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HomeMy WebLinkAbout1844-03 Edina Comprehensive Housing Market Analysis Draft - FINAL Comprehensive Housing Market Analysis For The City of Edina, Minnesota Prepared For: City of Edina Edina, MN April 2020 7575 Golden Valley Road Suite 385 Minneapolis, MN 55427 612.338.0012 www.maxfieldresearch.com (main) 612-338-0012 (fax) 612-904-7979 7575 Golden Valley Road, Suite 385, Golden Valley, MN 55427 www.maxfieldresearch.com April 10, 2020 Mr. Scott Neal City Manager City of Edina 4801 West 50th Street Edina, MN 55424 Dear Mr. Neal: Attached is the Comprehensive Housing Market Analysis for Edina, Minnesota conducted by Maxfield Research and Consulting, LLC. The study projects housing demand from 2020 to 2040 and provides rec- ommendations on the amount and type of housing for Edina that could be built to satisfy housing needs from 2020 to 2040. The study identifies an estimated potential demand for 4,648 new housing units to 2025. Because the population is aging in Edina, we estimate that an estimated 76% of the total demand will be for age-re- stricted housing types. However, younger households are also seeking housing in Edina and have taken advantage of older properties. Demand for housing at entry-level and move-up properties is strong from non-senior buyers, but land scarcity and high development costs for traditional housing products remain barriers to creating new housing that will meet the needs of younger buyers. Condominium product may meet the needs of some younger and older buyers where the units can be built at high- density. There continues to be strong demand for infill new single-family construction, however this will continue to be expensive due to redevelopment and high land costs in the community. Demand for affordable housing for non-seniors and seniors is also in high demand and we recommend the development of these housing products in the short-term. Based on our findings, we found demand for most housing products with strong demand for affordable and market rate rental products. We rec- ommend more affordable rental developments including both shallow and deep subsidy products. At the same time demand exists for all senior housing products and service levels to meet the growing needs of an aging community. Detailed information regarding recommended housing concepts can be found in the Recommendations section at the end of the report. If you have any questions or need addi- tional information, please contact us. We have enjoyed conducting this study for you. Sincerely, MAXFIELD RESEARCH AND CONSULTING, LLC Mary Bujold Andrew McIntyre President Associate Attachment TABLE OF CONTENTS Page EXECUTIVE SUMMARY...................................................................................................... 1 DEMOGRAPHIC ANALYSIS ................................................................................................ 7 Introduction ................................................................................................................. 7 Definition of Primary Market Area ............................................................................... 7 Population & Household Growth Trends & Projections from 2000 to 2040 .................. 8 Age Distribution Trends ................................................................................................ 11 Median Household Incomes by Census Tract ................................................................ 15 Household Income by Age of Householder ................................................................... 17 Net worth ..................................................................................................................... 25 Tenure by Household Income ....................................................................................... 26 Tenure by Age of Householder ..................................................................................... 29 Household Type ............................................................................................................ 31 Tenure by Household Size ............................................................................................ 33 Diversity ....................................................................................................................... 35 Mobility in the Past Year ............................................................................................... 37 Summary of Demographic Trends ................................................................................. 39 EMPLOYMENT .................................................................................................................. 41 Introduction ................................................................................................................. 41 Employment Growth Trends & Projections ................................................................... 41 Resident Labor Force and Workplace Employment ....................................................... 42 Employment, Earnings & Employment by Educational Attainment ............................... 46 Commuting Patterns..................................................................................................... 49 Inflow/Outflow ............................................................................................................. 50 Major Employers .......................................................................................................... 52 HOUSING CHARACTERISTICS ............................................................................................ 54 Introduction ................................................................................................................. 54 Residential Construction Trends 2010 through 2019 .................................................... 54 Housing Replacements ................................................................................................. 56 American Community Survey ....................................................................................... 58 Age of Housing Stock .................................................................................................... 58 Housing Units by Structure & Occupancy or (Housing Stock by Structure Type) ............ 61 Owner Occupied Housing Units by Mortgage Status ..................................................... 61 Owner-Occupied Housing Units by Value...................................................................... 62 Renter-Occupied Units by Asking Rent.......................................................................... 64 TABLE OF CONTENTS (continued) Page FOR-SALE HOUSING ANALYSIS.......................................................................................... 65 Introduction ................................................................................................................. 65 Median Home Values by Census Tract .......................................................................... 65 Home Resales in Edina & Surrounding Communities .................................................... 67 Overview of For-Sale Housing Conditions ..................................................................... 69 Single Family & Multifamily Resales by Price Point ....................................................... 73 Current Supply of Homes on the Market ...................................................................... 75 New Construction and Active Listings by Price Point ..................................................... 76 For-Sale Multifamily Homes.......................................................................................... 82 Home Resales Per Square Foot (“PSF”) ......................................................................... 85 Actively Marketing Subdivisions ................................................................................... 89 Edina Neighborhoods ................................................................................................... 89 School Districts ............................................................................................................. 95 Summary of For Sale Market Conditions ....................................................................... 99 RENTAL MARKET ANALYSIS .............................................................................................. 