 to Present Maxfield Research obtained data from the City of Elk River on the number of building permits issued for new housing units in Elk River from 2000 to 2017. Table HC -1 on page 20 displays permits issued for single-family and multifamily dwellings. Multifamily units usually include both for -sale (condominium, twinhomes, and townhomes) and rental projects. The following are key points about housing development since 2000. • In 2017, the City of Elk River permitted 113 residential units, the most residential units per- mitted in a single year since prior to the onset of the Great Recession. • On average, the City of Elk River permits 90 single-family units, 6.5 townhome/twinhome units, and 54 multi -family units per year since 2000. • From 2008 to 2016, Elk River averaged only 43 single-family units, less than 1 town- home/twinhome units, and 14 multifamily units per year. • Since 2013, there has been 398 single family units, five townhome units and 68 multifamily rental units permitted. This is an average of 80 single family units and 94 units overall over the five year period. Housing Units by Structure and Occupancy or (Housing Stock by Structure Type) • The dominant housing type in the Market Area is the single-family detached home, repre- senting an estimated 89% of all owner -occupied housing units and 25% of renter -occupied housing units as of 2016. MAXFIELD RESEARCH AND CONSULTING 22 J Q z Q W Y Q Q z W�/ w M N z F— J z O U O z a v a W LAw O W LLX a 2 v � v Y o 3 s c L X C' U N O m 7 O 01 mw of O •p 3 O r6 3 c Y ryc > v m °° @ c > o m K v c m Q) p m .-I c m v m a Q O 0) fl- u j E O N U 00 E a C 00 '6 ft0 Y C O i5C C= C C d 3 v do L o m m c o v v c 0 E m> m o V > 'O h �"� U_ u ' 0] X_ 3 C m v m c m o0 0 ._ n m LL m 3 L E m c t 0 C Y O Q m (>0 L O >. L U = b0 C 'n ' v ° C 'p v- Z> 'O - C C v m C m O. m '3 > 3 3 o > E CU O 9 m O -Lu a c m O oN IL v o m m E° E~ � vi m O >• o0 C c H m E E >' Q) y C W. 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VT m 00 ac U W C G W Z m co a O o U F F ^ O w N ti o Q V7 "a 00 O O 0 ry m m a+ W 01 `� l0 cn r` 00 0) �/1 t, O Z ^ m t" i w w W W m m ac a: u u C C X K K K 2' O_ m m K K K m m u u m m m no ry m m m m m m > O � C u O O O O O O O 0 00 � O M H > a H A+0" C Om LA W O F 7 m M C U N •� mm O of x l0 m LO t 00 r m m Ql Ol Ol � O 0 0 0 w 3 L) £ on C.6O t CL o = c +" i 5u 0 CwC L L F "0 N m m w Cf Q t Q- v Q) v w G F " ao p Q m Q m en U 2 L w i O =1 w o_ o (u 0 E N p= v3 N 3 i x m m Z c= `w L a v w v = y �° a ° a °LLQ 00 w w� �Q a m mm u N Q K a J a--¢ Q lm0 w co Q iE V Ln N 2 RENTAL MARKET ANALYSIS Elk River General Occupancy Rental Housing Locations 175th Ave NW e 9j'0SI NE t 9J,h Z 92nd St NE 190014 91.t Sr Sr 44 m OOl,>ntl Av t.'. NF a e _ Q.6km .j. 90th $t NE �5� 1 tilyl pye NW I%t•.r In NSN 101 Maxfield Research & Consulting, LLC Market Rate Or Granite Shores 2nd:.tNW N 41 CIH F,ul �° lam, y� 2 4. r6 —n'=1wL' 187nd Park 6. Elk Park Estates 7. Elk Ridge Estates 'A Z _ 3 14 Ridgew°06�1 � 1sl � 1g8lh Ave ~ 1 River Garden Apartments Rrrshr' titj. a 9, 13. 117th Ayi NW � 1961h�' B g T..1h Fan p �'�.� 1�m En NW NW Pk F P � a wnhl: fe -' _ `___ ____ rer k i1 ayjy �W^ Z h S ryO tia meNw ? n 'A"d O 96th S1 '92nd AYe N4L' 4 • ' P.4 - u0lh A -NW Meaq .. � �K'Ne Knoll i e. Z P a1 `� n � 190tt` F Rry r,.k C° 1a lst apA o—n d' 1� 'm� 17^a • Sc�r31NW c us -10 E 6 Usk 9 Z glen �Park X.16 tons w z 21 • n` Pons 6th St NW e Toth `J 12 5th St NW2 51h StNW �F )rd Ave NW°n° PkV MOr� s El A v It t River ° tld, t' ,\ , 15 �1' 13 6 1p hi 3111 11 175th Ave NW e 9j'0SI NE t 9J,h Z 92nd St NE 190014 91.t Sr Sr 44 m OOl,>ntl Av t.'. NF a e _ Q.6km .j. 90th $t NE �5� 1 tilyl pye NW I%t•.r In NSN 101 Maxfield Research & Consulting, LLC Market Rate Or Granite Shores 2nd:.tNW Awe 4Nt 3. Lion's Park 4. G ` w . 187nd el 6. Elk Park Estates 7. Elk Ridge Estates 'A Z I 9. Elk Crossings/School Street 181.1A—NW River Garden Apartments 4 Pineview Estates 12. Lake Orono Estates 13. Oak Crest Apartments Invy Ciyp.PaM -' _ `___ ____ ___-- -___ _.- Sl NE G 1 ,. GSh.j' 11y g60 Otsego 96th S1 175th Ave NW e 9j'0SI NE t 9J,h Z 92nd St NE 190014 91.t Sr Sr 44 m OOl,>ntl Av t.'. NF a e _ Q.6km .j. 90th $t NE �5� 1 tilyl pye NW I%t•.r In NSN 101 Maxfield Research & Consulting, LLC Market Rate 1. Granite Shores 2. Evans Meadows 3. Lion's Park 4. Ridgewood Manor 5. Tara Hills Estates 6. Elk Park Estates 7. Elk Ridge Estates 8. Balmoral Apartments 9. Elk Crossings/School Street 10. River Garden Apartments 11. Pineview Estates 12. Lake Orono Estates 13. Oak Crest Apartments Key: Affordable 14. The Depot at Elk River Station 15. Jackson Place 16. Dove Tree Apartments 17. Dove Terrace Apartments 18. Elk Ridge Manor 19. Coachman Ridge Section 8 20. Lanesboro Heights Townhomes 21. Auburn Place 60+Units 40-59 Units 21-39 Units Less than 20 Units FA MAXFIELD RESEARCH AND CONSULTING 26 Ln J Q Z /Q V Z N M O N2 I.Y O Z W LA N 2 - v v w o o) L oo , O c f U o c L o bo aT o O O u b0 0 9 a o Q C oo v° v o -'a L a c -a 3 Y N O '� OV o N .° N U V1 .V of O M N > E L N c °c o o" -a y 3 n 3 s bn c 'E o o z m o y 3 > N o Q 4 o by 2:1 N o Q m 3 lu b0 o E v cL °oC E o S E E Q E o a a �n C L .c TuT O aU Q ' b0 y0 c of E N O O E O= °v W 01 E u ba a v c E 3 v .c a n N Y y E o a c ti W N 3 O > j v c -a O c Y ? N N ry L -O O U `^ i N of (D C L C u E Cn U E o Y U O u of �n 2 N a '^ v " o -a oo c m a. z c L N >. .v+ vi 3 E U O v c E+ v Q u N U N O N bb N m N of `1 of c n E � a L o y O N o =, 0 Q) a c v 3 a c o v v 3 a a — �.+ a -aa N m L >, f0 Q O -O w b0 -a fb C a u c c nm v C7 v o o v 7 o l� u� m -a Q) 3 >v o o o w z Ri M oo o o m^ o o.-, a oo V o to � u rn m m ri rn N oo ui oo o v o n O z W T 6 vT .n m +n +n m oo m oo +n vt +n o oo Lf1 +n vt Z > oo L N O i V N V oo N N C @ .-1 M m M ul O L!1 u1 to t~/T O O m = Q Y N O N l�0 H N O O L!1 lN0 l00 7 W 2 W N ti n O U O N to vT vT vT C m WQ oo O O c C VT O o ~ Z T m v � � � N O N K C N 00 rj O O O m�t oo �o O O C N.� o .ti O '-i .ti ri m M r M N l0 mm N W M d N N n ti T V TT V u C C C N M NK K K K K K m K K K K LL K m f0 T m m m m m m > oo [o m m LL oo > > H ti N N N M N t N N ti N W ti 01 a' ti N e O M V N O� 0 0 � .-1 M N O N N N N N VI Z ^ N O a a u Z � O O O O O O O oo .--i O O O r•1 H > O Y 6 C � N m N Z Wo T m o m m m m a L o ?) d 3 3 z tA p o m u_ o v v zl N v O o \ 2 ? V tN 7 3 O C O N c ad K ~ N d £ viiQj y a a in v > Q Q Q aj Q Z lL r c a > v d .y i m N to Y Y V Lf1 r- 3 O aO Y O N > to m i\+ 3 3 Y~ Q ` N O Q a ti V w m O Q N Y m fo O > M? ui N a W M W M 1 0 N 2 LA J a Z a Z N M 0 0 Z W N 00 N Z J H Z 0 v 0 Z a x v a W H W W LL x a 2 v o m v > CLE o v E O v E c O v V o _ 0 O N c N C c ~Qi v v c > f0 O N E O C 00 u E c c O O O N N u O Y N O u n n N O N Nc O 5— C) N 0 N rL N L 2 2 D u N Q W ii h to W Q Q L C3, Q Q I I Q G a C v a G O a 0 G Q a a a bD> C3 C3 -0 a v l7 l7 v v l7 t U` O + + u O O + z + V N �o N c �o O E V1 O In Lf1 M \ O d W C O V O K Q Q Q Q M O M �`'� V1 O 4/T N O Z W 00 >L ~ 0� T O. _ _ O O _ _ O O o o M o0 ll = Y N N O Md G yl 0 O O O O V? VT Vim? C N M -Cl 3 m K LL N Q O O o v c F- Z r^ K W � \ yl U N d H k O N u Lf1 M -;t OC lf1 00 O Vl 00 O lD lf1 't t 'T n 7 f0 f0 't M T T u u C C 0 f0 O Q K K K K mmK T 00 a0 00 [o > > m 00 00 00 H ti N N N N N � ti N W N N lD N e O C N N Z o C O u Z m O O O O O N O O O 00 N O p C OM Z um'i lND N M V V N W oo J d 7 T a0l .