INFORMATION HRSR 03-24-2003 - Laserfiche WebLink

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City of Elk River Housing Plan Updated January 2003 • Single Family Housing and Vacant Lots According to the 2000 Census, approximately 78.3% of the community's housing stock is owner-occupied. The vacancy rate for homeowners is even lower than the rental vacancy rate at 1.4% according to the 2000 Census. Vacancy rates drop even more dramatically for the remainder of the study area with the City of Otsego having a vacancy rate of 0.5%. The Minnesota Department of Revenue produces data on the median sales price of existing homes for each County in the State. The following are median home sales prices in the County since 1984/1985: 1984/1985 $57,300 1989/1990 $67,500 1995/1996 $95,000 1998/1999 $118,900 1999/2000 $129,900 This includes data for existing homes only and does not include the sale of newly constructed homes. Since 1989/1990 the median sales price has increased $62,400, or 92%. In 1999/2000, Sherburne County had the ninth highest median sales price in the State of Minnesota. Median sales prices in the City of Elk River tend to be higher than the overall County sales prices. The following information was obtained from the City of Elk River on the number of • home sales in the City between 1997 and 2000. Since 1997, the median sales price in the City of Elk River has increased by 32%, which is an increase of over$30,000. Year Homes Sold Average Selling Price Median Sale Price 1997 253 $129,263 $120,900 1998 346 $139,470 $127,800 1999 340 $153,004 $142,559 2000 306 $174,820 $160,000 Interviews with area Realtors found that the average listing time for individual homes was approximately 60 days. Most existing homes in the community are ranging from $130,000 to $500,000. Newly constructed housing in the community is typically ranging from $165,000 to $600,000. Lots in the community are on average selling for$60,000 and above. A snapshot of the Multiple Listing Service also found similar data on the sale of homes in Elk River. Elk River had very few homes that were listed under$150,000 that would be considered affordable. To afford most of the homes that are listed at $200,000 or more a household would have to earn approximately $63,200 per year. All mortgage calculations found throughout the study are based on a 30-year mortgage at 7% interest with a 5% downpayment. With interest rates at 6%the income needed to afford this home would drop to approximately $57,000 and at 5% it would drop to approximately $51,000. 29