Comprehensive Housing Market Analysis for the University District Minneapolis, Minnesota
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Comprehensive Housing Market Analysis for the University District Minneapolis, Minnesota Prepared for: The University District Alliance Minneapolis, Minnesota February 2011 615 First Avenue NE Suite 400 Minneapolis, MN 55413 612.338.0012 February 8, 2011 Mr. Kris Nelson Mr. Richard Gilyard CURA Pro Forma Committee Chair 330 HHH Center University District Alliance 301 19th Avenue South 100 Church Street SE #3 Minneapolis, MN 55455 Minneapolis, MN 55455 Dear Messrs. Gilyard and Nelson: Attached is the Comprehensive Housing Market Analysis for the University District conducted by Maxfield Research Inc. The study projects housing demand through 2020 and gives recom- mendations on the amount and type of housing that could be built in the University District to satisfy demand in the short-term. Detailed information regarding recommended housing con- cepts can be found in the Conclusions and Recommendations section at the end of the report. We have enjoyed performing this study for you and are available should you have any questions or need additional information. Sincerely, MAXFIELD RESEARCH INC. Matt Mullins Vice President Attachment TABLE OF CONTENTS Page KEY FINDINGS ................................................................................................................ 1 PURPOSE AND SCOPE ................................................................................................... 7 Purpose and Scope .......................................................................................................... 7 Methodology ................................................................................................................... 7 Acknowledgements ......................................................................................................... 8 DEMOGRAPHIC ANALYSIS ......................................................................................... 9 Introduction ..................................................................................................................... 9 Population and Household Growth Trends and Projections ........................................... 9 Age Distribution .............................................................................................................. 13 Household Size ............................................................................................................... 16 Household Type .............................................................................................................. 17 Household Income ........................................................................................................... 18 Tenure .............................................................................................................................. 25 Tenure by Income ............................................................................................................ 26 Tenure by Age of Householder ........................................................................................ 28 Consumer Profile ............................................................................................................. 30 Demographic Summary ................................................................................................... 33 HOUSING CHARACTERISTICS ................................................................................... 34 Introduction ..................................................................................................................... 34 Age of Housing Stock ..................................................................................................... 34 Housing Stock by Structure Type ................................................................................... 36 Residential Construction Trends in the University District ............................................ 38 Assessed Value of Housing Units ................................................................................... 41 Relative Homestead Status .............................................................................................. 43 Neighborhood Staff Interviews ....................................................................................... 44 FOR-SALE MARKET ANALYSIS ................................................................................. 48 Introduction ..................................................................................................................... 48 Home Resales .................................................................................................................. 48 Current Supply of Homes on the Market ........................................................................ 53 Actively Marketing & Recently Completed For-Sale Multifamily Housing Developments in the University District ......................................................................... 55 For-Sale Interviews Summary......................................................................................... 58 TABLE OF CONTENTS (continued) Page RENTAL MARKET ANALYSIS ..................................................................................... 60 Introduction ..................................................................................................................... 60 Overall Minneapolis Market Conditions ......................................................................... 60 Market Rate Properties .................................................................................................... 61 Student Oriented Properties ............................................................................................ 70 Affordable Properties ...................................................................................................... 73 Subsidized Properties ...................................................................................................... 74 SENIOR HOUSING ANALYSIS ..................................................................................... 77 Senior Housing Defined .................................................................................................. 77 Market Rate Senior Housing in the University District .................................................. 78 Market Rate Senior Housing in other Minneapolis Neighborhoods ............................... 78 Affordable and Subsidized Senior Housing .................................................................... 80 Senior Housing Near Comparable University Campus .................................................. 83 PLANNED AND PENDING SUMMARY ....................................................................... 89 Planned/Proposed Summary ........................................................................................... 89 HOUSING NEEDS ANALYSIS ....................................................................................... 93 Introductions ................................................................................................................... 93 General Occupancy Housing Needs Analysis................................................................. 93 Senior Housing Needs Analysis ...................................................................................... 97 ALUMNI SURVEY ........................................................................................................... 106 CONCLUSIONS AND RECOMMENDATIONS ........................................................... 109 Introduction ..................................................................................................................... 109 Challenges and Opportunities ......................................................................................... 119 APPENDIX ......................................................................................................................... 125 Alumni Survey Summary ................................................................................................ 126-158 Definitions ....................................................................................................................... 159-167 LIST OF TABLES Table Number and Title Page D-1 Population and Household Growth Trends, University District, 2000 through 2020 .. 11 D-2 Population Age Distribution, University District, 2000 to 2015 .................................. 14 D-3 Households by Size, University District, 2000 ............................................................. 17 D-4 Household Type, University District, 2000 .................................................................. 18 D-5 Household Income by Age of Householder, Cedar Riverside, 2000 to 2015 ............... 20 D-6 Household Income by Age of Householder, Como, 2000 to 2015 ............................... 21 D-7 Household Income by Age of Householder, Marcy-Holmes, 2000 to 2015 ................ 22 D-8 Household Income by Age of Householder, Prospect Park, 2000 to 2015................... 23 D-9 Household Tenure, University District, 2000 to 2010 .................................................. 27 D-10 Tenure by Household Income, University District, 2000 ............................................. 27 D-11 Tenure by Age, University District, 2000 ..................................................................... 29 D-12 Consumer Neighborhood Tapestry Profiles, University District, 2010 ........................ 32 H-1 Age of Housing Stock, University District, 2000 ......................................................... 35 H-2