Agenda - Council Work Session - 04/28/2020

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RECOMMENDATIONS AND CONCLUSIONS Current detached townhomes marketing in Ramsey are among the lowest priced in the en- tire Metro Area at around $290,000 with about 1,500 square feet ($190 PSF). Pricing for a detached townhome/villa will vary based on a slab -on -grade home versus a home with a basement. Base pricing should start at $300,000 (slab -on -grade) and will fluctuate based on custom finishes, upgrades, etc. • Side -by -Side and Back -to -Back Townhomes — This housing product is designed with three or four or more separate living units in one building and can be built in a variety of configura- tions. With the relative affordability of these units and multi -level living, side -by -side and back-to-back townhomes have the greatest appeal among entry-level households without children, young families and singles and/or roommates across the age span. However, two- story townhomes would also be attractive to middle -market, move -up, and empty -nester buyers. Many of these buyers want to downsize from a single-family home into mainte- nance -free housing, many of which will have equity from the sale of their single-family home. Side -by -side townhomes were overbuilt across Ramsey and the Metro Area last decade and suffered during the recession from foreclosures and short sales. Many of these proper- ties were attractive to investors who purchased the homes and converted to townhome rentals. New construction townhomes have begun to bounce back in the Metro Area as there is a shortage of affordably priced new construction. Prior to the recession new con- struction townhomes were typically priced around $200,000; however today entry-level townhomes in the Metro Area have pushed closer to $275,000. The recently completed Station by D.R. Horton was among the most affordable townhome projects in the Metro Area with an average sales price of about $220,000 or $135 PSF. We recommend side -by -side units, which tend to appeal to a slightly broader market, in- cluding older adults and retirees as well as younger families with children. Side -by -side units (or rowhomes) have increased density and could provide higher returns on invest- ment to builders/developers that would spread out the costs of infrastructure. Associa- tion -maintained townhomes and/or rowhomes can have lot widths ranging from 22' to 35'. Side -by -side townhomes base pricing should start from $240,000 and would be attractive to a variety of first-time and move -up buyers. Because of the growth in the older popula- tion, two-story units should be designed with the option of a master suite on the main level. Side -by -side townhomes command the highest density among the various town - home products and would be the recommended concept for Ramsey, especially near the COR neighborhood. • Condominiums — Given Ramsey's location as an outer ring suburban community; we do not recommend any condominiums at this time due to several hurdles affecting new condo construction. Condominium development across the Metro Area has been slow since the Great Recession. At first the condominium slowdown was a result of overbuilding and sub - prime lending leading up to the housing crash and ensuing recession. However, demand MAXFIELD RESEARCH AND CONSULTING 147