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RECOMMENDATIONS AND CONCLUSIONS <br />General Occupancy Rental Housing <br /> <br />Our competitive inventory identified that the vacancy rates for <br />rental product is below market equilibrium indicating pent-up demand for rental housing. The <br />few newer products that have entered the market in the past few rs have all performed <br />well. Coachman Apartments which began marketing in 2015 has abs <br />occupancy date. Due to the age and positioning of the remaining existing rental - <br />1990 construction), a significant portion of units arepriced at or below guidelines for affordable <br />housing, which indirectly satisfies demand from households that -qualify for financially <br />assisted housing. However, the growing renter base is seeking newer rental propert <br />additional and updated amenities that are not offered in older developments. Although <br />ownership housing in older homes in Elk River is generally affordable for first-time home <br />buyers, some are choosing to rent due to fears of past housing m <br /> <br />Maxfield Research and Consulting LLC calculated demand for 265 market rate and 133 <br />affordable rental housing units in Elk River through 2025. New general-occupancy rental <br />housing can be developed immediately and will continue to be in <br />decade. <br /> <br />Market Rate RentalThe existing market rate rental supply in Elk River has a mix of <br />and household types represented. A new rental project will also <br />profile, including young to mid-age professionals as well as singles and couples across the <br />age span. <br />Because there is demand for 265 units; new market rate product w <br />across multiple buildings and developments. We recommend new middle-market to upper- <br />middle market rental project(s) with roughly that will continue to attract a diverse resident <br />profile; including young to mid-age professionals as well as singles and couples across all <br />ages. To appeal to wide target market, we suggest a market rate <br />unit mix consisting of one-bedroom units, one-bedroom plus den units, two-bedroom units, <br />and a few two-bedroom plus den or three-bedroom units. <br /> <br />Monthly rents (in 2015 dollars) should range from $950 for a one-bedroom unit to $1,450 <br />for a three-bedroom unit. Average rents in Elk River are roughly $1.04 per <br />we recommend that monthly rents at a new development should char <br />per square foot to be financially feasible. Monthly rents can <br />annually prior to occupancy to account for inflation depending on o <br />conditions. <br />New market rate rental units should be designed with contemporar <br />open floor plans, higher ceilings, in-unit washer and dryer, full appliance package, central <br />air-conditioning, and garage parking. <br />107 <br />MAXFIELD RESEARCH & CONSULTING, LLC <br /> <br />