101 Introduction ................................................................................................................. 101 Overview of Rental Market Conditions ......................................................................... 101 General Occupancy Rental Properties ........................................................................... 108 Natural Occurring Affordable Housing (i.e. Unsubsidized Affordable) ........................... 125 Multifamily Affordable Housing Policy .......................................................................... 136 Rental Licensing Ordinance ........................................................................................... 136 Housing Choice Vouchers ............................................................................................. 137 Summary of Rental Market Conditions ......................................................................... 138 SENIOR HOUSING ANALYSIS ............................................................................................. 140 Senior Housing Defined ................................................................................................ 140 Senior Housing in Edina ................................................................................................ 141 Summary of Senior Housing Analysis ............................................................................ 149 PENDING RESIDENTIAL DEVELOPMENTS .......................................................................... 151 Pending Residential Developments............................................................................... 151 HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS ..................... 155 Housing with Special Services ....................................................................................... 155 Edina Disabilities Overview ........................................................................................... 155 Overview of Homelessness in Hennepin County ........................................................... 157 Summary of Homelessness in Hennepin County ........................................................... 161 Edina & Nearby Communities: Emergency & Supportive Housing by Type .................... 162 Summary of Emergency & Supportive Housing by Type in Edina & Neighboring Communities ................................................................................................................ 170 TABLE OF CONTENTS (continued) Page HOUSING AFFORDABILITY ................................................................................................ 171 Introduction ................................................................................................................. 171 Rent and Income Limits ................................................................................................ 172 Housing Cost Burden .................................................................................................... 175 Housing Programs ........................................................................................................ 178 Housing Choice Vouchers ............................................................................................. 180 Housing Costs as Percentage of Household Income ...................................................... 180 Metropolitan Council Affordable Housing Criteria & Benchmarks ................................. 183 HOUSING DEMAND ANALYSIS .......................................................................................... 185 Introduction .................................................................................................................. 185 Demographic Profile and Housing Demand ................................................................... 185 Housing Demand Overview ........................................................................................... 186 Estimated Demand for For-Sale Housing ....................................................................... 190 Estimated Demand for General Occupancy Rental Housing ........................................... 195 Demand for Active Adult (55+) Services Senior Housing ................................................ 199 Demand for Subsidized/Affordable Independent Senior Housing .................................. 202 Demand for Independent (Congregate) Senior Housing ................................................ 206 Demand Estimate for Assisted Living Housing ............................................................... 209 Demand for Memory Care Housing ............................................................................... 214 RECOMMENDATIONS AND CONCLUSIONS ....................................................................... 219 Introduction/Overall Housing Recommendations ......................................................... 219 Housing Recommendations/Gaps ................................................................................. 222 CHALLENGES AND OPPORTUNITIES .................................................................................. 229 HOUSING PROGRAMS ...................................................................................................... 235 APPENDIX ......................................................................................................................... 239 Senior Housing Properties ............................................................................................ 240 Definitions .................................................................................................................... 245 MAPS Page Primary Market Area ......................................................................................................... 7 City of Edina 2019 Median Household Income by Census Tract ......................................... 16 Edina Employment Inflow/Outflow ................................................................................... 51 City of Edina 2019 Median Home Values by Census Tract .................................................. 66 Edina City Neighborhoods ................................................................................................. 90 Edina City & School District Boundaries ............................................................................. 95 Edina and Nearby Community High Schools ...................................................................... 96 City of Edina Affordable Housing Sites ............................................................................... 135 Edina Pending Rental & For Sale Developments ................................................................ 153 Emergency Shelters in Hennepin County ........................................................................... 162 Transitional Housing Facilities in Edina’s Neighboring Communities .................................. 163 Permanent Supportive Housing in Edina & Neighboring Communities .............................. 165 Treatment Facilities & Halfway Houses in Edina’s Neighboring Communities .................... 168 Come Home 2 Edina Program Eligible Areas Map .............................................................. 179 LIST OF TABLES Table Number and Title Page D1. Population and Household Growth Trends and Projections, Edina Market Area, 2000 to 2040 ................................................................................................... 10 D2. Population Age Distribution, Edina Market Area, 2000 to 2040 (Revised) ................. 13 D3. Household Income by Age of Householder, Edina, 2019 & 2024 ............................... 20 D4. Household Income by Age of Householder, Remainder of PMA, 2019 & 2024 .......... 22 D5. Household Income by Age of Householder, Hennepin County, 2019 & 2024 ............ 23 D6. Household Income by Age of Householder, Twin Cities Metro, 2019 & 2024 ............ 24 D7. Estimated Net Worth by Age of Householder, Edina Market Area, 2019................... 26 D8. Tenure by Household Income, Edina Market Area, 2019 .......................................... 28 D9. Tenure by Age of Householder, Edina Market Area, 2010 & 2019............................. 30 D10. Household Type, Edina Market Area, 2010 & 2019 ................................................... 