Agenda - Council Work Session - 09/24/2013

Home

older communities of Anoka, Coon Rapids, and Fridley. Each of these cities is actively seeking to encourage new housing in their respective station areas, which will create the potential for increased market share. The Ramsey Station Draw Area market share of the Northstar Corridor Draw Area is estimated to increase from 23.0 percent of the Northstar Corridor Draw Area households in 2013 through 2020 to 24.0 percent in 2021 through 2025, and 25.0 percent for the following 10-year period. Ramsey's stabilized market share of Ramsey Station Draw Area demand is estimated at 65 percent from 2013 to 2035. This is an estimated 351 households in 2013, increasing to 361 in 2015, and then fluctuating up and down throughout the 20 year period to 296 in 2035 as household growth slows in the Metropolitan Area. These household growth forecasts assume historic household formation rates. Until household formation recovers, new households and new residential construction are likely to be less than forecast. Owner -occupied homes represented 91.5 percent of all Ramsey housing units in 2010, a decrease from 97.4 percent in 2000. During the housing boom 2000 to 2006, 2,031 building permits were issued: 756 (37.2 percent) for single family homes and 1,275 (62.8 percent) for multi -family units. The multi -family category included two apaitinent buildings with 170 units or 12.0 percent of the multi -family total. Townhomes, condos, and duplexes accounted for 88 percent of the units. At the present time, there is less interest in townhomes due to lower prices for single family homes. Fortunately, there has been a trend toward higher demand for rental housing as interest in homeownership has moderated. It is uncertain if this is a long-term trend. Ramsey has a 230-unit apartment building under construction at the present time. In the near term, stabilized demand for rental multi -family is likely to represent 20 to 25 percent of stabilized housing demand, mostly apartment buildings. Ownership housing, single family and townhome, is estimated at 75 to 80 percent of demand. The townhome component could be satisfied by a mix of traditional single family, detached townhomes, and townhomes when demand for that category recovers. These percentages can vary from year to year based on developer interest and assume that housing units are available, properly marketed, and competitively priced. 4-22