Agenda - Parks and Recreation Commission - 04/10/2014

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City of Ramsey 2030 Comprehensive Plan Appendix A: Community Background Although owner -occupied, single-family homes have dominated the development landscape in Ramsey and its neighbors over the last three decades, recent trends suggest that various types of multifamily product are becoming much more prevalent. In the six years between 2000 and 2005, roughly 60 percent of the new units constructed in Ramsey were either townhomes or multifamily units (Figure 3-15). In neighboring Anoka, the percentage was even higher at roughly 75 percent. For Coon Rapids, Champlin, Elk River, and Andover, anywhere between 25 and 50 percent of the new homes constructed have been townhomes or other multifamily units. This is a huge departure from the previous three decades when only 17 percent of the units built were townhomes or other types of multifamily homes. The increase in the number and proportion of townhomes and multifamily homes being built can be attributed to three primary forces: 1) an aging population, in which more and more households are choosing to downsize from single-family homes to maintenance free, attached dwellings; 2) historically low mortgage interest rates and lax lending standards have lured many younger households, who normally would rent, into homeownership; and 3) land costs driven by rapid development and increased commute times have converged at the developing edge of the metro area to make townhomes the affordable entry-level product when 20 years ago it might have been a modest detached single-family home. Figure 3-15 - Distribution of New Units by Type Pct. of Units Permitted to be Built 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Distribution of New Units by Type 2000-2005 Ramsey Anoka Coon Rapids Andover Oak Grove Bums Twp Elk River Champ in Dayton Source: Metropolitan Council; US Census Bureau; City of Otsego; Bonestroo ❑ Multifamily • Townhouse • Single -Family Since 2000, Ramsey has captured a significant amount of home construction in western Anoka County. Over 1,800 units have been permitted for construction, which is, on average, just over 300 units per year (see Figure 3-16). Elk River, to the northwest of Ramsey, is the only other neighboring community to have permitted more units for construction during this time. Although Elk River has permitted more total units than Ramsey between 2000 and 2005, Ramsey has clearly permitted the most number of townhouse units with over 1,000 units. Again this signals a strong trend toward higher density housing, which is driven primarily by affordability, smaller household sizes, and preferences for lower maintenance. Interestingly, Coon Rapids has averaged about 250 units per year since 2000, which is a substantial decline from the 1980s when nearly 750 units per year were permitted for construction or the 1990s when City of Ramsey 2030 Comprehensive Plan Appendix A-21