�-I T~ ON M O V Y Y Ln N O W W F L u v m a v 'vi u N \ H Oq N —y J = N E 3 a s v Q¢ n a > Q L m a L C c f0 a a p LL �, Z a 2 CC c N C C N " C 00 f0 ti L � W t%f w CC m w AR w a Nv rn Ov m m Oi !� w j 3 0 3 v' Q Q 7 m y 7 m > O O. Q m Q l7 .-i O .-� O vOi 00 N Z J H Z 0 v 0 Z a x v a W H W W LL x a 2 SENIOR HOUSING ANALYSIS Meado"aiF ao' Halghls Park m 0 ro7�iJ i.rp NW' - _ Elk River Senior Housing Locations rr u 8.0 cl-erburne County Fairgrounds r.ak 9m nna Park -z Mla—.Ppl Rd HW Ry fro q e f w z w otsego95th St NE tkm r.l •,t Sf N,c 1 mi Maxfield Research & Consultine LLC 2. a z x i C rJah Knoll Park y 4 Q4rlrupl Sr NW 3 `o tt5yl z o ark Park z 3 N 0. Park N � n a ° = c Elk w m iyer r 7 M14a N Sf 3. • 4.1%6� Main At 5. Key: Adult/Few-Services Ownership 1. Pullman Place 2. Elk Run Village Adult/Few-Services Rental Market Rate 3. Elk Terrace 4. Evans Park 5. Riverview Apartments Subsidized 5. Riverview Apartments 6. Angel Ridge 7. Guardian Oaks Assisted Living 8. Guardian Angels by the Lake Memory Care 8. Guardian Angels by the Lake Under Construction 9. Elk River Senior Housing 10. Guardian Angels - Otsego Hlghlalla. East Park r' g93ro, c�, NVJ Royal Valle 1=' ,il Birch Meado Park yZ z Trott Brack Farm, Park 182.t Ave NW - Hillslde City Park 2 m Iri 1, 90th -SINE- - cue ';`171st Ave NN; 60 + Units 40-59 Units 21-39 Units Less than 20 Units no MAXFIELD RESEARCH AND CONSULTING 29 N`t'l M'eoOOWL.flu �r 6 V 1� R ornnn i_a rra 8.0 cl-erburne County Fairgrounds r.ak 9m nna Park -z Mla—.Ppl Rd HW Ry fro q e f w z w otsego95th St NE tkm r.l •,t Sf N,c 1 mi Maxfield Research & Consultine LLC 2. a z x i C rJah Knoll Park y 4 Q4rlrupl Sr NW 3 `o tt5yl z o ark Park z 3 N 0. Park N � n a ° = c Elk w m iyer r 7 M14a N Sf 3. • 4.1%6� Main At 5. Key: Adult/Few-Services Ownership 1. Pullman Place 2. Elk Run Village Adult/Few-Services Rental Market Rate 3. Elk Terrace 4. Evans Park 5. Riverview Apartments Subsidized 5. Riverview Apartments 6. Angel Ridge 7. Guardian Oaks Assisted Living 8. Guardian Angels by the Lake Memory Care 8. Guardian Angels by the Lake Under Construction 9. Elk River Senior Housing 10. Guardian Angels - Otsego Hlghlalla. East Park r' g93ro, c�, NVJ Royal Valle 1=' ,il Birch Meado Park yZ z Trott Brack Farm, Park 182.t Ave NW - Hillslde City Park 2 m Iri 1, 90th -SINE- - cue ';`171st Ave NN; 60 + Units 40-59 Units 21-39 Units Less than 20 Units no MAXFIELD RESEARCH AND CONSULTING 29 SENIOR HOUSING ANALYSIS Summary of Elk River Competitive Multifamily Properties Among 983 general occupancy units, 64% were market rates units, 30% were affordable units and only 6% were subsidized units. There has been no new multifamily developments con- structed since the previous study in 2015. Market Rate Rentals in Eik River • In total there were 14 market rate apartments with 16 units or more in Elk River. Our sur- vey indicated that the overall vacancy rate among all property types was nearly 6.2%, with 39 vacant units among 633 total units. This however includes the Elk Park Estates apart- ments that account for 27 of the vacant units. Excluding this property, the vacancy rate falls to 2.1%. This is well below the recommended 5.0% equilibrium to account for sufficient turnover in the market. Thus, pent-up demand exists for more market rate rental units. • Elk Park Estates is an anomaly in the market as in the prior 2015 study had 25 vacancies. This property is the Ione poorly performing larger rental development in the city. Subsidized and Affordable Rentals in Eik River • The overall vacancy rate among all property types was 0.0% among 350 total units. No available units in the market indicates that there is additional need for affordable and/or subsidized units in Elk River. MAXFIELD RESEARCH AND CONSULTING 30 FIGURE 1 2017 MHFA/HUD Income Limits Sherburne County Income Limits by Household Size 1 phh 2 phh 3 phh 11 4 phh 5phh 6phh 7phh 8phh 30% of median $18,990 $21,720 $24,420 $27,120 $29,310 $31,470 $33,630 $35,820 50% of median $31,650 $36,200 $40,700 $45,200 $48,850 $52,450 $56,050 $59,700 60% of median $37,980 $43,440 $48,840 $54,240 $58,620 $62,940 $67,260 $71,640 Maximum Gross Rents by Bedroom Size 0 BR 1BR 2BR 3BR 30% of median $474 $508 $610 $705 50% of median $791 $848 $1,017 $1,175 60% of median $949 $1,017 $1,221 $1,410 Sources: MHFA; Maxfield Research & Consulting, LLC Summary of Elk River Competitive Multifamily Properties Among 983 general occupancy units, 64% were market rates units, 30% were affordable units and only 6% were subsidized units. There has been no new multifamily developments con- structed since the previous study in 2015. Market Rate Rentals in Eik River • In total there were 14 market rate apartments with 16 units or more in Elk River. Our sur- vey indicated that the overall vacancy rate among all property types was nearly 6.2%, with 39 vacant units among 633 total units. This however includes the Elk Park Estates apart- ments that account for 27 of the vacant units. Excluding this property, the vacancy rate falls to 2.1%. This is well below the recommended 5.0% equilibrium to account for sufficient turnover in the market. Thus, pent-up demand exists for more market rate rental units. • Elk Park Estates is an anomaly in the market as in the prior 2015 study had 25 vacancies. This property is the Ione poorly performing larger rental development in the city. Subsidized and Affordable Rentals in Eik River • The overall vacancy rate among all property types was 0.0% among 350 total units. No available units in the market indicates that there is additional need for affordable and/or subsidized units in Elk River. MAXFIELD RESEARCH AND CONSULTING 30 SENIOR HOUSING ANALYSIS Senior Housing in Eik River Maxfield Research surveyed the 405 senior housing units in Elk River. We identified one va- cant unit, resulting in an overall vacancy rate of 0.2%. Generally, the equilibrium for senior housing ranges from a 5% to 7% vacancy rate. Thus, the current rate indicates pent up de- mand for additional senior housing at all levels. Planned or Pending G. 0. and Senior Housing Developments Eik River Hearth Development is currently building the 100 -unit Elk River Senior Living senior housing project in Elk River. The project is located at the intersection of 181St Avenue NW and Line Avenue NW. The project will include 36 congregate units (independent living with light ser- vices), 40 assisted living units, and 24 memory care units. The project is set to be com- pleted late summer 2018. • Guardian Angels is developing Riverview Landing in Otsego located just across the river from Elk River off of Highway 101 in the Waterfront East planned unit development area. The project which is currently under construction will include 126 assisted living units and 16 memory care units. While this development is not located in Elk River, it is located just across the border in Otsego and would be directly competitive with Elk River senior housing projects. • There is one proposed general occupancy development in Elk River. Patrick Briggs has sub- mitted a proposal for a 40 -unit mixed income apartment building. The project would be lo- cated at 6t" Street and Jackson Avenue. The current proposal shows at least eight units that would be affordable and 32 market rate units. The project would be developed under Tax Increment Financing. Because the project is recently proposed it is unclear when and if the building would be developed. MAXFIELD RESEARCH AND CONSULTING 31 FOR SALE MARKET ANALYSIS For -Sale Housing Resales $300,000 $ 250,000 $200,000 d u L a 2 $150,000 LA $100,000 $50,000 $0 Elk River For -Sale Resales- 2000 to 2017 _b% 200? 