32 D11. Tenure by Household Size, Edina Market Area, 2010 & 2019 .................................... 34 D12. Population Distribution by Race, Edina Market Area, 2010 & 2019 ........................... 36 D13. Mobility Estimate in the Past Year by Age for Current Residence, Edina, 2019 ......... 38 E1. Employment Growth Trends and Projections, Edina, Hennepin Co. and Twin Cities Metro Area, 2000-2040 ............................................................................................ 41 E2. Annual Average Resident Employment, Edina, MN, 2010 through 2019 ................... 43 E3. Covered Employment Trends, Edina, MN, 2000, 2005, 2010, 2015, 2019* ............... 45 E4. Employment By Earnings, City of Edina 2017 ............................................................ 47 E5. Employment By Educational Attainment, City of Edina, 2018 ................................... 47 E6. Business Summary - By Industry Sector, 2nd Quarter 2019....................................... 48 E7. Commuting Patterns, City of Edina, 2017 ................................................................. 49 E8. Commuting Inflow/Outflow Characteristics, City of Edina, 2017 ............................... 49 E9. Major Employers, City of Edina, 2019 ....................................................................... 52 HC1. Residential Construction Building Permits Issued, City of Edina, 2010 through 2019 (per Metropolitan Council) .............................................................................. 54 HC2. Residential Construction Building Permits Issued, Edina & PMA Cities, 2010 to 2019 ................................................................................................................. 55 HC3. Housing Tear Down Data, City of Edina, 2008 Through 2018 ..................................... 57 HC4. Age of Housing Stock, Edina, Hennepin County & Twin Cities Metro Area, 2019 ....... 60 HC5. Housing Units by Structure & Tenure, Edina, Hennepin County & Twin Cities Metro Area, 2019 ................................................................................................................ 61 HC6. Owner-Occupied Housing Units by Mortgage Status, Edina, Hennepin County & Twin Cities Metro Area, 2019 ................................................................................... 62 HC7. Owner-Occupied Units by Value, Edina, Hennepin County & Twin Cities Metro Area, 2019 ................................................................................................................. 63 HC8. Renter-Occupied Units by Contract Rent, Edina, Hennepin County & Twin Cities Metro Area, 2019 ................................................................................................................ 64 LIST OF TABLES (continued) Table Number and Title Page FS1. Median Resale Price by Community, Edina & Nearby Communities 2010 through 2019* ....................................................................................................................... 68 FS2. Home Resales, Edina, MN, 2010 Through 2019 ........................................................ 71 FS3. Single-Family and Owned Multifamily Residential Resales, Edina, MN, 2010 through 2019 ......................................................................................................................... 72 FS4. Resales by Price Point, Edina, MN, January 1 through September 2019 .................... 74 FS5. Homes Currently Listed For-Sale, January 1 to October 6, 2019 ................................ 75 FS6. Household Income Needed to Afford New/Previously Owned Single & Multifamily Median Property Prices, Edina, MN, January 1 to October 6, 2019 ........................... 76 FS7. Active Listings by Housing Type, Edina, MN, January 1 to October 6, 2019 ............... 78 FS8. Single-Family Active Listings by Housing Type, Edina, January 1 to October 6, 2019.. 79 FS9. Active For-Sale Multifamily Housing Listings, Edina, Jan 1 to Oct 11, 2019 ................ 83 FS10. Average & Median Sales Price Per Square Foot (PSF), Edina & Twin Cities Metro Area, 2013 to 2019…………………………………………………………………………………………………………... 86 FS11. Median Sales Price Per Square Foot (PSF), Existing Home vs. New Construction, Edina & Twin Cities Metro Area, 2013 to 2019……………………………………………………………………… 87 FS12. Edina City Neighborhoods……………………………………………………………………………………….. 89 FS13. Edina & Neighboring Communities: High School Rankings……………………………………….. 98 R1. Average Rents/Vacancies Trends, Edina, Surrounding Communities, & Twin Cities Metro, 3rd Quarter 2018 & 3rd Quarter 2019 ............................................................. 102 R2. Bedrooms by Gross Rent, Renter-Occupied Housing Units, Edina Analysis Area, 2017 ......................................................................................................................... 107 R3. Market Rate General Occupancy Rental Properties by Year Built, City of Edina, November 2019 ........................................................................................................ 110 R4. Surveyed Unit Type Summary, Select General Occupancy Rental Properties, Built 2000 or later, November 2019 .................................................................................. 113 R5. Surveyed Unit Type Summary, Select General Occupancy Rental Properties, Built 1980 to 1999, November 2019 ................................................................................. 114 R6. Surveyed Unit Type Summary: Select General Occupancy Rental Properties, Built Prior to 1980, November 2019 ................................................................................. 115 R7. Market Rate General Occupancy Rental Properties, City of Edina, November 2019 .. 117 R8. Shallow Subsidy & Deep Subsidy General Occupancy Rental Properties, City of Edina, November 2019 ........................................................................................................ 122 R9. Maximum Rent Based on Household Size & Area Median Income, Hennepin County, 2019 ......................................................................................................................... 127 R10. Multifamily Market Rate Rental Developments, Naturally Occurring Rental Housing, Market Rate Rental Properties (Constructed 2000 or Later), City of Edina, November 2019 ........................................................................................................ 128 R11. Multifamily Market Rate Rental Developments, Naturally Occurring Rental Housing, Rental Properties Constructed from 1980 through 1999, Edina, November 2019 ..... 129 LIST OF TABLES (continued) Table Number and Title Page R12. Multifamily Market Rate Rental Developments, Naturally Occurring Rental Housing, Rental Properties Constructed Prior to 1980, Edina, November 2019 ....................... 130 R13. Multifamily Market Rate Rental Developments, Naturally Occurring Summary, Properties Built After 2000 or Later, City of Edina, November 2019.......................... 132 R14. Multifamily Market Rate Rental Developments, Naturally Occurring Summary, Properties Built 1980 to 1999, City of Edina, November 2019 ................................... 133 R15. Multifamily Market Rate Rental Developments, Natural Occurring Summary, Properties Built Prior to 1980, City of Edina, November 2019 ................................... 134 S1. Surveyed Unit Type Summary, Senior Housing Properties, Edina, December 2019 ... 146 PR1. Pending Market Rate & Affordable General Occupancy Rental Developments, City of Edina, January 2020........................................................................................ 154 HS 1. Disability by Type, Edina and Twin Cities Metro Area, 2019 ...................................... 155 HS 2. Disability, Edina and Twin Cities Metro 2019 ............................................................ 157 HS 3. Number of Homeless, Hennepin County, MN, 2018.................................................. 158 HS 4. Homeless Age Distribution, Hennepin County & Twin Cities Metro Area*, 2018....... 159 HS 5. Monthly Income of the Homeless Surveyed, Hennepin County & Twin Cities Metro Area, 2019 ..................................................................................................... 160 HS 6. Barriers to Employment for Homeless, Hennepin County & Twin Cities Metro Area, 2019 ......................................................................................................................... 