7.3 HRSR 01-04-2016 - Laserfiche WebLink

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RENTAL MARKET ANALYSIS Introduction Maxfield Research and Consulting LLC identified and surveyed larger rental properties of 16 or more units in the Elk River. In addition, interviews were condu developers, rental housing management firms, and others in the c Rivers rental housing stock. For purposes of our analysis, we have classified rental projects into two groups, general occupancy and senior (age restricted). All senior projects are Senior Rental Analysis section of this report. The general occupancy rental projects a groups, market rate (those without income restrictions), affordable, (those r in order to keep rents affordable), and subsidized (those with i allocation of income to housing). General-Occupancy Rental Projects Our research of Elk Rivers general occupancy rental market included22 apartment properties (16 units and larger) in October 2015. These projects represent a combined total of 931 units, including 633 market rate units and 298 affordable/subsidized units. At the t our survey, 45 market rate units and one affordable/subsidized units were vacant, resulting in an overall vacancy rates of 7.1% for market rate units and 1.3% for affordable/subsidized. It is important to note however, that 28 of the 45 market rate vacancies are located within Elk Park Estates which has changed ownership and management. Excluding t decreases the vacancy rate to 3.0%. We were unable to gather complete information forthe propertyof Elk Ridge Estates. The overall market rate vacancy rate of 5.3%, excluding Elk Park Estates drops the vacancy rate to 2.4% which is lower than the industry standard of 5% vacancy for a stabiliz which promotes competitive rates, ensures adequate choice, and a The pent-up market indicates a possible need of additional rental housing the rental market: low-income, moderate-income, and market rate. Table RMA-1 summarizes information on general occupancy projects surveyed. The following a survey of these developments. Market Rate Granite Shores, converted to rental in 2012, is the newest marke building built in nearly 20 years. Granite Shores contains a total of 67 units and was originally built as a for-sale condominium in 2006, but struggled to sell units and went i foreclosure. Granite Shores has the highest rents in Elk River, at $1,129 to $1,589 per month for one-bedroom units, $1,299 to $1,539 per month for one-bedroom plus Den units, and $1,429 per month for two-bedroom units. The monthly rents are about 40% to 41 MAXFIELD RESEARCH & CONSULTING, LLC.