2001 ?ooh _oq20os ?00 ?oo, ?po& 2009 2010 2011 201� ?010 ?o1A 20VS ?016 ?01, Year 700 600 500 400 d d 300 °C 200 100 0 MAXFIELD RESEARCH AND CONSULTING 32 TABLE FS -1 HOME RESALES CITY OF ELK RIVER 2000 to 2017 No. Avg. Sales Avg. % Med. Sales Median % Days on Market Cumul. DOM' % Lender Year Sold Price Change Price Change Avg. Median Avg. Median Mediated 2000 353 $172,769 - $159,000 - 49 25 2005 519 $254,038 6.5% $234,900 4.7% 88 61 - - - 2010 313 $173,153 4.2% $160,000 1.3% 70 49 134 77 69.9% 2011 382 $145,781 -15.8% $132,000 -17.5% 88 59 147 106 70.2% 2012 390 $162,862 11.7% $157,000 18.9% 81 50 114 ' 68 56.7% 2013 445 $184,650 13.4% $172,000 9.6% 56 35 82 47 33.8% 2014 466 $207,424 12.3% $195,000 13.4% 60 42 78 49 17.6% 2015 532 $220,638 6.4% $214,450 10.0% 51 33 74 41 10.7% 2016 496 $234,248 6.2% $230,500 7.5% 42 23 61 ' 29 7.4% 2017 583 $258,287 10.3% $245,000 6.3% 41 25 51 30 4.0% Total 00'-17' 7,268 Summary 00' to 10' Change 0.2% 0.6% Average 428 $210,270 $193,977 70 48 170 124 Summary 11' to 17' Change 77.2% 85.6% Average 471 $201,984 $1920279 60 38 53 ' Cumulative Days on Market initiated in 2006. Cumulative days equals the number of days on market over the course of the past year (i.e. covers number of days if the property was relisted) z Lender Mediated Properties include foreclosures and short sales. MLS data for this property type began in July 2008. Sources: Regional Multiple Listing Service of Minnesota, Maxfield Research & Consulting, LLC $300,000 $ 250,000 $200,000 d u L a 2 $150,000 LA $100,000 $50,000 $0 Elk River For -Sale Resales- 2000 to 2017 _b% 200? 2001 ?ooh _oq20os ?00 ?oo, ?po& 2009 2010 2011 201� ?010 ?o1A 20VS ?016 ?01, Year 700 600 500 400 d d 300 °C 200 100 0 MAXFIELD RESEARCH AND CONSULTING 32 FOR SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING 33 TABLE FS -2 SINGLE-FAMILY AND MULTIFAMILY RESIDENTIAL SALES CITY OF ELK RIVER 2000 through 2017 Median Average Number Selling % Selling % Year of Sales Price Chg. Price Chg. Single -Family 2000 318 $162,400 - $175,779 -- 2005 411 $251,900 5.3% $272,383 6.3% 2010 235 $181,000 4.7% $193,931 5.8% 2011 273 $160,000 -11.6% $166,955 -13.9% 2012 293 $175,000 9.4% $181,439 8.7% 2013 350 $189,450 8.3% $202,385 11.5% 2014 353 $214,900 13.4% $225,623 11.5% 2015 404 $237,536 10.5% $228,000 1.1% 2016 367 $256,356 7.9% $242,396 6.3% 2017 437 $282,550 10.2% $269,900 11.3% Pct. Change 00'- 17' 37.4% 74.0% 53.5% Multifamily* 2000 35 $142,580 -- $145,163 -- 2005 108 $172,775 3.4% $184,227 2.8% 2010 78 $107,442 7.4% $110,555 3.3% 2011 109 $90,000 -16.2% $92,842 -16.0% 2012 97 $105,000 16.7% $106,746 15.0% 2013 95 $117,500 11.9% $119,313 11.8% 2014 113 $135,000 14.9% $150,570 26.2% 2015 128 $167,304 23.9% $152,450 1.2% 2016 129 $172,353 3.0% $155,000 1.7% 2017 146 $185,665 7.7% $167,500 8.1% Pct. Change 00'- 17' 317.1% 30.2% 15.4% * Multifamily includes twinhomes, townhomes, and condominiums (cooperatives are typically not listed in the MLS) Source: Regional Multiple Listing Service of MN; Maxfield Research & Consulting, LLC MAXFIELD RESEARCH AND CONSULTING 33 FOR SALE MARKET ANALYSIS TABLE FS -3 HOME RESALES BY SALES PRICE & PRODUCT TYPE CITY OF ELK RIVER 2017 Under $100,000 2 0.5% 1 0.7% 3 0.5% $100,000 to $149,999 6 1.4% 20 13.7% 26 4.5% $150,000 to $199,999 53 12.1% 86 58.9% 139 23.8% $200,000 to $249,999 116 26.5% 20 13.7% 136 23.3% $250,000 to $299,999 111 25.4% 16 11.0% 127 21.8% $300,000 to $349,999 77 17.6% 2 1.4% 79 13.6% $350,000 to $399,999 42 9.6% 1 0.7% 43 7.4% $400,000 to 499,999 28 6.4% 0 0.0% 28 4.8% $500,000+ 2 0.5% 0 0.0% 2 0.3% Total 437 100.0% 146 100.0% 583 100.0% Sources: Regional Multiple Listing Service of Minnesota, Maxfield Research & Consulting, LLC 80.0% 70.0% 60.0% 50.0% a w 40.0% 0 a 30.0% 20.0% 10.0% 0.0% Resales by Price Point & Type: 2017 72.6% ■SF ■MF 51.9% 27.2% o 13.5 % 0.5%0. % ■ 0.5% <$100k $100k -$200k $200k -$300k $300k -$400k $400k -$500k $500k+ Sales Price MAXFIELD RESEARCH AND CONSULTING 34 FOR SALE MARKET ANALYSIS TABLE FS -4 HOUSING SALES PER SQUARE FOOT (PSF) ELK RIVER 2005 to 2017 2005 $122 $131 $116 $140 2006 $117 $126 $114 $127 2007 $113 $121 $113 $113 2008 $92 $98 $90 $118 2009 $79 $82 $76 $103 2010 $82 $85 $79 $107 2011 $69 $72 $68 $111 2012 $76 $80 $76 $130 2013 $86 $92 $84 $130 2014 $94 $98 $91 $136 2015 $100 $105 $99 $148 2016 $106 $114 $104 $174 2017 $114 $122 $112 $171 Source: Regional Multiple Listing Service of MN, Maxfield Research & Consulting, LLC $140 $120 $100 $80 LL N a $60 $40 $20 $0 Elk River Sales per Square Foot (PSF) N N N N N N N N N N N N N O O O O O O O O O O O O O (I7 01 V 00 l0 O F-` N W A l!i 01 V Year MAXFIELD RESEARCH AND CONSULTING 35 FOR SALE MARKET ANALYSIS 16 14 12 10 N i N 8 J w 0 6 u 4 2 0 TABLE FS -5 HOMES CURRENTLY LISTED FOR -SALE CITY OF ELK RIVER February 2018 Price Range No. Pct. No. Pct. < $99,999 0 0.0% 0 0.0% $100,000 to $149,999 1 2.3% 1 10.0% $150,000 to $174,999 1 2.3% 1 10.0% $175,000 to $199,999 3 7.0% 1 10.0% $200,000 to $249,999 3 7.0% 3 30.0% $250,000 to $299,999 13 30.2% 1 10.0% $300,000 to $349,999 8 18.6% 3 30.0% $350,000 to $399,999 6 14.0% 0 0.0% $400,000 and Over 8 18.6% 0 0.0% 43 100% 10 100% Minimum $109,900 $148,000 Maximum $674,000 $349,150 Median $305,990 $217,950 Average $322,646 $237,245 i Includes townhomes (attached & detached), twinhomes, and condominiums Sources: Regional Multiple Listing Service of MN Maxfield Research & Consulting, LLC Elk River Active Listings - February 2018 Under$100k $100kto $150kto $200kto $250kto $300kto $400k+ $149.9k $199.9k $249.9k $299.9k $399.9k List Price MAXFIELD RESEARCH AND CONSULTING 36 LA 7A J a z a F- LU Y a W J a LA cc O N M z H J H z O v 0 z a x v a w LA LS w LL x a 2 M w m O w N O N O O O O M O 00 M 61 -A 0 a) 00 O LA O O M O O O O O O O a) O O N -1 N N N N N N N -A N N L!1 O Mzt M n LO t ;j- 00 K* w LD Ln 00 N N Ol r -I Q1 R* Ln Ln M M M O't Ln I" N M 00 W N I,t 't 00 r -I 00 O 00 (7 -zt Q) I, M N I, r -I O Ln n N W 14 a q LU a H O I� M O r- N M O O Ln LA (J LD O I� 00 N LD I*, LD LD O R* O Z L(1 M Q1 � r� N r l r -I-1 O R* M J Ln N cr LD N6 00 N O Ql Ln w r- Lr N N Lr O r -I 00 O n M n O UA :3 00 M r -I M N N N M M r -I N N M a'i iR +� = W h N 7 LL>-> >• c LLIJ Co w " O U a F- Z w J Li I- O Q1 M M r -I N 0 0 N u LA J N LU G a v 0 00,0, o� 0 o ��� x 0 N O LD M O O O O O O N n O 0 0 0 0 O 0 N M r -I r -I Z O 41 U rl w w V1 M r Ln r- O LMl1 N 0.0 C N J a, a Q. E Z O s 41 a O > 3 t > 41 3 c CO > *' N H v m i i cc LL O O �^61 61v iC O ta� 41 aGcJo °a vc > O + 3 O r r 7" • a N Ln M O H O H O H O H ONO L/) N M z H J H z O v 0 z a x v a w LA LS w LL x a 2 FOR SALE MARKET ANALYSIS Townhomes 3 -level split+ a, Split entry CL 2 story+ 2 1.5 -story 1 story 0.0% $450,000 $400,000 $350,000 $300,000 CU U a` $250,000 $200,000 00 a $150,000 $100,000 $50,000 $0 Listings by Housing Type - Elk River 5.0% 10.0% 15.0% Pct. 1.2% 20.0% 25.0% 30.0% 35.0% Average List Price by Type MAXFIELD RESEARCH AND CONSULTING 38 rn M 2 00 V N N O M I� to N W N lD w 00 V O N I� I� N l0 N 00 M� m M N M� M N M M N N 0 0 0 0 0 0 0 0 �+l 0 0 0 0 0 0 0 0 vl Ln .