161 HS 7. Permanent Supportive Housing, Edina, Minnesota, & Nearby Communities, October 2019 ........................................................................................................... 164 HS 8. Treatment Facilities & Halfway Houses, Edina, MN, & Nearby Communities, October 2019 ........................................................................................................... 167 HA1. MHFA/HUD Max Income and Rent Limits, Minneapolis-St Paul-Bloomington, MN-WI MSA*, 2019 .................................................................................................. 173 HA2. Maximum Rent Based on Household Size and Area Median Income, Minneapolis- St Paul-Bloomington, MN-WI MSA, 2019* ................................................................ 174 HA3. Housing Cost Burden, Edina, PMA Remainder, & Twin Cities Metro Area, 2019........ 176 HA4. Edina Housing Affordability – Based on Household Income ...................................... 182 HA5. Metropolitan Council Affordable Housing Allocation, 2021 to 2030 ......................... 184 LIST OF TABLES (continued) Table Number and Title Page HD1. For-Sale Housing Demand, Edina, 2020 to 2025 ....................................................... 192 HD2. For-Sale Housing Demand, Edina, 2025 to 2030 ....................................................... 193 HD3. For-Sale Housing Demand, Edina, 2030 to 2040 ....................................................... 194 HD4. Rental Housing Demand, Edina, 2020 to 2025 .......................................................... 196 HD5. Rental Housing Demand, Edina, 2025 to 2030 .......................................................... 197 HD6. Rental Housing Demand, Edina, 2030 to 2040 .......................................................... 198 HD7. Market Rate Active Adult/Few Services Housing Demand, Edina, 2020 & 2025 ........ 200 HD8. Market Rate Active Adult/Few Housing Demand, Edina, 2025 & 2030 ...................... 201 HD9. Market Rate Active Adult/Few Housing Demand, Edina, 2030 & 2040 ...................... 202 HD10. Deep Subsidy/Shallow Subsidy Active Adult Housing Demand, Edina, 2020 & 2025 ........................................................................................................... 204 HD11. Deep Subsidy/Shallow Subsidy Active Adult Housing Demand, Edina, 2025 & 2030 ........................................................................................................... 205 HD12. Deep Subsidy/Shallow Subsidy Active Adult Housing Demand, Edina, 2030 & 2040 ........................................................................................................... 206 HD13. Market Rate Independent (Congregate) Rental Housing Demand, Edina, 2020 & 2025 ........................................................................................................... 207 HD14. Market Rate Independent (Congregate) Rental Housing Demand, Edina, 2025 & 2030 ........................................................................................................... 208 HD15. Market Rate Independent (Congregate) Rental Housing Demand, Edina, 2030 & 2040 ........................................................................................................... 208 HD16. Market Rate Assisted Living Demand, Edina, 2020 & 2025 ...................................... 211 HD17. Market Rate Assisted Living Demand, Edina, 2025 & 2030 ...................................... 212 HD18. Market Rate Assisted Living Demand, Edina, 2030 & 2040 ...................................... 213 HD19. Market Rate Memory Care Demand, Edina, 2020 & 2025 ....................................... 215 HD20. Market Rate Memory Care Demand, Edina, 2025 & 2030 ....................................... 216 HD21. Market Rate Memory Care Demand, Edina, 2030 & 2040 ....................................... 217 CR1. Summary of Housing Demand, Edina, MN, January 2020 .......................................... 219 CR2. Recommended Housing Development, City of Edina, 2020 to 2040 .......................... 221 A-3 Senior Housing Properties, Edina, November/December 2019 ................................. 240 EXECUTIVE SUMMARY MAXFIELD RESEARCH AND CONSULTING, LLC 1 Purpose and Scope of Study Maxfield Research and Consulting LLC (i.e. “Maxfield Research”) was engaged by the City of Edina to conduct a Comprehensive Housing Needs Analysis. Unless otherwise stated, the use of the word Edina shall be defined as the municipality. The Housing Market Study provides rec- ommendations on the amount and types of housing that could be developed in order to meet the needs of current and future households who choose to reside in Edina. The scope of this study includes: an analysis of the demographic and economic characteristics of the City; a review of the characteristics of the existing housing stock, building permit trends, and residential land supply; an analysis of the market condition for a variety of rental and for- sale housing products; and an assessment of the need for housing by product type in the City. Recommendations on the number and types of housing products that should be considered in the City are also supplied. Data for this report was compiled using many sources of information including regional, state and federal agencies, national demographics providers, local and na- tional housing databases, one-on-one interviews, and field work. A list of data sources is pro- vided in the Appendix. Secondary data from published sources included in the analysis is the most recent available for the components presented, but not all data sources compile and present information for the same years at the same time. Therefore, information presented in each section from these sources may represent different timelines. All secondary data sources and timeframes are identified. Demographic Analysis • As of 2020, Edina is estimated to have 53,700 people and 23,500 households. Edina is fore- cast to grow by 4,200 people and 2,500 households between 2020 and 2030 and by another 1,700 people and 1,200 households between 2030 and 2040. • From 2020 to 2040, the number of people is expected to increase in all age categories in Edina except for those between the ages of 45 to 54 which is expected to decrease by 348 people. • Edina had an estimated median household income of $107,757 in 2019 and the Remainder of the Primary Market Area (PMA) had a median household income of $100,686. Non-sen- ior household median incomes peak in the 45 to 54 age group at $188,095 for Edina and $135,324 for the Remainder of the PMA. The median income for Edina senior households age 65 to 74 is $93,113 and for 75+ is $52,561. EXECUTIVE SUMMARY MAXFIELD RESEARCH AND CONSULTING, LLC 2 • Between 2010 and 2019, homeownership rates decreased from 74.9% to 72.3% in Edina. The decline is primarily a result of an increase in renter households due to the housing mar- ket slowdown during the recession and an increase in the number of lender-mediated prop- erties which shifted more households toward rental housing. • Households living alone accounted for the largest proportion of households as of 2019 at 31.5%, followed by married couples without children at 28.7%. Married couples with chil- dren increased to 25.8% as of 2019, from 24.0% in 2010. Employment Analysis • As of the 2nd Quarter of 2019, there were 44,899 jobs in Edina, accounting for 5.6% of all jobs in Hennepin County and 2.6% of all jobs in the Twin Cities Metro Area. In 2020, Edina is forecast to have 45,544 jobs, which proportion would have decreased to 4.8% of all jobs in Hennepin County and 2.5% of all jobs in the Twin Cities Metro Area. • Almost one quarter (24.2%) of Edina employees work in the Health Services sector. The second highest sector employment sector is Professional and Business Services (11.2%). • Edina, Hennepin County and the Twin Cities Metro Area all had unemployment rates of 2.9% through August 2019, which rate was slightly lower than the State of Minnesota aver- age (3.0%). • Of the 43,771 workers estimated to work in Edina as of 2017, 6.6% (2,873) also lived in Edina. Most workers commuted to Edina from Minneapolis (12.6%), Bloomington (5.9%), St Paul (4.5%) and Eden Prairie (4.3%). Housing Characteristics • Per the City of Edina, 2,816 units were permitted from 2000 through September 2019. Be- tween 2010 and September 2019, the