Presentation on theme: "2014 Windom Housing Market Analysis Viewpoint Consulting Group, Inc. 9104 Barrington Terrace Brooklyn Park, MN 55443 763-273-4303 www.viewpointconsult.com."— Presentation transcript:
2014 Windom Housing Market Analysis Viewpoint Consulting Group, Inc. 9104 Barrington Terrace Brooklyn Park, MN 55443 763-273-4303 www.viewpointconsult.com Prepared for:EDA of Windom / Windom HRA Prepared by:Viewpoint Consulting Group, Inc. Date:May 20, 2014 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.
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 1970s1980s1990s2000s Projected 2010s Population+714-383+207+156+204
Demographic Highlights 52% of Windom’s households with incomes under $35,000 were cost burdened (spent 30%+ of gross income on housing) Distribution of Windom’s Households by Income & Tenure
Employment Highlights Source: US Census Bureau – Local Employment Dynamics
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.
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.
Windom Owner-Occupied Housing Trends Source: Cottonwood County Assessor’s Office
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.
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.
Windom Housing Demand 2014 - 2020 Housing Units Household Growth85 Demand from outside Windom22 Replacement Need15 Pent-up Rental Demand8 Total130 Rental/Senior Housing95 - 10075% Owner Housing30 - 3525% 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 owner- occupied housing.
Windom Housing Recommendations New Construction, 2014 - 2020 Housing Type Number of UnitsPrice/Rent Range Affordable Rental Townhomes28 - 30$585/2BR / $660/3BR Market Rate Apartments16 - 18$510/1BR, $635/2BR Market Rate Rental Townhomes12 - 14$735/2BR, $815/3BR Independent/Assisted Living24 - 26$1,600/1BR, $1,900/2BR Memory Care Assisted Living12 - 12$4,800/Stu, $5,200/1BR Single-family homes (entry-level)12 - 14$155,000 - $185,000 Single-family homes (move-up)8 - 10$200,000+ Townhomes10 - 12$145,000 - $160,000
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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