2. HRSR 06-05-2017 - Laserfiche WebLink

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EXECUTIVE SUMMARY Senior Housing Market Analysis • There are eight senior housing facilities located in Elk River with a total of 412 units. There were three vacant rental units and one ownership unit for sale at the time of the survey. This equates to a vacancy rate of 1.0 %. This indicates a need for additional senior housing units. • Guardian Angels by the Lake are the only facility that offers senior housing with services. The development contains 60 assisted living units and 30 memory care units. The recent expansion absorbed quickly and the units have remained steadily occupied. For -Sale Housing Market Analysis The average and median resale price of homes in Elk River was approximately $216,840 and $209,975 respectively as of June 2015. The median sales price over the last decade peaked in 2005. From 2005 to 2011, median sales prices have declined by 44 %. Since 2011, the median sale price has recovered increasing by 59% through June 2015. • Home sales have remained relatively steady in Elk River with an average of roughly 400 homes annually in Elk River since 2010. Considering that Elk River has a supply of nearly 6,500 owned homes in 2010, this represents turnover of almost 6% of the owned homes annually. The median list price of homes for sale in Elk River was about $245,960 in June 2015. Based on a median list price of $245,960, a household would need an income of about $63,225 in order to afford to make monthly housing payments of about $1,245 (assuming a 10% down payment, 3.75% 30 -year fixed mortgage). A household with significantly more equity (in an existing home and /or savings) could put more than 10% down and afford a higher priced home. About 67.8% of Elk River households have annual incomes at or above $63,225. As of July 2015, Elk River had a total of nearly 200 vacant lots within 25 subdivisions. All of the subdivisions were platted between 2000 and 2014. Only 3% of Lots were platted after 2010. • The lot supply benchmark for growing communities is a three- to five -year lot supply. This supply of lots is appropriate as it provides adequate consumer choice but minimizes developers' carrying costs. Given the number of existing platted lots and the annual absorption of single - family lots over the past few years, we conclude that Elk River is currently just under a three -year lot supply indicating the need for additional platted lots. MAXFIELD RESEARCH & CONSULTING, LLC.