Agenda - Planning Commission - 09/01/2016

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INDEPENDENT SENIOR HOUSING MARKET CONDITIONS Introduction This section of the report examines the current supply and market condition of independent sen- ior housing in the Primary Market Area. Current market rate for-sale and rental independent sen- ior housing facilities as well as affordable and subsidized independent senior housing facilities are presented in this section. Competitive Market Area Senior Housing Communities Maxfield Research identified nine existing senior communities (five market rate rental communi- ties, one for-sale, two affordable, and three subsidized communities) in the Market Area. Infor- mation on the location, number of units, vacancies, unit mix and sizes, and monthly rents are displayed in Table 23. A comparison of amenities and services is presented in Table 24. The following are key points from Table 23 and 24: • There are two market rate independent senior facilities (one rental community and one for- sale) in the market area. In the rental property—Farmstead Cottages—has only six town- home units and rents range from roughly$1,750 to $1,800 for a two bedroom unit with 1,520 square feet. In the for-sale facility (Grey Oaks), unit prices range from as low as $130,000 to as high as $250,000 for units with 875 to 2,400 square feet. • There are nine vacancies in all of the rental facilities combined giving a vacancy rate of roughly 3.1% (with only one vacancy in the affordable properties and none in the subsidized properties). Several of these vacancies are expected to be filled in a relatively short period of time. There are more available units in the for-sale community (25 units)because it is a much newer facility and there are still units being constructed. A vacancy rate of 5.0% is considered to be market equilibrium. With a vacancy rate of 3.1%there is considerable room for growth in the market rate rental senior housing market. • There are three congregate facilities with rents slightly higher than those seen in the adult/few services facilities. This is due to the slightly higher level of service and options available to its residents. Market rate studio units are priced between$600 and$880 with 400 to 500 square feet, one bedroom units run between$870 and$1,325 with between 550 to 950 square feet and two bedroom units run between $1,100 and$1,700 with between 800 and 1,300 square feet. • The subsidized facilities serve seniors in the community with very low incomes. They are generally fully occupied and managers in these facilities have expressed a need for more units. MAXFIELD RESEARCH INC. 45