highest numbers of residential permits were issued in 2016 (57), 2014 (55) and 2015 (54). The year with the fewest permits issued was 2010 (18). • An estimated 35% of Edina’s housing stock was built before the 1950s, 59% was built be- tween 1950 and 1980, 10% was built in the 1990s and 2000s and 4% was built 2010 or later. • As of 2019, 66% of Edina homeowners had a mortgage compared to 72% of Hennepin County and 72% of the Metro Area. An estimated 15% of homeowners with mortgages also had a second mortgage or home equity loan. • The median owner-occupied home value in Edina was estimated at $465,000 in 2019. Ap- proximately 40% of the owner-occupied housing stock in Edina was estimated to be valued at $500,000 or higher. EXECUTIVE SUMMARY MAXFIELD RESEARCH AND CONSULTING, LLC 3 • The median rent in Edina was estimated at $1,586 in 2019. Based on a 30% allocation of in- come to housing, a household would need an income of $63,440 to afford the median rent in Edina. For-Sale Housing Market Analysis • The Edina home resale price was lowest in 2011 when it decreased to $339,900. Between 2011 and 2017, the median resale value increased 30% ($102,725). The median home re- sale value in 2018 was $440,500, a decrease of -0.5% from 2017 ($443,625). Through Sep- tember 30, 2019, the median resale price was $465,000, an increase of 5.6% from 2018 ($440,500). • The number of resales in Edina averaged 801 homes annually from 2010 through 2019. The fewest number of resales occurred after the recession in 2010 with 617 resales; while 2017 established a new high in Edina of 952 resales. • Compared to the Metro Area average, lender-mediated properties (i.e. short sales and fore- closures) in Edina were generally less than Metro Area during the recession. As of 2019, lender-mediated properties accounted for less than 1% (0.8%) of resales in Edina. • Single-family homes accounted for 63% of the resale sales volume in Edina as of September 30, 2019. Multifamily for-sale housing products are more affordable and are priced about 30% lower than single-family homes. • The average price of an existing single-family home in Edina is about 30% less than the cost of new construction. The average cost of an existing single home in Edina is higher than in Hennepin County ($215 "PSF vs. $159 PSF); new construction costs in Edina have recently escalated much higher than Hennepin County averages ($308 PSF vs. $184 PSF). Rental Housing Market Analysis • Maxfield Research inventoried 4,654 market rate general occupancy rental units in Edina, which properties had 184 vacancies resulting in an overall vacancy rate of 4.0% among all rental properties. Excluding properties in their initial lease-up periods, the vacancy rate drops to 2.8%. Typically, a healthy rental market maintains a vacancy rate of roughly 5.0%, which promotes competitive rates, ensures adequate consumer choice, and allows for unit turnover. A stabilized vacancy rate of 2.8% indicates a need for additional market rate rental units. • Affordable rental properties have a total of 43 units. Of these, one property is still in initial lease-up, Nolan Mains. Excluding that property, affordable units had a vacancy rate of 3%. EXECUTIVE SUMMARY MAXFIELD RESEARCH AND CONSULTING, LLC 4 • Edina has two deep subsidy properties, Yorkdale Townhomes and Oak Glen, both of which were fully occupied with waiting lists. Housing with Support Services and Homeless • Of Edina’s 53,124 people, 9.2% or 4,882, are estimated to have a disability. By comparison, of the 3.1 million people that comprise the Twin Cities Metro Area, 9.8% have a disability. • The percentage of those with disabilities is highest among people age 65+ in Edina and the Twin Cities Metro Area. In addition, the percentage of those disabled is higher in all age categories in the Twin Cities Metro Area than in Edina. • In 2018, 55% of homeless in Hennepin County were in emergency shelters, 21% were in transitional housing, 3.8% were in domestic violence shelters and 0.7% were in rapid re- housing. Figures are compiled in the Twin Cities Metro Area by county by Wilder Research, a private foundation. • According to the Wilder 2018 homeless study findings, a survey of the homeless in Henne- pin County identified the following as the top five barriers to employment: in order were physical health, mental/chemical health, transportation, housing and lack of resources needed to work or look for work. By comparison, the greatest barriers to employment in the Twin Cities Metro Area were essentially the same, but transportation was listed higher in the ranking as there are fewer public transit options outside of Hennepin and Ramsey Counties in the Metro Area. Housing Affordability • Hennepin County’s Fair Market Rents increased 6% from an average of $1,205 in 2018 to an average of $1,278 in 2019, demonstrating that market rents have also increased dramati- cally. • Of Edina’s owner households, 22% are cost burdened (pay 30% or more of their income for housing costs). Most owner households that are cost-burdened are age 65 or older. The proportion of cost burdened owner households in Edina (22%) is higher than the Twin Cities Metro Area (20%) and Remainder of the PMA (17%). • Of Edina’s renter households, 42% are cost burdened (pay 30% or more of their income for housing costs). The proportion of Edina’s cost burdened renter households (42%) is higher than the Primary Market Area (37%), but modestly lower than the Twin Cities Metro Area (43%). Among renter households, 44% of the youngest households (under 25) are cost bur- dened and 62% of those 65+ are cost burdened. The middle age groups have lower propor- tions of cost-burdened households. EXECUTIVE SUMMARY MAXFIELD RESEARCH AND CONSULTING, LLC 5 • Based on Edina’s 2019 income distribution, 57% of all households and 60% of owner house- holds could afford to purchase an entry level home in Edina ($400,000). • Of Edina’s existing renters, 57% could afford to rent a market rate one-bedroom apartment in the City ($1,186 per month). The proportion of Edina’s existing renters able to afford a new market rate one-bedroom apartment ($1,745 per month) decreases to 43%. Housing Demand Analysis • Based on our calculations, demand exists in Edina for the following general occupancy prod- uct types between 2020 and 2040: o Market rate rental 2,577 units o Affordable rental 1,569 units (Shallow subsidy) o Subsidized rental 869 units (Deep subsidy) o For-sale single-family 201 units o For-sale multifamily 1,292 units • In addition, we find demand for multiple senior housing product types. By 2040, demand in Edina for senior housing is forecast for the following: o Active adult ownership 228 units o Active adult rental 320 units o Active adult affordable 518 units (Shallow subsidy) o Active adult subsidized 396 units (Deep subsidy) o Independent Living 483 units o Assisted Living 411 units o Memory care 272 units Demand for senior housing is cumulative. Therefore, any new senior housing properties devel- oped must be subtracted from the total demand. Recommendations and Conclusions • Based on the finding of our analysis and demand calculations, the following chart provides a summary of the recommended development concepts by product type for Edina over the short-term to 2040. Details are described in the Recommendations section of the report. EXECUTIVE SUMMARY MAXFIELD RESEARCH AND CONSULTING, LLC 6 Purchase Price/ Monthly Rent Range¹ Market Rate For-Sale Housing Move-Up Single-Family $650,000-$700,000 40 -50 Owned Multifamily (TwinHms/Villas)$525,000-$550,000 60 -80 60 -80 Affordable For-Sale Entry-level single-family $425,000-$450,000 50 -60 Owned Multifamily (THs/Rowhomes)$400,000 100 -120 100 -120 Market Rate Rental Housing Market Rate - Rental $1,450+/1BR, $2,200+/2BR 500 -600 Total 500 -600 Affordable Rental Housing Affordable Moderate Income3 220 -260 Subsidized 30% of Income4 160 -180 Total 160 -180 Total-General Occupancy 820 -980 Purchase Price/ Monthly Rent Range¹ Senior Coop./Ownership Active Adult $200,000+/1BR - $400,000+/2BR 200 -240 Active Adult Market Rate Rental5 $1,400+/1BR - $1,900+/2BR 200 -250 Active Adult Affordable Rental5 Moderate Income3 160 -180 Active Adult Subsidized Rental5 30% of Income4 150 -200 Independent Living/Congregate $2,800+/1BR - $4,500+/2BR 300 -350 Assisted Living $3,500+/EFF - $4,500+/1BR 180 -200 Memory Care $4,200+/EFF - $5,000+/1BR 120 -140 Total Senior Units 1,310 -1,560 Total - All Units 2,130 -2,540 2030-2040 recommended development should be revisited based on number of units developed from 2020-2030. 