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

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RECOMMENDATIONS AND CONCLUSIONS Recommended Housing Product Types For -Sale Housing Single -Family Housing Table HD-2 identified demand for about 1,340 single-family housing units in Ramsey through 2030. However, after accounting for the existing and newly platted lots about 240 newer lots are available in Ramsey (see Table FS-9); demand is reduced to about 1,100 new lots in Ramsey through 2030. Based on historic construction activity over the past three years, there has been an average of about 100 new single-family units per year in Ramsey; down substantially from the early part of last decade when over 170 single family homes on average were added be- tween 2003 and 2004. The lot supply benchmark for growing communities is a three- to five-year lot supply, which en- sures adequate consumer choice without excessively prolonging developer -carrying costs. Given the number of existing platted lots in Ramsey and the number of homes constructed an- nually, the current lot supply is able to meet demand only for about two to three years. Alt- hough Table FS-9 identified 341 future lots; many of these subdivisions may still be future based on preliminary plat information that may have been platted last decade prior to the housing market slowdown. Therefore, new lots will need to be platted or moved from future lots to vacant developed lots to meet future demand. Due to the resales price of the single-family housing stock in Ramsey, most of the existing older housing stock appeals to entry-level buyers. Entry-level existing homes, which we generally classify as homes priced under $250,000 will be mainly satisfied by existing single-family homes as residents of existing homes move into newer housing products built in the Ramsey Area, such as move -up single-family homes, twinhomes, rental housing and senior housing. A move - up buyer or step-up buyer is typically one who is selling one house and purchasing another one, usually a larger and more expensive home. Usually the move is desired because of a lifestyle change, such as a new job or a growing family. Move -up homes are generally priced from $300,000 to $500,000. Executive -level homes are loosely defined as those homes priced above $500,000. Most of these homes would be build -to -suit new construction on larger lots in the northern portion of Ramsey or in new subdivisions targeting executive buyers. Ramsey is one of the most affordable cities in the Metro Area for buyers seeking new construc- tion. About one-third of the new construction has been priced between $200,000 and $300,000; compared to only 11% in Anoka County and 5% in the 7-County Metro Area. In the Metro Area, new homes priced in the $400s have been in the highest demand. Although de- mand is significant for new homes priced under $300,000; most builders have not been able to deliver product at the lower -end due to several factors (i.e. increased land costs, labor, materi- als, regulations, building codes, etc.). Most new construction in Ramsey starts from the mid $250s and runs to the mid- to upper $300s; or about $160 to $165 PSF. Although demand is MAXFIELD RESEARCH AND CONSULTING 143