Agenda - Council - 08/27/2019 - Laserfiche WebLink

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RENTAL MARKET ANALYSIS Introduction Maxfield Research and Consulting LLC identified and surveyed larger rental properties of 8 or more units in Ramsey. For purposes of our analysis, rental properties are classified rental pro- jects into two groups, general occupancy and senior (age -restricted). All senior properties are included in the Senior Housing Market Analysis section of this report. The general occupancy rental properties are divided into three groups: market rate (those without income re- strictions); affordable or shallow -subsidy housing (those receiving tax credits or another type of shallow -subsidy and where there is a quoted rent for the unit and a maximum income that can- not be exceeded by the tenant); and subsidized or deep -subsidy properties (those with income restrictions at 30% or less of AMI where rental rates are based on 30% of their gross adjusted income. Overview of Rental Market Conditions Maxfield Research utilized data from CoStar, a worldwide commercial real estate information & marketing provider, for the Outlying Anoka County submarket, the Outer Coon Rapids/Frid- ley/Blaine submarket, the Dayton/Champlin submarket, and the Twin Cities Metro Area to sum- marize rental market conditions in the Ramsey Analysis Area. The data is shown for the first quarters of 2018 and 2019, the most recent data available. Data on was also take from the 2013 — 2017 ACS to summarize bedrooms by gross rent in 2017 for the City of Ramsey, Anoka County, and the Metro Area. The following are key points concerning Ramsey's rental conditions from Tables R-1 and R-2. Average Rents/Vacancies Trends • The equilibrium vacancy rate for rental housing is considered to be 5.0%. This allows for normal turnover and an adequate supply of alternatives for prospective renters. During the first quarter of 2019, the vacancy rate was 3.9% in Anoka County submarket overall, with the highest vacancies in one -bedroom (4.5%) and studio (4.2%) units. • Between the first quarter 2018 and 2019, the average rents in the Anoka County submarket increased 2.3% overall, with two -bedroom units increasing the most (4.8%) and one -bed- room units contracting slightly by 0.8%. • Overall, rents in the Anoka County submarket were $1,505 in the first quarter of 2019, which was a 2.3% increase from the first quarter of 2018. By comparison, rents in the Outer Coon Rapids/Fridley/Blaine submarket were $1,073 and $1,022 in the Dayton/Champlin submarket in the first quarter 2019. MAXFIELD RESEARCH AND CONSULTING 69