-I lD N V V N Ln m I, N N O N tD O M N N N O to W M 00 tD I!1 M Dl N N N N vt .-I tD W tD N N M I --I N N N 0 0 0 0 0 O P ID T 0 N O ZT .--i T lD I� n m O lD V O n O O R m V N .--I N N N T N H N O T I� N V O O m 0 I -I O vl O V N O N C O ✓t O ti m O O O I 0 0 0 N I, N O O M O W O r -I .-I N W O m O O I 0 0 0 0 0 0 N O H M H Z Z O O W M O O m to 0 0 0 0 1 0 Ill O O W O M Vl O - lD Ill w Il O O ID N T O lD N Ill V H O Ill V O M N Ill M w N D N-4 M N N N N Ill M M ID Dl lD uY M M V1 N V? N V? VT t? In In O 2 ❑ Ill O N N O O Ill O M o O O O O O m O M H M O O W S N N H H O lf1 Ill O w N w W lD w w m W Ill n N N N V N N N N N N H N c -I N N N N N ID O Ill e -I N t? VT t? V? t/? N 44 t? t? VT L? W O W fL O W Q Vt O O Ill N N Ifl 1l1 lf1 Ill 1� O O O 1l1 O O to N o Oo O v1 O D Icy e^ -I N l0 V w w Il M V w w M N n Dl o0 M F- Z j H L Ln W Z a r O z T T T T T T S T T T S S T T S T T T T T T T T T p EE E E E E a E E E a a E E a E E E E E E E E E lA L1 11 L1 11 lL 11 11 11 11 W N L(L lL N - - 11 lL L L L L 11 IL 11 11 11 N U1 N U1 O/ O1 U N O1 N U U N U/ U OJ N U1 O/ U1 N N O1 N m C C C C C C v C C CC C v C C C C C C C C C � Vl VI Vl Vf N VI ❑ Vl VI Vl ❑ ❑ Vl N ❑ VI Vl Vf N VI N Vl VI N M 00 tD O-- n n N W. Ill.V. to S O V UCJUCJCJUN CJ CJ UC CJ H m N -ZT m -4 N N N N H N N N M N V N V V V M N V N OJ N O1 N O) U/ N O1 N 41 N N U/ N O1 N U1 N v v v d v > > > > > > > > > > > > > > > > > > > > > > > D Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q LL LL LL LL LL J J = C - SF i C w O —oO W ,O 3 3-m O` H Y w w -Cp H N o w u C m O O ❑ w O O O N S K cW ry L W w\ O h � Y Y G O 0_ -O Q Y L l6 H UJ C_ O y Y 2 OJ N m t6 N Q o O O O EO - p lL cL 2 CC Qj _@ L C>> ao w N .= d J J a ;' N w Y Y h ` N j C C '" a a a O L- U C U b2 OJ Q [O w 2 Y g a z H H H o u W 2 H u • a a v a a v a a a a a v a a v a a v a v a a a -o -O L L L L L L L L L L L L L L L L L L L LL L L L U U U U U U U U U U U U U U U U U U U t0 f0 (0 f0 l6 f0 l6 (0 f0 t0 f0 l6 (0 l6 (0 l0 (0 f0 l6 U U U U U l0 l6 (0 f0 f6 p IO Ol U1 N O1 0) U1 N N O1 N O1 N N N Ol OJ 01 0/ U1 N N N J c,l N O1 N O1 0) UJ U/ N O1 N U1 N N U/ N O5 N O50J > > > > > > > > > > > > > > > > > > > ym„ W N N W N D > > > > > m O W u • K OC K K K CC K K C K R KK K K C K K OC CC D: K CC K =O • Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y j Y Y Y Y Y o W W W W W W W W W W W W W W W W W W W N W W W W W IA VI rn M 2 J Q z Q F- LU Y a W J Q N cc O l7 Z J H z O v 0 z a v a W LS W W LL x a 2 O a in N O 0 N a o in o N l0 N 0 0 o O o o F- 0 0 0 0 Z O Z_ O o oo o' W x Q W N O LL Y W H ZO W r r_ L F- 0 O J ca Z OE N N H O L O L � 3 3 m 0 O v v > a j � v m C c O U _ o6 � L U C _ = � a v v v 3 O — 6 — X m � v L U v L u lo � y v v m v m �> Y O Y O u w 7 N w 7 Vf O to l7 Z J H z O v 0 z a v a W LS W W LL x a 2 FOR SALE MARKET ANALYSIS Summary of For Sale Market Conditions Residential Resales • The number of home sales reached 583 in 2017 which is the highest figure since 2004. The average days on market continues to decline and remains low in 2017 at 51 days and a me- dian of 30 days. Since 2015, the median sales price of residential properties has risen 18%, from $214,450 in 2013 to $245,000 in 2017. Single-family homes during this time increased 19% from $237,536 to $282,550 while multifamily homes increased 11% from $167,304 to $185,665. Home resale prices have been rising steadily since the lowest point in 2011. In 2017, 69% of home sales range from $150,000 to $299,999 with the largest proportion of residential resales occurred in the $150,000 to $199,999 bracket with 24% of the sales oc- curring. The majority of sales (62%) in this price point were multifamily units. Homes that sold from $200,000 to $249,999 accounted for 23% of total sales in 2017 and consisted of 85% single-family units. Another 22% of homes were sold between $250,000 and $299,999 with 87% consisting of single-family units. Active Listings The median list price for single family homes in Elk River was $305,990 in February 2018 compared to $279,900 back in August 2015. Multifamily homes listed in February 2018 had a median list price of $217,950 which is relatively similar to that back in August 2015 at $215,725. • There was a total of 53 homes listed for sale in February 2018 compared to 150 homes back in August 2015. The difference can be attributed to the time of year with less homes typi- cally listed during winter months. Single family listings accounted for 81% of the listings. • On average, multi -family listings were slightly newer, with an average year built of 2005, compared to an average year built of 2003 for single-family homes. This indicates that a number of active listings are newly constructed homes Lot Supply • There are 161 lots available in active subdivisions with 81 lots available in newer subdivision active since 2017. The largest proportion of lots are in Miske Meadows subdivision with 51 vacant developable lots with homes marketing from $250,000 to $400,000. MAXFIELD RESEARCH AND CONSULTING 41 FOR SALE MARKET ANALYSIS There is a total of 318 future single family lots planned in Elk River. 222 of lots are located in currently active subdivisions (Miske Meadows, River Park, and Woodland Hills). Another 57 lots are located in recently absorbed subdivisions (Eagles Marsh and Hillside Estates). The remaining 39 future lots are in recently platted subdivisions (Anborn, Trace Heights, and Cranberry Ridge). • Only one multifamily townhome development is currently active (Boulder Point) with 4 va- cant developable lots. Tall Pines has plans for 26 future townhome units. MAXFIELD RESEARCH AND CONSULTING 42 HOUSING DEMAND ANALYSIS Estimated Demand for For -Sale Housing TABLE HD-1 FOR -SALE HOUSING DEMAND ELK RIVER 2017 to 2025 Demand from Projected Household Growth Projected HH growth under age 65 in the Market Area 2017 to 2025' 415 (times) % propensity to own x 76.5% (equals) Projected demand from new HH growth = 317 Demand from Existing Owner Households Number of owner households (age 64 and younger) in Market Area (2017)3 5,287 (times) Estimated percent of owner turnover x 30% (equals) Total existing households projected to turnover = 1,586 (times) Estimated percent desiring new housing x 10.0% 159 (equals) Total demand from HH growth and existing HHs 2017 to 2025 = 476 (times) Demand from outside Elk River Market Area 15% (equals) Total demand potential for ownership housing, 2017 to 2025 560 (times) Percent desiring for -sale single-family vs. multifamily6 x 85% 15% (equals) Total demand potential for new single-family & multifamily for -sale housing = 476 84 (minus) Units marketing or approved platted lots (undeveloped and developed lots)6 161 4 (equals) Excess demand for new general occupancy for -sale housing = 315 80 1 Estimated household growth based on data from Table D-1 as adjusted by Maxfield Research & Consulting, LLC z Pct. of owner households under the age of 65 (U.S. Census American Community Survey - 2016) 3 Estimate based on 2016 owner households under age 65 (US Census American Community Survey) ° Based on on turnover from 2010 American Community Survey for households moving over 10 -year period. 