2030-2040 No. of Units 2030-2040 No. of Units 30 40 40 30 30 Units General Occupancy Housing No. of 120 2020-2025 10 20 No. of Units 2025-2030 10 20 180 10 10 30 490 300 120 50 250 Senior Housing (i.e. Age Restricted) 2020-2025 2025-2030 Units No. of No. of Units 2030-2040 1,030 960 540 2020-2025 2025-2030 510 80 100 100 60 80 150 60 80 60 30 TABLE CR-2 Source: Maxfield Research & Consulting, LLC RECOMMENDED HOUSING DEVELOPMENT CITY OF EDINA 2020 to 2040 ¹ Pricing in 2020 dollars. Pricing can be adjusted to account for inflation. 2 Replacement need, infill, and redevelopment. 3 Affordablity subject to income guidelines per Minnesota Housing Finance Agency (MHFA). See Table HA-1 for Hennepin County Income limits. 4 Subsized housing will require a high level of financial assistance 5 Alternative development concept is to combine active adult affordable and market rate active adult into mixed-income senior Note - Recommended development does not equal total demand. Edina may not be able to accommodate all recommended housing types based on land availability and development constraints. 40 30 80 100 180 150 50 200 450 DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 7 Introduction This section of the report examines factors related to the current and future demand for owned and rental housing units in Edina, Minnesota. It includes an analysis of population and house- hold growth trends and projections, age distribution, household income, net worth, household type, household tenure, diversity and mobility trends. A review of these characteristics pro- vides insight into the demand for various housing products in Edina. Definition of Primary Market Area The analysis focuses on housing needs for Edina. Demand however, for housing products in the City is also affected by its connections to adjacent communities and the Twin Cities Metro Area and households’ mobility in an area we have defined as the Primary Market Area (PMA) for housing for Edina. The PMA is an aggregation of census tracts that includes all of Edina and portions of Bloomington, Eden Prairie, Minneapolis and Minnetonka. DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 8 In defining the PMA, we considered factors such as commuting/travel patterns, employment and general household movement patterns over time in the Metro Area. Additional demand will also come from outside of the PMA as households in the Metro Area are highly mobile. Population and Household Growth Trends and Projections from 2000 to 2040 Table D-1 presents population and household growth trends and projections from 2000 to 2040. The 2000 to 2010 data is from the U.S. Census. Estimates and projections were calcu- lated by Maxfield Research and Consulting using information gathered from the Metropolitan Council and ESRI, Inc. (a national demographics service provider). The adjustments are in- tended to reflect growth that has been and will likely be realized after considering the impacts of the current housing market, employment and residential construction along with the poten- tial for increased density related to new housing development. Population • Between 2000 and 2010, Edina experienced a 1.1% increase in population and a -1.5% de- cline in households. • The estimated population growth in Edina between 2000 and 2019 is 5,699 people (12%). Population growth was stagnant between 2000 and 2010 but grew by 12% between 2010 and 2019. Redevelopment efforts combined with increased residential density has sup- ported population growth in the City since 2010. With the current rate of population growth, Edina is on target to reach or exceed the 2020 forecast published by the Metropoli- tan Council of 53,700 people. • The population growth rate of 12% between 2010 and 2019 is higher than that of the Re- mainder of the Primary Market Area (8.1%), Hennepin County (9.4%) and the seven county Twin Cities Metro (10.9%). 231 239.01 256.03 258.05 260.05 260.16 106 1098 261.01 262.05 235.01 239.02 256.05 259.03 260.06 260.18 120.01 1112 261.03 262.06 235.02 239.03 257.01 259.05 260.07 260.19 1065 1113 261.04 262.07 236 240.03 257.02 259.06 260.13 260.2 1091 262.01 262.08 237 240.04 258.02 259.07 260.15 262.02 238.01 240.05 258.03 238.02 240.06 Source: Maxfield Research and Consulting LLC Bloomington Eden Prairie Minneapolis Minnetonka Primary Market Area Definition Census Tracts within PMA Cities Edina DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 9 • Although population is forecast to increase from 2020 to 2030 in Edina and the PMA, the rate of growth is expected to slow, when compared to the growth rate from 2010 to 2020. Growth rates are projected at 7.8% for Edina, 6.6% for the Remainder of the PMA, 6.0% for Hennepin County and 9.5% for the Twin Cities Metro Area. • Between 2030 and 2040 population is expected to increase 2.9% in Edina, 6.2% in the Re- mainder of the PMA, 5.9% in Hennepin County, and 8.1% in the Twin Cities Metro Area. This is a slower rate of growth for all analyzed geographies than between 2010 and 2020 as well as for the projected growth rates between 2020 and 2030. DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 10 Estimate 2000 2010 2019 2020 2030 2040 No.Pct.No.Pct.No.Pct.No.Pct. Edina 47,425 47,941 53,124 53,700 57,900 59,600 516 1.1 5,759 12.0 4,200 7.8 1,700 2.9 Remainder of PMA 149,445 148,966 158,770 161,070 171,770 182,500 -479 -0.3 12,104 8.1 10,700 6.6 10,730 6.2 Hennepin County 1,116,200 1,152,425 1,249,774 1,260,590 1,336,480 1,414,960 36,225 3.2 108,165 9.4 75,890 6.0 78,480 5.9 7-County Metro Area 2,642,056 2,849,567 3,128,957 3,160,000 3,459,000 3,738,000 207,511 7.9 310,433 10.9 299,000 9.5 279,000 8.1 Edina 20,996 20,672 23,217 23,500 26,000 27,200 -324 -1.5 2,828 13.7 2,500 10.6 1,200 4.6 Remainder of PMA 62,678 64,278 68,300 70,200 78,500 85,800 1,600 2.6 5,922 9.2 8,300 11.8 7,300 9.3 Hennepin County 456,129 475,913 524,303 529,680 568,550 603,410 19,784 4.3 53,767 11.3 38,870 7.3 34,860 6.1 7-County Metro Area 1,021,454 1,117,749 1,249,375 1,264,000 1,402,000 1,537,000 96,295 9.4 146,251 13.1 138,000 10.9 135,000 9.6 Sources: U.S. Census Bureau; ESRI; Metropolitan Council; Maxfield Research & Consulting, LLC Change 2030 to 2040 POPULATION HOUSEHOLDS Note: Edina, Hennepin County and Metro Area totals sourced to Metropolitan Council (2020 to 2040). Twin Cities Metro includes the following counties: Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington TABLE D-1 POPULATION AND HOUSEHOLD GROWTH TRENDS AND PROJECTIONS EDINA MARKET AREA 2000 to 2040 ForecastU.S. Census 2000 to 2010 2010 to 2020 2020 to 2030 DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 11 Households • Household growth is typically a more accurate indicator of housing needs than population growth since, by definition, a household is an occupied dwelling unit. Additional demand however, can come from changing demographics of the population base, which results in shifts in demand for different housing products. • The number of households in Edina declined by -1.5% between 2000 and 2010. Between 2010 and 2020 however, an increase of 2,828 households or 13.7% is expected, primarily due to increases in housing supply and density. Strong housing demand post-Recession led to significant housing demand as Millennials and Gen Z moved more fully into the work- force. • In all geographies, household growth is expected to outpace population growth as the trend of smaller household sizes and higher rates of people living alone continues. Age Distribution Trends Age distribution affects demand for different types of housing since needs and desires change at different stages of the life cycle. Table D-2 shows the distribution of persons in nine age co- horts for Edina, the Remainder of the Primary Market Area, Hennepin County and the Metro -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2000-2010 2010-2020 2020-2030 2030-2040 DecadeHousehold Change by Decade Twin Cities Metro Hennepin Co Remainder Edina DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 12 Area in 2000 and 2010 with estimates for 2019 and projections for 2020, 2030 and 2040. The 2000 and 2010 age distributions are from the U.S. Census Bureau. Projections were made by Maxfield Research after considering