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Maxfield Research & Consulting August 15, 2019 MEMORANDUM TO: Ms. Chloe McGuire Brigl City Planner City of Ramsey FROM: Mr. Matt Mullins Maxfield Research and Consulting, LLC. RE: Twin Cities Housing Trends: For -sale, Rental, and Senior Housing Markets Introduction This memorandum provides an overview of housing trends in the Twin Cities Metro Area for the general -occupancy apartment market, senior housing market, and the for -sale market. Please note all trends and data is reflective of market performance as of July and August 2019 and is subject to change based on economic conditions, market performance, submarket loca- tions, etc. Rental Housing Market • Multifamily apartments have been the leading real estate product types for nearly a decade and the Twin Cities is one of the top apartment markets in the country. For the third year in a row, Twin Cities apartment deliveries have shattered the previous year's peak. This year, Maxfield Research estimates more than 8,000 new units are anticipated to be deliv- ered in 2019 surpassing last year's peak by +40%. Minneapolis is leading city for new con- struction as over 2,800 units are expected to deliver in 2019. Combined with suburban Hennepin County, an estimated 70% of all new apartments in the Metro Area will be in Hennepin County. • The Twin Cities market will continue to be a top apartment market in the country with strong market fundamentals: low unemployment rate & rising wages, strong demographics, low vacancy rates, and capital pouring into the multifamily sector. Furthermore, the apart- ment market has benefited from the lack of supply in the for -sale market as buyers remain on the sidelines due to the lack of homes for -sale. (main) 612-338-0012 (fax) 612-904-7979 7575 Golden Valley Road, Suite 385, Golden Valley, MN 55427 www.maxfieldresearch.com