5 Based on preference for housing type and land availability 6Approved platted lot data does not account for the scattered lot supply which includes individual lots and lots in older non -marketing subdivisions. Multi -family demand includes demand for townhomes, detached townhomes, twinhomes, and condominium units. Source: Maxfield Research & Consulting, LLC Based on land available, building trends, and demographic shifts (increasing older adult popula- tion), we project 85% of the for -sale owners will prefer traditional single-family product types while the remaining 15% will prefer a maintenance -free multi -family product (i.e. twin homes, townhomes, or condominiums). We then subtract the current identified platted lots that are under construction or approved. After subtracting the current lot supply in subdivisions (161 total single-family and four multifamily lots) we find total demand through 2025 resulting in 315 single-family lots and 80 multifamily lots. MAXFIELD RESEARCH & CONSULTING, LLC 43 e IJ V Z J H Z O u W U d' W H W 0 J W LL x a 2 0 > 0 OSS t0 01 to a V 0 M N N w Ln N 111 �T c \ N N Lfl .--I - o 00 0 �o ^� N n M W O p Ln O N O m N p N 00 M a a to Q V 0 CJ1 o N O \ l0 \ l0 00 L am O 1, N N 00 N LO N a N^ 1» 00 m 3 O 00 O 2 M w M O 0 00 as o0 00 m E m ti 3 n 00 j M Z Ln c O 0a)c 01 0l N a -I M M -I N O N lD N 00 O � m 00 1 1 LM N i 000 Q Q O o O LnT ON 0 C° M l0 Lf) N v W 1 11 1!1 I� N -1 o O M O M 3 N 0 w N N O a --I Vl W O 2 Z >_ N v }T 'c W rA O 7 J Y ^ J E = W H N U J O C X 11 X 11 X 11 O U Z N a1 0 a0 C E f0 L Q 0 O C O >O Y _ N OE E O n � = 00 = 0 w O O O 0 i11 > O 111 N •� 3 7 t 0 C 0 O O L 0 N p L a L O O •�tl0 N O O 0 O @ Y O N N C 0o O = �n 7 In p r, �+ pD rl N y i T O = N t L 2 C O N 0 a00 N `^v u u C 7 O T C u x CL F -.V 0 0 Q O N ul Q .N G O . OD O Vr-4 3 "6 U U OOD N O 0 O O C 0 Y O L 7 '6 u O '6 O �' E d N = L O C N 0 CC V t10 0 n CL c UO 3 c `^ C N tr 0 O m L 0 O �0n 3 o °� y= v c �_ c° 3 o E° u p -6 Ol N .� �n Z, -0 O 0 Y N f0 E 0 c a3i C Q 3 N 06 0 0 00 0 L C' W u O .> ,_ -8 C 7 f0 O = L C a, i LU N 0 •� u0i 3 w 0 '6 C 0 'O — w w O p O ai U N C N L O E 01D 0 '^ 0 E O = n O ra c v O = C E 0 a 0 O1 = in 0 C W C C 70 O 0�0 O O C N j Q 0 @ V N u O i0 D p = c 11 £ £ O -O £ N� 0 •`� -0 .'^ 'O -O 0 Oy E C 01 O 0 -O 'O 0 Q W y X a0+ I0 LL D O > v 0 o 0 o E v E— E£ $ a v :° a ° E LL C7 _6 2 a LL _ 46 N O CO H m M aj v~ p ._ u W o « �n cm .0 of y1 W ---� W C 0 C C C C\ O O G f0 2'6 U 6 f0 fO f0 f0 ai Q O ~ f6 7 7 O p -0 -O 'O -0 -O 0 O O' E 6 ' O O a 0 3 Er C 7 O' N v0i vCJ 0i C i0 O ns N 0 i 7 D o v D z v a v 0= v E a m m m m vp v E aa, e IJ V Z J H Z O u W U d' W H W 0 J W LL x a 2 HOUSING DEMAND ANALYSIS We find demand for 34 subsidized units, 101 affordable units and 210 market rate units. After subtracting the proposed rental development (40 unit mixed income development) results in demand for 34 subsidized units, 93 affordable units and 172 market rate units in Elk River through 2025. Estimated Demand for Independent/Few Service Senior Housing TABLE HD -3 MARKET RATE ADULT/FEW SERVICES HOUSING DEMAND ELK RIVER 2017 & 2022 # of Households w/ Incomes of >$35,000' # of Households w/ Incomes of $24,999 to $34,999' (times ) Homeownership Rate (equals) Total Potential Market Base (times) Potential Capture Rate (equals) Demand Potential Potential Demand from Market Area Residents (plus Demand from Outside Market Area (25%)z (equals) Total Demand Potential (times) % by Product Type (equals) Demand Potential by Product Type (minus) Existing and Pending MR Active Adult Units3 (equals) Excess Demand for MR Active Adult Units Age of Householder 55-64 65-74 75+ 1,307 741 380 + 89 83 103 x 78% 88% 63% = 1,376 814 445 x 0.5% 5.0% 15.0% = 7 41 67 114 + 38 = 152 Owner- Renter - Occupied Occupied x 40% x 60% = 61 = 91 Age of Householder 55-64 1,329 + 91 K 78% 65-74 849 89 88% 75+ 401 115 63% = 1,400 927 473 x 0.5% 5.0% 15.0% = 7 46 71 = 124 + 41 = 166 Owner- Renter - Occupied Occupied x 40% x 60% = 66 = 99 - 111 - 77 111 - 77 0 = 14 = 0 = 22 ' 2020 calculations define income -qualified households as all households with incomes greater than $40,000 and homeowner households with incomes between $30,000 and $39,999. Z Based on project manager interviews and historical trends. We estimate that roughly 40% of demand will come from outside the markt area. 3 Existing and pending projects are deducted at market equilibrium (95% occupancy). 2022 includes the Elk River Senior Living development currently under construction. Source: Maxfield Research & Consulting, LLC Total demand for 14 renter occupied units in 2017 while demand for owner -occupied housing is being absorbed by the current supply. Adjusting for inflation, we have estimated that households with incomes of $40,000 or more and homeowners with incomes of $30,000 to $39,999 would income qualify for market rate independent senior housing in 2022. It is pro- jected demand for adult owner -occupied will continue to absorbed by existing units while de- mand exists for 22 adult rental units in the City of Elk River through 2022. MAXFIELD RESEARCH & CONSULTING, LLC 45 HOUSING DEMAND ANALYSIS Estimated Demand for Affordable and Subsidized Independent Senior Housing TABLE HD -5 SUBSIDIZED INDEPENDENT SENIOR HOUSING DEMAND ELK RIVER 2017 & 2022 TABLE HD -4 2017 2022 AFFORDABLE INDEPENDENT SENIOR HOUSING DEMAND 331 (times) Percent of Income Qualified Seniors Needing/Desiring Subsidized Senior Housing x 30% ELK RIVER (equals) Demand Potenital from Market Area residents = 88 99 (plus) Demand From Ouside the Market Area (40%) + 58 2017 & 2022 (equals) Total Demand Potential for Subsidized Senior Housing in Market Area 146 166 (minus) Existing & Pending Subsidized Senior Units in Market Area* 114 114 (equals) Total Market Area Subsidized Senior Housing Demand Potential = 32 52 Age of Householder Age of Householder 55-64 65-74 75+ 55-64 65-74 75+ # of Households w/ Incomes of $30,000 to $54,400 284 212 254 251 222 284 (times ) Percent Renter Households x 22% 12% 37% x 22% 12% 37% (equals) Total Potential Market Base = 63 26 93 55 27 105 (times) Potential Capture Rate x 1.5% 10.0% 20.0% x 1.5% 10.0% 20.0% (equals) Demand Potential = 1 3 19 = 1 3 21 = 22 = 24 Total Market Rate Demand Potential (plus) Demand from Outside Market Area (40%) + 15 + 16 (equals) Total Demand Potential = 37 = 41 (minus) Existing and Pending Aff. Independent Units' - 0 - 0 (equals) Total Demand Potential in Market Area = 37 = 41 ' Includes existing and pending units at 95% occupancy, or market equilibrium. No additional units are planned through 2022. Source: Maxfield Research & Consulting, LLC TABLE HD -5 SUBSIDIZED INDEPENDENT SENIOR HOUSING DEMAND ELK RIVER 2017 & 2022 2017 2022 Age 65+ Households w/Incomes < $20,000 292 331 (times) Percent of Income Qualified Seniors Needing/Desiring Subsidized Senior Housing x 30% 30% (equals) Demand Potenital from Market Area residents = 88 99 (plus) Demand From Ouside the Market Area (40%) + 58 66 (equals) Total Demand Potential for Subsidized Senior Housing in Market Area 146 166 (minus) Existing & Pending Subsidized Senior Units in Market Area* 114 114 (equals) Total Market Area Subsidized Senior Housing Demand Potential = 32 52 * Competitive subsidized units, minus a 7% vacancy rate. Source: Maxfield Research & Consulting, LLC We estimate that the total demand potential for affordable