Agenda - Council Work Session - 11/24/2009

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RENTAL HOUSING MARKET CONDITIONS · The physical vacancy rate was 5.1 % at newer communities and 5.0% at older communities, which is at market equilibrium for general occupancy rental housing. The current economy has softened the rental market somewhat due to job loss, households doubling up with roommates or living with family members, and households choosing to purchase for-sale housing units. Hence, demand is likely to be temporarily dampened until the economy strengthens. · Monthly rents among the newer surveyed units average $810 for one-bedroom units ($0.97/sq. ft.), $984 for two-bedroom units ($0.92/sq. ft.) and $1,208 for three-bedroom units ($0~94/sq. ft.). All ofthe projects but two charge an additional fee for enclosed parking (Cut- ters Grove and Dellwood Estates include enclosed parking in the monthly rent). Extra fees for parking range from $40 to $65 per month. · Monthly rents among the older surveyed units average $599 for one-bedroom units ($0.91/sq. ft.), $835 for two-bedroom units ($0.84/sq. ft.) and $1,091 for three-bedroom units ($0.81/sq. ft.). All ofthe projects except for Woodland North charge an additional fee for enclosed parking. Extra fees for parking range from $40 to $50 per month. · Using the industry standard that households can afford a housing cost of30% oftheir in- come, a household earning approximately $32,400 could afford the average one-bedroom rent in the newer apartments, and those earning approximately $23,960 could afford one- bedroom units at older apartments. Households need incomes of approximately $39,360 and $33,400 to afford two-bedroom units at the newer and older projects, respectively. · Comparatively, average rents at older projects are closely in line with rents at affordable pro- jects; in this market, the affordable rent rates are slightly higher than older market rate rents for one- and two-bedroom units and slightly lower for three bedroom units. The higher rents for affordable housing may be due to a greater number oftownhome-style units in the afford- able housing stock compared to traditional multistory rental housing that comprises the older market rate housing stock. Overall, older market rate projects are indirectly satisfying af- fordable housing needs by offering moderately priced housing without income-restrictions. Market Rate Rental Housing - Features and Amenities · In general, newer and older rental units have air conditioning and fully equipped kitchens. Compared to older communities, newer rental properties often have in-unit washers/dryers and walk-in closets; these features are not commonly available at older communities. · Nearly all newer projects offer community and recreational space; some have an exercise room, underground parking and swimming pool. The least amenity-rich property in the in- ventory is Westminster Apartments. Older rental projects have some similar amenities such as a laundry room and swimming pool (some properties), but generally do not have a com- munity room or exercise room like the newer projects. MAXFIELD RESEARCH INC.