Agenda - Planning Commission - 09/01/2016

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Table 4-2 NORTHSTAR CORRIDOR CITIES RESIDENTIAL BUILDING PERMITS;2000 TO 2011 Minneapolis- Coon Elk Big %of Year St.Paul MSA Fridley Rapids Anoka Ramsey River Lake Total MSA 2000 18,127 20 142 NA 91 284 306 843 4.7 % 2001 18,168 42 286 10 85 256 167 846 4.7 2002 20,160 11 221 15 219 244 155 865 4.3 2003 21,283 144 319 38 454 550 236 1,741 8.2 2004 20,771 11 282 16 564 547 206 1,626 7.8 2005 17,047 27 171 10 391 344 199 1,142 6.7 2006 12,420 9 155 4 176 250 147 741 6.0 2007 8,445 3 73 2 230 116 72 496 5.9 2008 5,107 1 4 26 75 25 11 142 2.8 2009 4,290 1 9 2 45 20 25 102 2.4 2010 5,725 44 10 22 60 15 28 179 3.1 2011 5,148 72 21 2 23 11 57 186 3.6 Total 156,691 385 1,693 147 2,413 2,662 1,609 8,909 5.7 % Source:US Census,Northstar Corridor Communities,Economic&Planning Systems,Inc.,and McComb Group,Ltd. For-Sale Market The Case Schiller home price index tracks the growth in the value of residential real estate by tracking the original purchase price and resale price of homes. The index tracks the major metro areas in the U.S. and compiles a 10 and 20 city composite index for comparison. The Minneapolis metro area home price index peaked in early 2006 and reached its bottom in January 2011, as shown in Figure 4-1. Minneapolis home price index has matched closely with Chicago's home price index over the past 10 years. Minneapolis home prices did not rise as high as the composite 20 city index but prices dropped to a level almost as low as in 2000. The recession coupled with the financial crisis had a major impact on consumer confidence, employment and wages, and consequently on home values. Figure 4-1 MINNEAPOLIS AND SELECTED CITIES HOME PRICE INDEX; 2000 TO 2011 275 -Minneapolis 250 -Chicago -Denver 225 -Seattle -San Diego 200 77'Composite 20 175 / 150 / 125 -- 100 75 50 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Source: Case Schiller. 4-3