and subsidized rentals will equal 37 and 32 units respectively in 2017. By 2022, the demand potential will increase to 41 af- fordable units and 52 subsidized units. MAXFIELD RESEARCH & CONSULTING, LLC 46 HOUSING DEMAND ANALYSIS Estimated Demand for Congregate Senior Housing TABLE HD -6 MARKET RATE CONGREGATE HOUSING DEMAND ELK RIVER 2017 & 2022 # of Households w/ Incomes of >$35,000' # of Households w/ Incomes of $25,000 to $34,999' (times) Homeownership Rate (equals) Potential Market (equals) Total Potential Market Base (times) Potential Capture Rate (equals) Demand Potential Potential Demand from Market Area Residents (plus) Demand from Outside Market Area (25%) (equals) Total Demand Potential (minus) Existing and Pending Congregate Units3 (equals) Excess Demand for Congregate Units Age of Householder 65-74 75+ 741 380 + 83 103 x 88% 63% = 73 65 Age of Householder 65-74 75+ 849 401 + 89 115 x 88% 63% = 78 72 814 445 = 927 473 x 1.5% 13.0% x 1.5% 13.0% = 12 + 58 = 14 + 62 = 70 = 75 + 23 + 25 = 93 = 101 0 34 = 93 = 67 ' 2020 calculations define income -qualified households as all households with incomes greater than $40,000 and homeowner households with incomes between $30,000 and $49,999. 2 The potential capture rate is derived from data from the Summary Health Statistics for the U.S. Population: National Health Interview Survey, 2007 by the U.S. Department of Health and Human Services. The capture rate used is the percentage of seniors needing assistance with IADLs, but not ADLs (seniors needing assistance with ADLs typcially need assistance with multiple IADLs and are primary candidates for assisted living.). 3 Existing and pending are deducted at market equilibrium (95% occupancy). Source: Maxfield Research & Consulting, LLC We estimate a total demand calculated for 93 congregate units in Elk River in 2017. Adjusting for inflation, we estimate that households with incomes of $40,000 or more and senior home- owners with incomes between $35,000 and $39,999 would qualify for congregate housing in 2025. Following the same methodology and accounting for the units under construction at the Elk River Senior Living development, demand is calculated to decline to 67 units through 2025 in Elk River. MAXFIELD RESEARCH & CONSULTING, LLC 47 HOUSING DEMAND ANALYSIS Demand Estimate for Assisted Living Housing TABLE HD -7 MARKET RATE ASSISTED LIVING DEMAND ELK RIVER 2017 & 2022 Percent Number Percent Number Needing Needing Needing Needing Age group People Assistance' Assistance' People Assistance' Assistance' 75-79 432 25.5% 110 597 25.5% 152 80-84 296 33.6% 99 326 33.6% 110 85+ 343 51.6% 177 345 51.6% 178 Total 1,071 387 1,268 440 Percent Income-Qualified2 53% 53% Total potential market 205 233 (times) Percent living alone x 53% 53% (equals) Age/income-qualified singles needing assistance = 109 124 (plus) Proportion of demand from couples (12%)3 + 15 17 (equals) Total age/income-qualified market needing assistance = 123 140 (times) Potential penetration rate x 40% 40% (equals) Potential demand from PMA residents = 49 56 (plus) Proportion from outside the PMA (30%) + 21 24 (equals) Total potential assisted living demand = 71 80 (minus) Existing market rate assisted living unitss 56 93 (equals) Total excess market rate assisted living demand = 15 0 ' The percentage of seniors needing assistance with ADLs, based on the 2005 panels of the Survey of Income and Program Participation (SIPP) files, conducted by the U.S. Census Bureau. z Includes households with incomes of $40,000 or more (who could afford monthly rents of $4,000+ per month) plus 40% of the estimated owner households with incomes below $50,000 (who will spend down assets, including home -equity, in order to live in assisted living housing). 3 The 2009 Overview of Assisted Living (a collaborative project of AAHSA, ASHA, ALFA, NCAL & NIC) found that 12% of assisted living residents are couples. 4 We estimate that 60% of the qualified market needing assistance with ADLs could either remain in their homes or reside at less advanced senior housing with the assistance of a family member or home health care, or would need greater care provided in a skilled care facility. s Existing and pending units at 93% occupancy. Source: Maxfield Research and Consulting, LLC. We estimate an excess demand for 15 assisted living units in Elk River in 2017. By 2022, total excess demand for market rate assisted living units in Elk River is projected to be absorbed by the units at the Elk River Senior Living development under construction. MAXFIELD RESEARCH & CONSULTING, LLC 48 HOUSING DEMAND ANALYSIS Estimated Demand for Memory Care Housing TABLE HD -8 MEMORY CARE DEMAND ELK RIVER 2017 & 2022 65 to 74 Population 1,655 1,984 (times) Dementia Incidence Rate' x 2% x 2% (equals) Estimated Age 65 to 74 Pop. with Dementia = 33 = 40 75 to 84 Population 728 923 (times) Dementia Incidence Rate' x 19% x 19% (equals) Estimated Age 75 to 84 Pop. with Dementia = 138 = 175 85+ Population 343 345 (times) Dementia Incidence Rate' x 42% x 42% (equals) Estimated Age 85+ Pop. with Dementia = 144 = = x 145 360 45% (equals) Total Senior Population with Dementia = 315 (times) Percent Income/Asset-Qualified2 x 45% (equals) Total Income -Qualified Market Base = 142 = 162 (times) Percent Needing Specialized Memory Care Assistance x 25% x 25% (equals) Total Need for Dementia Care = 35 = 40 (plus) Demand from Outside Market Area (30%) + 15 + 17 Total Demand Potential = 51 58 (minus) Existing and Pending Memory Care Units3 - 28 - 50 (equals) Excess Demand for Memory Care Units = 23 = 8 ' Alzheimer's Association: Alzheimer's Disease Facts & Figures (2009) 2 Income -qualified households consider 3/4 of those with incomes greater than $60,000 plus 15% of homeowners with incomes below this threshold. 3 Existing memory care units less units occupied by public pay residents and a 7% vacancy rate. Source: Maxfield Research & Consulting, LLC We estimate the excess demand for memory care units in Elk River to be 23 units in 2017. Fol- lowing the same methodology, demand is calculated to decrease to 8 memory care units through 2022 after accounting for the units under construction at the Elk River Senior Living de- velopment. MAXFIELD RESEARCH & CONSULTING, LLC 49 DEMAND SUMARY AND HOUSING RECOMMENDATIONS Demand Summary/Overall Housing Recommendations TABLE CR -1 SUMMARY OF HOUSING DEMAND CITY OF ELK RIVER February 2017 Type of Use lGeneral-Occupancy Rental Units - Market Rate 172 Rental Units - Affordable 93 Rental Units - Subsidized 34 For -Sale Units - Single-family 315 For -Sale Units - Multifamily 80 Total General Occupancy Supportable 694 Age -Restricted (Senior) Market Rate Adult Few Services (Active Adult) 14 22 Ownership 0 0 Rental 14 22 Congregate 93 67 Assisted Living 15 0 Memory Care 23 8 Total Market Rate Senior Supportable 145 97 Af ford abl a/Subsidized Active Adult - Subsidized 32 32 Active Adult -Affordable 37 41 Total Affordable Senior Supportable 69 73 Source: Maxfield Research & Consulting, LLC MAXFIELD RESEARCH & CONSULTING, LLC 50 DEMAND SUMARY AND HOUSING RECOMMENDATIONS For -Sale Units - Multifamily For -Sale Units -Single-family Rental Units - Subsidized Rental Units - Affordable Rental Units - Market Rate General -Occupancy Demand by Type 2017 to 2025 Units Senior Housing Demand