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

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RENTAL MARKET ANALYSIS General -Occupancy Multifamily Rental Properties Our research of Ramsey's general occupancy rental market included a survey of four market rate and two affordable apartment properties (8 units and larger) in June 2019. These proper- ties represent a combined total of 547 units, including 446 market rate units and 101 affordable units. Although we were able to contact and obtain up-to-date information from most rental proper- ties, some information was unable to be confirmed via phone and was obtained from third party sources. Table R-3 summarizes information on market rate and affordable general occupancy projects in Ramsey. Table R-4 summarizes common area features and amenities while Table R-5 includes a breakdown of unit types and rents among all general -occupancy housing developments. Market Rate • At the time of our survey, 14 market rate units were vacant, resulting in an overall vacancy rate of 3.1% for all units. The combined overall vacancy rate is well below the industry standard of 5% vacancy for a stabilized rental market rate which promotes competitive rates, ensures adequate choice, and allows for sufficient unit turnover. • The newest market rate general occupancy rental housing project in Ramsey is Park View East Apartments, which came online in 2017 and has a total of 121 units. Market rate rents average $1,440 a month or approximately $1.48 per square foot. • Sizes for market rate units ranged from 478 square feet for a studio apartment to 2,160 square feet for a three -bedroom unit. The average size of all market rate apartments in Ramsey is 942 square feet. • Average rent per square foot for market rate rentals is $1.50 with studios being the highest at $1.85 and two -bedroom plus den units being the lowest at $1.20 rent per square foot. Affordable • There are two general occupancy affordable properties in Ramsey with 101 total units. There were two vacant units as of June 2019. • Typically, tax credit rental properties should be able to maintain vacancy rates of 3% or less in most housing markets. The lack of vacancies for tax credit housing units indicates a need for additional housing of this type. MAXFIELD RESEARCH AND CONSULTING 74