Windom-Housing-Presentation

Report
2014 Windom Housing Market Analysis
Purpose:
To project housing demand in Windom through
2020 and provide recommendations on the
amount and type of housing that could be built to
satisfy unmet needs.
Prepared for:
EDA of Windom / Windom HRA
Prepared by:
Viewpoint Consulting Group, Inc.
Date:
May 20, 2014
Viewpoint Consulting Group, Inc.
9104 Barrington Terrace
Brooklyn Park, MN 55443
763-273-4303
www.viewpointconsult.com
Windom’s Primary Market Area
Demographic Highlights
• Windom grew by 3.5% last decade and is projected to continue growing
this decade, reaching a population of 4,850 in 2020.
• Incomes in Windom are modest ($34,614 median household income in
2013 compared to $56,704 statewide).
• Windom has a high percentage of single households (36%), but renters
with 3+ persons is growing fast (84 HH in 2000 and 145 HH in 2010).
• Older adults and seniors are experiencing the greatest growth, but
younger persons are growing as well.
Population Added, Windom
Population
1970s
1980s
1990s
+714
-383
+207
Projected
2000s
2010s
+156
+204
Demographic Highlights
Population, Windom
1980
1990
2000
2010
2020
2030
Population
4,666
4,283
4,490
4,646
4,850
4,950
Pct. Age
65+
18.3%
22.5%
21.7%
21.2%
23.8%
27.0%
Owner & Renter Households, Windom
2000
2010
Owner Households
1,444
1,415
Renter Households
466
579
Homeownership Rate
76%
71%
MN Homeownership Rate
75%
73%
Demographic Highlights
Distribution of Windom’s Households by Income & Tenure
Number of Households
800
700
Renters
600
Owners
500
400
300
200
100
0
< $25K
$25K - $34K $35K - $49K $50K - $74K
$75K+
Household Income
• 52% of Windom’s households with incomes under $35,000
were cost burdened (spent 30%+ of gross income on housing)
Employment Highlights
Employed Persons
Live and Work in Windom
1,159
Live in Windom, Work
Elsewhere
2,227
916
Source: US Census Bureau – Local Employment Dynamics
Work in Windom, Live
Elsewhere
Employment Highlights
• In 2011, 65% of Windom’s jobs were filled by people living
outside the community.
• Manufacturing is the largest employment sector in Windom
(Toro and PM Beef).
• There is a need for more housing in Windom for local
employees. Representatives of major employers state that
Windom has a shortage of housing – particularly rentals
and mid-priced homes to purchase ($75,000 to $150,000).
• Quality of existing rentals in Windom available to local
workers was an issue raise by some major employers.
Age of Windom’s Housing Stock
Number of Households
1,600
1,400
2000+
1,200
80s & 90s
1,000
60s & 70s
<1960
800
600
400
200
0
Owned
Rented
Year Housing Built
Windom Owner-Occupied
Housing Trends
• Windom’s for-sale housing market is stable (Avg. resale price
of about $97,000 for four straight years).
• About 50 homes were built in Windom last decade, only one
twinhome (2 units) has been built this decade.
• Windom has a very limited supply of available lots for new
construction homes.
June Court
Windom High School
River Bluff Estates
Windom Owner-Occupied
Housing Trends
Average Sale Price by Year Built (2012 & 2013)
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
<1940
1940s
1950s
1960s
1970s
Year Home Built
Source: Cottonwood County Assessor’s Office
1980s
1990s
2000+
Windom Rental Housing Trends
• River Bluff Townhomes is “affordable,” but is the market
leader. It has monthly rents of $615/2BR and $665/3BR.
• River Bluff Townhomes were built in 2001. Windom’s
other market rate housing is older than 35 years.
• Older market rate properties have average monthly rents
of $475/2BR and $550/3BR.
• About half of Windom’s renters live in single-family
homes & duplexes.
River Bluff
Townhomes
Riverview
Apartments
Windom Rental Housing Trends
• 60% of Windom’s non-senior apartment units are
subsidized (residents pay 30% of AGI for rent).
• Windom had a 3.7% vacancy rate among its non-senior
rental housing supply.
• Windom has three senior housing with services buildings –
Pineview AL, Mikkelsen Manor, and Remick Ridge Estates.
• Four Housing Choice Vouchers are being used in Windom –
15 names from Windom are on a waiting list.
Good Samaritan Society Campus
Windom Housing Demand
2014 - 2020
Housing
Units
Household Growth
85
Demand from outside Windom
22
Replacement Need
15
Pent-up Rental Demand
Total
Rental/Senior Housing
Owner Housing
8
130
95 - 100
75%
30 - 35
25%
Demand Sources:
Household Growth – to accommodate the projected increase in population
Demand from outside Windom – capturing a small percentage of commuters
Replacement Need – to replace functionally obsolete units that should be demolished
Pent-up Rental Demand – units needed for the rental market to achieve
stabilized occupancy (95%)
Windom Housing Demand
• 60% of Windom’s demand for new single-family homes is for entry-level
prices ($155,000 - $185,000).
• 60% of Windom’s demand for new rental units is from employees with
household incomes of $30,000+.
• A greater share of demand is for rental/senior housing than for owneroccupied housing.
Change in Tenure, 2000 to 2010
1600
-29 (-2.0%)
2000
1400
1200
2010
1000
800
+113 (24.2%)
600
400
200
0
Owners
Renters
Windom Housing Demand
2014 - 2020
40
Number of Units
35
30
25
20
15
10
5
0
Single-Family
For-Sale
Homes
Townhomes
Rental
Housing
(Afford.)
Rental
Senior
Housing
Housing With
(Market Rate) Services
Windom Housing Recommendations
New Construction, 2014 - 2020
Housing Type
Number of
Units
Price/Rent Range
Affordable Rental Townhomes
28 - 30
$585/2BR / $660/3BR
Market Rate Apartments
16 - 18
$510/1BR, $635/2BR
Market Rate Rental Townhomes
12 - 14
$735/2BR, $815/3BR
Independent/Assisted Living
24 - 26
$1,600/1BR, $1,900/2BR
Memory Care Assisted Living
12 - 12
$4,800/Stu, $5,200/1BR
Single-family homes (entry-level)
12 - 14
$155,000 - $185,000
8 - 10
$200,000+
10 - 12
$145,000 - $160,000
Single-family homes (move-up)
Townhomes
Windom Housing Recommendations
2014 - 2020
1. Bring new subdivisions for single-family homes and
townhomes on-line by 2015
2. Add a mix of rental housing (including re-use of Homes for
Creative Living building)
3. Flood Insurance Rate Map Redrawing
4. Dilapidated Housing Demolition Program
5. Rental Registration Program
6. Continue housing rehabilitation programs
7. Promote use of Housing Choice Vouchers
8. Termite Mitigation

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