by Type 2017 & 2022 Adult - Owner I I I I I I I 02017 ■ 2022 I I I I I I Adult -Rental I I I I I I I I I I I I I I I I Congregate I I • I I I I I I I• I I I I Assisted Living I I I I I I I I I I I I I I I I I Memory Care I I I I I I I I I I I I I I I I I I Affordable I I I I I I I I I I I I I I I I I I Subsidized I I I I I I 0 10 20 30 40 50 60 70 80 90 100 110 Units MAXFIELD RESEARCH & CONSULTING, LLC 51 DEMAND SUMARY AND HOUSING RECOMMENDATIONS There are over 300 future single family lots planned/proposed based on Table FS -7. If all of these lots were platted, the above recommended single family lots would be absorbed. The industry recommends a three- to five-year lot supply. Based on the average lot absorbtion of 83 lots per year from the past three years (2015-2017), the City of Elk River currently falling short of a three-year lot supply and would need to add nearly 90 lots to the market. A portion of the planned future lots would be able to bring the commuity to the recommend supply. MAXFIELD RESEARCH & CONSULTING, LLC 52 TABLE CR -2 RECOMMENDED HOUSING DEVELOPMENT CITY OF ELK RIVER 2017 to 2025 Purchase Price/ No. of Pct. Development Monthly Rent Range' Units of Total Timing Owner -Occupied Homes Single Family Z Entry-level >$225,000 65 - 70 24% 2018+ Move -up $250,000 - $350,000 155 - 165 56% 2018+ Executive $350,000+ 55 - 60 20% 2018+ Total 275 - 295 100% Townhomes/Detached Townhomes/Twinhomes z Entry-level >$200,000 30 - 35 46% 2018+ Move -up $200,000+ 35 - 40 54% 2018+ Total 65 - 75 100% Total Owner -Occupied 340 - 370 General Occupancy Rental Housing Market Rate Rental Housing Apartment -style $1,000/11311 - $1,500/3BR 100 - 120 67% 2018+ Townhomes $1,250/2BR - $1,600/3BR 50 - 60 33% 2018+ Total 150 - 180 100% Affordable Rental Housing Apartment -style Moderate Income 60 - 60 67% 2018+ Townhomes Moderate Income 25 - 35 33% 2018+ Total 85 - 95 100% Total Renter -Occupied 235 - 275 Senior Housing (i.e. Age Restricted) Active Adult Affordable Rental Moderate Income 35 - 40 29% 2018+ Active Adult Market Rate Renta 14 $950/1BR - $1,200/2BR+ 50 - 60 43% 2019+ Independent Living (Congregate) $1,750/11311 - $1,950/2BR 30 - 40 27% 2020+ Total 115 - 140 100% Total - All Units 690 - 785 Pricing in 2015 dollars. Pricing can be adjusted to account for inflation. Z Recommendations include the absorption of some existing previously platted lots. 3 Affordablity subject to income guidelines per MHFA. See Table HA -1 for Sherburne County Income limits. ° Alternative development concept is to combine active adult affordable and market rate active adult into mixed -income senior community Note - Recommended development does not coincide with total demand. Elk River may not be able to accommodate all recommended housing types based on a variety of factors (i.e. development constraints, land availability, etc.) Source: Maxfield Research & Consulting, LLC There are over 300 future single family lots planned/proposed based on Table FS -7. If all of these lots were platted, the above recommended single family lots would be absorbed. The industry recommends a three- to five-year lot supply. Based on the average lot absorbtion of 83 lots per year from the past three years (2015-2017), the City of Elk River currently falling short of a three-year lot supply and would need to add nearly 90 lots to the market. A portion of the planned future lots would be able to bring the commuity to the recommend supply. MAXFIELD RESEARCH & CONSULTING, LLC 52 DEMAND SUMARY AND HOUSING RECOMMENDATIONS With the development of Elk River Senior Living and Guardian Angels Riverview Landing which are both under construction and set to be completed later in 2018, demand for assited living and memory care senior housing will be absorbed. These newly developed and existing units will be adequate into the foreseeable future. MAXFIELD RESEARCH & CONSULTING, LLC 53 Housing and Redevelopment Authority Maxfield Housing Study Update April 2, 2018 Executive Summary Comprehensive Housing Market Study Update ■ Demand for 864 new housing units through 2025 ■ For-sale housing demand is strongest ■ 395 of the 864 units ■ Strong demand for additional market rate 172 units ■ 93 units affordable rental Elk River Study Area Definition The draw area for determining current and future housing demand in the City of Elk River is based on traffic pattern orientation, proximity to other communities, interviews with local offi- cials and community stakeholders, natural and manmade geographic barriers, and our knowledge of the draw areas for housing. The Study Area is defined as Elk River proper. i KII 4 c+l•Gi YI(ai9 L.YN 4N y l Elk River , sh+'+F re xis ws Nti.�thM 5 3 0 e wn si dl V-A..ww t +,o ..-qr IF• 4d Ap".,pwlWi Ram scy tltr 131 saw,crwp II '�' 'r ` t . f y.11 4 .r 4`4rs ------------ MAMELD RESEARCH AND CONSULTING 2 Population and Household Projections 2010-2025 ■ Population gain over 3,230 (14%) ■ Ages 65-74largestgrowth of 1 ,118 people (94%) ■ All other age cohorts will experience a decline in population or experience nominal growth Elk River Population Trends 1990 - 2020 25,OW 25,5161 26,20 2 '-7 4 16,447 CL 06 11,143 5," 01990 0 20DO 0 -7. 02017 0 2022 02025 02030 Elk River Study Area Household Trends 1990- 2020 12,,GDO 10,00 ---------------- ----------------------- ---------------- - 8,617 9,005 9,298 9,7G4 ------ S.C30 ------- --- 4,OW ------ 3.732 2,DW ------ 0 0 1qqU 0)-000 0 1 0 1... 0 0 202b 0 203D, Li Adult Population Age Distribution Elk River 2000 to 2025 %c)OO -—-—-—-—-—-—-—-—-—-—-—-—-—-—-—-—-—-—-—-—-—-—-—-—-—-— i 000 . ------------(N 6 � ~ I 000 -------- 66 % O -------------- 00 " q 2 ----------- St 4,000 Lr� --------� 0. i 3,000 ---- — � I JO 3 ¥ o rI% L.D (D r I en t�O . � % 7 O - 18 /! 25 41 45-64 + Are Cohort 2000 2010 2017 ■ 2022 2025 Elk River Homeowners by Age of Householder -2616 1,800 87.9% 166% 1,600 82.4% 80.0°t96% 7 7.996 1,400 68.0% 86% y 3.2% 70% 1,300 1.644 1$} 132 66% s a 1,000 1,288 F 56% 800 46% 3 66{1 719 40{1 32.1x,} OND.ofHDmeowners 36% i0{] �'Horreownersn D Ratr 401 26% z 34 16% 0 6% Age of Householder Elk River Renters by Age of Householder -2016 600 1(1[796 �No-ofRer[es 60% 500 90% 67.9% #Pct Renters 400 7 70% n 33 60% 300 36,896 50% 40% z 2669 3096 166 12.1 20% �3 1096 {7 096 Age of Householder Household Income and Area Median Income HUD dunes affordable housing costs as 30% of household adjusted gross income ■ Elk River median income of $78,428 per year can afford a monthly housing cost of $1 ,956 ■ Single-family home value of $235,284 - $273,868 Growth and Income Trends by Age of Houhod er Elk River 2017 to 2022 2,000 $120 00 \BOO ------------------ -- -------- �2017 0 2022 tBOO ----------- a7 £ o _ 20!5 _. $1000000 1,400 ----- — — / -- i GI5—-—-—-—-—-—- $e%000 CW ƒ IOZOO ------ -- _ -- --- --------- § -- -- --- $ E D 10000 -- --------- $6%000 c , _ Z: ROO —• —• —• - $ -��4�— q � � ° $4 0.00O 2 } 600 -------- -- ^ # - q 2 rw 400 ----- -- $70oOOO ZOO > O $O 1§-24 2y34 aye 4 w54 55-EA 65 -G 75+ AJe of Householder a Household Income by Age of Householder ■ Household income of $55,477 equates to a monthly housing cost of about $1,386 ■ Households incomes below $15,000 are typically a market for deep subsidy rental housing ■ In 2016, this was about 13% of renters Rropen5Ity to Rent by Household Income E I