data and forecasts from the Minnesota State Demographic Center, the Metropolitan Council and ESRI Inc., a national demographics forecasting company. The following are key points from the table. • Between 2000 and 2010, the population in age cohorts 35 to 44, 65 to 74 and 75 to 84 de- creased. All other age cohorts increased during this period. • Between 2010 and 2019, the population in Edina and the Remainder of the PMA is esti- mated to have decreased for those under age 18 and between age 35 and 54. The most sig- nificant population gains were for people ages 18 to 24 and 55 years and older. • All cohorts are expected to see increases in Edina between 2020 and 2030 with the popula- tion over age 65 forecast to increase 13% between 2020 and 2030. • The growth of population over 65 in Edina is similar to the overall trend in the greater Twin Cities Metro Area. This trend shows the population over 65 (largely Baby Boomers) is pro- jected to increase rapidly between 2020 and 2030. • From 2010 to 2020, all age cohorts 55 years or older are expected to grow, due primarily to the aging of the Baby Boom generation. As of 2019, Baby Boomers range in age from 55 to 73 years. • From 2020 to 2030, population cohorts in Edina are expected to remain stable or increase modestly, with the most growth expected to occur among people age 75 to 84. DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 13 Estimate 2000 2010 2019 2020 2030 2040 Age No.No.No.No.No.No.No.Pct.No.Pct.No.Pct. Edina Under 18 10,838 11,589 11,465 11,443 12,043 12,278 -146 -1.3 601 5.2 234 1.9 18 to 24 2,073 2,200 3,407 3,378 3,474 4,053 1,178 53.6 96 2.8 579 16.7 25 to 34 4,153 4,288 4,466 4,612 5,153 5,781 324 7.6 541 11.7 628 12.2 35 to 44 7,034 5,783 5,493 5,567 6,022 5,841 -216 -3.7 455 8.2 -181 -3.0 45 to 54 7,552 7,556 6,745 6,684 6,890 6,437 -872 -11.5 206 3.1 -453 -6.6 55 to 64 5,010 6,618 8,052 8,015 8,396 8,284 1,397 21.1 380 4.7 -111 -1.3 65 to 74 4,776 4,146 6,473 6,697 7,527 7,271 2,551 61.5 830 12.4 -256 -3.4 75 to 84 4,405 3,736 4,204 4,422 5,211 6,198 686 18.4 789 17.8 987 18.9 85 and over 1,584 2,025 2,819 2,881 3,185 3,457 856 42.3 303 10.5 272 8.6 Total 47,425 47,941 53,124 53,700 57,900 59,600 5,759 12.0 4,200 7.8 1,700 2.9 Remainder of PMA Under 18 34,620 32,189 31,808 32,053 33,891 35,174 -136 -0.4 1,838 5.7 1,283 3.8 18 to 24 9,548 9,575 11,211 11,283 12,272 13,136 1,708 17.8 989 8.8 865 7.0 25 to 34 21,461 20,184 19,071 19,449 21,259 23,029 -735 -3.6 1,810 9.3 1,770 8.3 35 to 44 26,394 18,983 19,922 20,270 21,998 24,422 1,287 6.8 1,728 8.5 2,424 11.0 45 to 54 25,266 24,687 20,963 20,923 21,359 22,131 -3,764 -15.2 437 2.1 772 3.6 55 to 64 14,764 21,794 24,346 24,173 25,136 25,125 2,379 10.9 964 4.0 -11 0.0 65 to 74 9,494 11,267 18,399 19,084 20,263 22,265 7,817 69.4 1,180 6.2 2,002 9.9 75 to 84 5,850 6,882 8,911 9,582 9,947 9,780 2,700 39.2 365 3.8 -167 -1.7 85 and over 2,048 3,405 4,140 4,254 5,543 7,438 849 24.9 1,289 30.3 1,895 34.2 Total 149,445 148,966 158,770 161,070 171,669 182,500 12,104 8.1 10,599 7.1 10,831 6.7 Hennepin County Under 18 267,502 261,345 265,874 266,648 286,007 287,237 5,303 2.0 19,359 7.3 1,230 0.4 18 to 24 108,767 113,551 122,340 123,068 132,312 138,666 9,517 8.4 9,243 7.5 6,355 4.8 25 to 34 183,860 187,523 188,874 190,093 207,154 247,618 2,570 1.4 17,061 9.0 40,464 19.5 35 to 44 191,872 154,304 168,188 169,978 177,752 185,360 15,674 10.2 7,773 4.6 7,608 4.3 45 to 54 156,068 171,130 154,523 154,420 152,359 152,816 -16,710 -9.8 -2,061 -1.3 457 0.3 55 to 64 85,773 133,758 161,447 160,314 165,724 165,550 26,556 19.9 5,409 3.4 -173 -0.1 65 to 74 59,737 66,516 109,439 113,290 125,629 135,836 46,774 70.3 12,339 10.9 10,207 8.1 75 to 84 44,942 42,476 51,856 55,174 60,142 60,843 12,698 29.9 4,967 9.0 702 1.2 85 and over 17,679 21,822 27,234 27,604 29,403 41,034 5,782 26.5 1,799 6.5 11,631 39.6 Total 1,116,200 1,152,425 1,249,774 1,260,590 1,336,480 1,414,960 108,165 9.7 75,890 6.6 78,480 5.9 Twin Cities Metro Under 18 697,534 700,960 711,690 720,480 792,111 856,002 19,520 2.8 71,631 9.9 63,891 8.1 18 to 24 244,226 263,462 282,077 284,400 304,392 325,206 20,938 7.9 19,992 7.0 20,814 6.8 25 to 34 411,155 420,311 453,505 455,040 487,719 512,106 34,729 8.3 32,679 7.2 24,387 5.0 35 to 44 469,324 391,324 421,217 423,440 473,883 515,844 32,116 8.2 50,443 11.9 41,961 8.9 45 to 54 363,592 440,753 399,081 398,160 421,998 452,298 -42,593 -9.7 23,838 6.0 30,300 7.2 55 to 64 200,980 326,007 410,622 404,480 432,375 452,298 78,473 24.1 27,895 6.9 19,923 4.6 65 to 74 130,615 163,425 270,337 281,240 328,605 362,586 117,815 72.1 47,365 16.8 33,981 10.3 75 to 84 90,292 97,442 122,636 132,720 152,196 179,424 35,278 36.2 19,476 14.7 27,228 17.9 85 and over 34,338 45,883 57,792 60,040 65,721 82,236 14,157 30.9 5,681 9.5 16,515 25.1 Total 2,642,056 2,849,567 3,128,957 3,160,000 3,459,000 3,738,000 310,433 11.7 299,000 10.5 279,000 8.8 Sources: U.S. Census Bureau; ESRI; Maxfield Research and Consulting LLC 2010-2020 2030-2040 Census Forecast 2020-2030 Change TABLE D-2 POPULATION AGE DISTRIBUTION EDINA MARKET AREA 2000 to 2040 DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 14 0% 5% 10% 15% 20% 25% 30% Under 18 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 to 74 75 to 84 85 and overPercent of Total PopulationEdina Age Distribution-% of Total 2000 2010 2020 2030 2040 DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 15 Median Household Incomes by Census Tract The map on the following page depicts median household incomes for Edina’s 14 census tracts. Geographic information System (GIS) data was provided by ESRI Inc., a national demographics and GIS service provider. Below are key points from the map. • Areas of Edina with high median incomes include most of the northeast portion of the city as well as the far southwestern portion of the city. • Areas with lower median incomes include the southeast portion of the city as well as small sections of northeast and northwest Edina. • None of the census tracts in Edina have a median income less than $50,000; median household incomes by census tract range from just over $57,000 to more than $200,000. 0% 5% 10% 15% 20% 25% 30% Under 18 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65+Percent of Total PopulationEdina Age Distribution-% of Total w/65+ 2000 2010 2020 2030 2040 DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 16 City of Edina 2019 Median Household Income by Census Tract DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 17 Household Income by Age of Householder Table D-3 shows the estimated distribution of household incomes in Edina in 2019 with a pro- jection for 2024. Table D-4 through D-6 show the same information for the Remainder of the Primary Market Area, Hennepin County and the Twin Cities Metro Area. The data is estimated by Maxfield Research based on income trends provided by ESRI, Inc. The data helps ascertain the demand for different housing products based on the size of the market at specific cost lev- els. The Department of Housing and Urban Development (HUD) defines housing as affordable if a household spends no more than 30% of its gross income for housing costs. For example, a household in Edina with the median annual income of $107,757 would be able to afford a monthly housing cost of about $2,694. Maxfield Research uses a figure of 25% to 30% for younger households and 40% or more for seniors, since seniors generally have lower living ex- penses and can often sell their homes and use the proceeds toward rent payments. Senior households that require support services will often spend higher proportions, up to as much as 90% of their income or may spend down assets to obtain housing and support services. A generally accepted standard for affordable owner-occupied housing is that a typical house- hold can afford to pay 3.0 to 3.5 times their annual income on a single-family home, given to- day’s relatively low mortgage interest rates. Thus, a $107,757 income would translate to an af- fordable single-family home price of $323,271 to $377,150. The higher end of this range as- sumes that the person has adequate funds for down payment and closing costs but does not include savings or equity in an existing home which may allow them to purchase a higher priced home. • Edina has an estimated median household income of $107,757 in 2019, which is expected to increase to $118,770 over the next five years (10.2%). • The 