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ASSOCIATION from D1 sure on some of the towel- '—
<br /> volume
<br /> volume and lower-market
<br /> National group sees no rise builders," Plekkenpol said.
<br /> "They're getting squeezed on
<br /> ey
<br /> in association-type housing have allsm rllercostlchunk ofecausef the
<br /> 410 pie and have limited ways to ,
<br /> "The townhouse and to $350,000, and about 40 to deal with it other than passing
<br /> townhome and condonrini- 50 percent of those buyers are along to the consumer, and
<br /> urns have taken over in this 55 or older,he said. that's not a very good choice."
<br /> marketplace fur the first-time Most builders say the tiend
<br /> home buyer,"said Bob Swan- toward multi-family housing
<br /> ick,regional vice president for Quiller response hasn't hurt them or the single-
<br /> Wayzata-based Orrin T'homp- Unlike Hanson,whose An- family market, but it means
<br /> son Homes. "That basically dover-based company changing.
<br /> has been driven by the price typically builds 60 homes a "It has forced a change in
<br /> of land." year, Orrin Thompson is a our company," Hanson said.
<br /> Builders say they're just "market builder," construct- Townhouse projects usually
<br /> following demand. ing 400 to 500 homes a year. ate set up in planned unit de-
<br /> "Builders are going to build The percentage that are town- velopments. "When you sub-
<br /> what's going to sell,and this is houses has increased from 32 mit those to a city and the city
<br /> the kind of package that's percent in 2000 to about 40 approves the project, they're
<br /> working — having that land percent now, Swanick said. approving a specific structure
<br /> he a smaller piece of the pie," The trend toward association for that specific piece of land,"
<br /> said Craig Plekkenpol, ptesi- housing is becoming "more he said.
<br /> dent of the Builders Associa- dramatic as the price of land Although buyers can
<br /> Bon of the Twin Cities. Homme has escalated,"he said. choose different amenities in-
<br /> buyers are price-sensitive, he The National Association side, they cannot change the
<br /> said, and "a fairly small in- of Home Builders, however, structure. "For a custom
<br /> crease in the price of a home sees no association-housing builder, that's a big change,"
<br /> takes a fairly large number of surge across the nation. 1-Ianson said.
<br /> buyers out of new homes." That might be because There's a positive angle,
<br /> Rising prices for existing land prices elsewhere aren't Hanson said:making builders
<br /> homes also have boosted "skyrocketing as they ate much more careful to meet
<br /> association-unit sales. The bet e," said I-Ians Hagen, the market's desires.
<br /> median price of closed hone whose Hans Hagen Homes in "There are economies of '
<br /> sales in April was $179,000, Fridley has built association scale when you are producing ,
<br /> meaning half sold for more, housing for 20 years one type of unit in one il" loca-
<br /> half for less "That's up 22 per A jump in the number of tion,"Ilagen said. "Putting up
<br /> cent from April 2000, when units pet building permit be- 111 or more association units,
<br /> the median was$146,950. gam last year. Through the you're better able to provide
<br /> For new homes, there's an 1 990s and 2000, the number more house for the same
<br /> increasing price difference of units planned per permit money. That leads to higher
<br /> between the lowest-priced ranged from 1.2 to 1.43, the profits,lower prices or both."
<br /> single-family home and a Twin Cities association said. Market builders are accus-
<br /> townhouse,Swanick said. Last year, that ratio widened tomed to adapting.
<br /> "live years ago,you proba- to 1.53 units per permit, and "That's the key factor to be-
<br /> lily were looking at a spread of through April this year, it is ing successful," Swanick said.
<br /> $20,001) or $30,000," he said. 1 76. That suits builders and "We don't create the market,
<br /> "That spread has increased to the Metropolitan Council, we supply the market"
<br /> well over$50,000." who share the goal of higher- Hanson used his associa-
<br /> (hrin Thompson is build- density housing. tion project in Brooklyn Park
<br /> ing most townhouses at to illustrate land use. Its 56
<br /> $140,000 to$200,000,Swanick Need for housing single-family detached units
<br /> said, but sells some for as occupy only 14.5 acres, yet
<br /> much as $400,000. Its single- The council expects the each household "can plant a
<br /> homily homes start at around seven-county metro area to little garden behind their
<br /> $200,000. gain nearly 1 million people house."For traditional single-
<br /> Hanson's single-family by 2030, creating a gap of family homes, "it's not un-
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