k River, 2016 (5-Year ACS 5 O 1.00 ; 4 S --•---•---- -- ; i ---•----- 90% RLmiWri 400 ------------------------ ------------- --•---•----- �%Rrn[ers 80% 3501 --•---•-------------•-------- —•------- — 70% 0 ------ —•--- — — — 489 ----- -------- — — 5096 42Q 2030 --•---•-------------•------- — — — 40% 150 i -----------•------- — — — 30% 100 —! -----------•------- — — — — 209 01 so —•— — --- -- — I 10% 1 ❑- 0% . Employment Trends Sherburne County ■ Employment increased by 12,780 from 2000-17 ■ 2017 unemployment rate 3.9% 3.6% in MN ■ 4.4% in US ■ The average number of employees rose 30.8% between 2000 and 2016. ■ Education and Health Svcs. Sector 951 (70%) increase ■ Professional and Business Services Sector 416 employees (46%) increase TABLE E-3 CON MLIiINGINFLOWiOUTFLOW CHARACTERISTICS CITY OF ELIC RIVER 2015 CKVTotal 10A64 1w.0% 904" 100.0% 2,299 190 By Age Workers Aged 29 oryaunger 2,324 22.296 2,393 251% SOS 263% Workers Aged 36m54 6,315 60.4% S,2jD4 S4.9% 1,151 SD-1% Workers Aged 55 or older 1,814 17.4% 1,8,64 19.9% 543 23-6% By Monthly Wage Workers Earning$1"250 per month or less 2,089 20.0% 2,7-68 29.2% 931 40-S% Workers Earning$1,251 to$3,333 per month 2,623 25.1% 2,815 30.3% fi81 29-15% Workers Earn ing More than$3,333 per month 5,743 54.9% 3,938 40.5% 597 29-9% By lodu" "Goads Producing" 2,313 22.1% 1,9133 20.4% 310 13-5% "Trade,Transportation,and Utilities" 2,279 21.9% 1,835 19.4% 492 21.0% "All Other Services" 5,a63 56.1% 5,713 60.3% 1,.507 65-6% Sources: US Census Bureau Local Em eatDynamics;Maxfield Research and Consulting,LLC City of Elk River:Inflow/Outflow L _ F - L0,45 2,29' 5 rrn I� E P-el P L O Y Pyl E o oa T TABLE E-4 MAJOR EMPLOYERS CITY OF ELI[ RIVER 2017 Ern Io r Prod vets Services EMPI c—a Count I SD #728 E c ucat iot7 1,125 Sherburn-e County Government 595 ,"retex Companies, Inc. Precast Conc re to N rod u tts 55 Wal-Mart Retail Store B54 'L"oborn's Gfi over w Store 265 Great River Energy} Electric Otility 250 Elk Riser Nursing H on7 a Nursing Care 240 Guard ian Angel s of EI k Rive r. Irl t Nursing Care/Housing 200 The H on7 a Depot Retai I Store 200 Sporteeh, Inc RI @sties Th e rmoform ing 185 City of Elk River Government 183 Teseom Corporation Pressure Control Dowices 173 M arra rds Retai I Store 150 First National Financial Serwiees Financial Institution 142 Avalon Home Care Home Wealth Gare 110 E & 0 Tool and Plasties, Inc Injection Molding 110 Tlie Bank of Elk River Financial Institution 107 M e to I Graft Machine & Engin.aL ri ng Precision Machining 105 Cub Foods Grocery Store 100 Tota I 5,144 Sources= Sherburne County; City of Elk Riwcr; Maxfield Research & Consulting, LLC . Housing Characteristics New Housing Permits ■ In 2017, 113 residential units ■ Since 2013, 398 single family units, 5 townhomes and 68 multifamily rental units ■ The dominate housing type is single-family home at 89% of all owner-occupied and 25% of renter- occupied units as of 2016 Elk River General Occupancy Rental Housing Locations FAr:r� ? atyc�a a 101 � u� ..7eersv. Pri Y' 5ut t�mwlur+rrp s�,ra+a '�'"�'tiw. � i#�4. S �aqT h•o �� a� — Wyyp �a... 77{}��r-W 41� ps. Pao �tl���.```i*(wv .kms Mdu'8 is : F.I rays t' g 1''In YID' N k ` IiL � w t � idn 4 �La[� �rN551tan A .. is 44 } e"4+5!vaC r l9 Si Maxfield:Research&Consulting,LLC Key' 60+Un its Market(tate Affordable 40-59 Units 1. Granite Shores 14_The Depotat Elk Rrver Station 21-39 Units 2. Evans Meadows 15_Jackson Place Less than 24 Un is 3. Lion's Park ifi_ Dove Tree Apartments 4_ Ridgewood Manor 17_ Dove Terrace Apartments 5. Tara Fulls Estates 18_ Elk Ridge Manor 5. Elk Park Estates 19_Coachman Ridge 7. Elk Ridge Estates B. Balmoral Apartments Section 8 9. Elk Crossings/School Street 2C_ Laneshorc Heights Townhom 10. River Garden Apartnnerm 21. Auburn Place 11. Pineview Estates 12. Lake Orono Estates 13. Oak Crest A,parhnents - Competitive Multifamily Properties Among 983 general occupancy units ■ 64% market rate units ■ 30% affordable ■ 6% subsidized ■ No new multifamily construction since 2015 ■ In total, 14 market-rate apartments w/16+ units ■ Corrected vacancy rate among all property types is 2.1 % ■ Demand exists for more market rate rental units a Affordable / Subsidized Property Demand 350 total units ■ The vacancy rate among all property types was 0.0% ■ No available units indicates need for affordable and/or subsidized units ■ Does not include ER Lodge and Suites - Senior Housing Properties 405 senior housing units surveyed ■ Identified one vacant unit - vacancy rate of 0.2% ■ Generally, senior housing equilibrium ranges from 5- 7% vacancy rate ■ Current rate indicates demand for additional senior housing at all levels Elk River Senior Housing Locations ,a,Lnspa� 4 _ . S? _ P. iar!R n t — ' °L+ L n z � S V'Nlq, lane 1RRR # acn,:. w �mr nr,ry �nP Litl,S s z . 1 Hk "c ; SM,bun• Mia dr IOVIRi r,� 8� F 4'.w baeara-� 5. _ I.xk an ew W 47,R+ I I,AI lyn k'1Y I'is.il 4 6n ; °QBaer al rit nr�L 3 I rix awl •ns,S,'P Yilksx Na , Maxfield Research u.Consulting LLC Rey: 60+Units 40-59 Units Adult/Few-Services Ownership L Pullman P:'ace 21-39 Units 2- Elk Run Vil age Less than 20 Units Adult/Few-Services Rental Market Rate 3- Elk Terraoe 4- Evans Park 5- RiveriewApartmentc Subsddired 5_ Riverview Apartments 5_ Angel Ridge 7_ Guardian Oaks Assisted Living 8. Guardian Angels by--,c-xk . Memory Care 8_ Guardian Angels hythe Lake U oder Consxnaxion 9_ Elk RuerSenior Housing 10. Guardian Angels-OL—.ego MAXFI ELD RESEARCH AND CONSULTING 29 - Planned or Pending Projects ■ Hearth Development — 100-unit senior housing ■ Projected completion — late summer 2018 ■ Guardian Angels ■ 126-unit assisted living ■ 16-unit memory care ■ Jackson Hills Residential Suites — 40-unit mixed income apartments . For Sale Market Conditions Since 2015 ■ Median residential sale prices have risen 18%, from $214,450 to $245,000 ■ Single family list price increased from $279,900 to $305,990 in Feb of `18 ■ 150 homes listed as compared to only 53 homes listed For Sale in Feb `18 ■ 318 future single family lots planned ■ 222 of 318 lots are located in active subdivisions (Miske Meadows, River Park, and Woodland Hills) DeMaild S4immaryloverall Housing Recommendations TABLE CR-1 SUMMARY OF HOUSING 1)EMAND CITY OF ELK R IV ER February 2017 Type of Use + GeneraiLoccupancy R-armtaI UnAs Markot Rata 172 Renta I Units-Afforda bl a 93 RentaI Units-Subsidized 34 For-Sale Units- 5i'I��I_ ".j."rIl 315 For Sale Units MLI[ifa1-1 I'f so Fotyi Gemerqi Occu troc Su ortubf-o &94 a � J1 Restrfc[ed jsi2vi r` MOiPket Rd20 Adult Ferny Scr4 Lt:'� ;ALLIve AduIL, 14 22 O wnefshi,p 0 0 Rental 14 22 Congregate 93 67 Assisted Liming 15 0 Newory Cary 23 8 F717 Mor°kef Hotr-SrrrrorS 145 �7 Affbf dable Suhsi&zetf Active Adult Subsidized 32 Active Adult -Affofd ablc 37 rtl Totaf A orda bie Senior Suppormble 69 T� Source: Maxfield Research & ConsLIting, LLC Demand Summary Over 300 future single family lots planned/proposed • When platted the recommended single family lots would be absorbed. ■ Short of 3-year lot supply ■ Need to add 90 lots to meet demand • With ER Senior Living and Guardian Angels Riverview Landing, demand for assisted living and memory care senior housing will be absorbed. Questions? Contact: Amanda Othoudt, EDFP Economic Development Director Main: 763.635.1042 aothoudtkElkRiverMN.gov