2019 median household income for Edina is higher than the Remainder of the PMA ($100,686), Hennepin County ($77,509) and the Twin Cities Metro ($79,195). • Between 2019 and 2024, Edina’s proportional increase in their median household income is expected to be lower (10.2%) compared to the other geographies (i.e. Remainder of the PMA (11.6%), Hennepin County (15.8%) and the Twin Cities Metro Area (13.9%). DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 18 DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 19 Non-Senior Households • In 2019, 1.9% of non-senior (under age 65) households in Edina had incomes under $15,000 (288 households). All these households would be eligible for deep-subsidy rental housing. Another 2.1% of Edina’s non-senior households had incomes between $15,000 and $25,000 (308 households). Many of these households would qualify for deep-subsidy housing, but a portion may be able to afford shallow-subsidy housing. The very tight rental housing mar- ket in many communities in the Twin Cities has resulted in rising rents. At an average monthly rent of $1,000 for a studio or one-bedroom unit at an older rental property, a household would need an income of at least $40,000 annually to afford this amount of rent per month. If housing costs absorb 30% of income, households with incomes of $15,000 to $25,000 could afford to pay $375 to $625 per month. There are a very limited number of rental properties in Edina that have rents even at the upper end of this range. • The proportion of residents eligible for deep subsidy rental housing in Edina is estimated to be lower than Hennepin County (6.7%), the Twin Cities Metro (5.7%) and the Remainder of the Primary Market Area (2.7%). • The proportion of total households earning between $15,000 and $25,000 ranged from 2.1% in the Edina to 5.1% in Hennepin County. DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 20 • In most geographic areas, household median incomes peak in the 45 to 54 age group, when householders are considered in their peak earning years. In 2019, the median household income in Edina was highest in the 45 to 54 age group at $188,095. By 2024, the median income for the 45 to 54 age group is projected to increase to $194,735 (3.5%). Total Under 25 25-34 35-44 45-54 55-64 65 -74 75+ Less than $15,000 862 16 38 33 61 143.38 146 425 $15,000 to $24,999 1,156 24 51 44 58 135.21 228 616 $25,000 to $34,999 1,022 33 101 78 75 125.23 211 398 $35,000 to $49,999 1,777 63 186 152 152 201.46 333 690 $50,000 to $74,999 2,419 66 272 201 201 360.27 466 853 $75,000 to $99,999 2,271 57 300 322 165 351.19 555 520 $100,000 to $149,999 3,241 34 348 382 610 745.95 644 476 $150,000 to $199,999 5,370 8 260 884 1,580 1,638.90 664 335 $200,000+5,381 19 260 884 1,580 1,638.90 664 335 Total 23,500 320 1,818 2,980 4,482 5,340 3,912 4,647 Median Income $107,757 $57,087 $94,903 $156,494 $188,095 $152,701 $93,113 $52,561 Less than $15,000 823 16 34 36 51 98 141 448 $15,000 to $24,999 1,146 20 46 39 48 108 224 661 $25,000 to $34,999 1,093 28 101 74 63 104 234 489 $35,000 to $49,999 1,911 62 200 146 129 162 365 848 $50,000 to $74,999 2,824 71 305 229 185 328 589 1,117 $75,000 to $99,999 2,645 67 347 339 162 334 664 731 $100,000 to $149,999 4,146 46 478 441 645 812 918 805 $150,000 to $199,999 3,347 11 402 708 533 665 634 394 $200,000+6,814 19 408 1,116 1,730 1,932 1,016 594 Total 24,750 340 2,320 3,128 3,546 4,544 4,785 6,086 Median Income $118,770 $62,963 $109,596 $164,133 $194,735 $170,878 $106,699 $60,979 Less than $15,000 -39 -1 -4 3 -9 -46 -5 23 $15,000 to $24,999 -10 -4 -5 -6 -10 -27 -4 45 $25,000 to $34,999 71 -4 0 -4 -12 -21 23 90 $35,000 to $49,999 135 -1 14 -5 -23 -40 32 158 $50,000 to $74,999 405 5 32 28 -16 -32 124 264 $75,000 to $99,999 373 10 46 17 -3 -17 109 211 $100,000 to $149,999 906 12 130 59 35 66 274 329 $150,000 to $199,999 -2,024 2 142 -176 -1,047 -974 -31 59 $200,000+1,433 -0 147 232 150 293 352 259 Total 1,250 20 502 148 -936 -797 873 1,439 Median Income $11,013 $5,876 $14,693 $7,639 $6,640 $18,177 $13,586 $8,418 Note: Some columns may not add to totals due to rounding. Sources: ESRI; Maxfield Research and Consulting LLC Change 2020 - 2025 TABLE D-3 HOUSEHOLD INCOME BY AGE OF HOUSEHOLDER CITY OF EDINA (Number of Households) 2020 2025 2020 to 2025 Age of Householder DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 21 • The 45 to 54 age cohort had the highest median incomes in the Remainder of the PMA ($135,324), Hennepin County ($106,264) and the Twin Cities Metro ($104,392). • In 2024, the median household income is projected to remain highest for those ages 45 to 54 in all geographies. Within the 45 to 54 age group, Edina is expected to have the lowest rate of household income increase (3.5%) compared to the other geographies (i.e. the Re- mainder of the PMA (12.5%), Hennepin County (12.1%) and the Twin Cities Metro (10.7%). • The median estimated home value in Edina as of 2019 is $465,000. The income required to afford a home at this price would range from about $132,857 to $155,000 based on a stand- ard of 3.0 to 3.5 times the median income (and assuming these households do not have a high level of debt). Using the data compiled for income by age of householder, an esti- mated 63.5% of non-senior households in the City of have incomes of $132,857 or more as of 2019. Senior Households • Typically, younger seniors have higher incomes because they are still working, are married couples with two incomes or have higher social security benefits. The 2019 median in- comes for Edina households age 65 to 74 and 75+ are $93,113 and $52,561, respectively. • Compared to Edina, senior incomes for 65 to 74-year-olds are lower in the Remainder of the Primary Market Area ($87,384), Hennepin County ($69,438) and the Twin Cities Metro ($68,721). For the 75+ cohort, median incomes were $40,783 in the Twin Cities Metro, $52,630 in the Remainder of the PMA and $52,561 in Edina. • Senior households ages 75+ have lower incomes compared to senior households ages 65 to 74. In Edina, 3.7% of households ages 65 to 74 had incomes below $15,000, compared to 9.1% of households age 75 and over. Many of these low-income 75+ households rely solely on social security benefits. • Generally, senior households with incomes greater than $35,000 can afford market rate senior housing. Using an income allocation of 40% for adult/no services housing, translates to a monthly rent of $1,166. As of 2019, 80% (6,456) of senior households in Edina have in- comes of $35,000 or more. • The current generation of seniors has been frugal, accumulated wealth and many had de- fined pension plans. With changes to retirement structures, future senior generations may not have as much wealth or incomes to dedicate toward service-based housing, especially if they choose to rent most or all their lives. DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 22 Total Under 25 25-34 35-44 45-54 55-64 65-74 75+ Less than $15,000 2,247 163 349 211 214 365 359 586 $15,000 to $24,999 2,432 104 301 221 196 390 501 718 $25,000 to $34,999 3,083 225 570 295 267 397 454 876 $35,000 to $49,999 5,423 282 991 638 539 646 803 1,524 $50,000 to $74,999 10,156 431 1,569 1,268 1,175 1,734 1,958 2,022 $75,000 to $99,999 8,517 218 1,359 1,453 1,077 1,813 2,044 553 $100,000 to $149,999 12,965 230 1,837 2,334 2,750 2,938 1,942 935 $150,000 to $199,999 11,731 65 933 2,201 3,202 3,241 1,536 553 $200,000+11,745 79 933 2,201 3,202 3,241 1,536 553 Total 68,300 1,796 8,842 10,821 12,623 14,765 11,133 8,321 Median Income $100,686 $55,020 $84,534 $119,257 $135,324 $117,737 $87,384 $52,630 Less than $15,000 1,815 150 258 161 155 214 304 575 $15,000 to $24,999 2,116 92 237 171 147 285 453 732 $25,000 to $34,999 2,864 207 482 238 174 289 439 1,036 $35,000 to $49,999 5,131 280 914 548 394 467 738 1,791 $50,000 to $74,999 10,604 485 1,606 1,242 990 1,477 2,116 2,688 $75,000 to $99,999 8,969 260 1,478 1,435 1,005 1,629 2,345 818 $100,000 to $149,999 15,590 317 2,387 2,713 2,877 3,032 2,623 1,640 $150,000 to $199,999 11,233 109 1,448 2,644 2,398 2,404 1,578 652 $200,000+15,199 115 1,377 2,812 3,646 3,755 2,438 1,056 Total 73,520 2,014 10,185 11,963 11,785 13,550 13,033 10,989 Median Income $112,411 $61,632 $101,538 $136,766 $152,187 $136,181 $101,513 $59,870 Less than $15,000 -432 -14 -92 -49 -60 -152 -55 -11 $15,000 to $24,999 -317 -12 -64 -50 -50 -105 -48 13 $25,000 to $34,999 -219 -18 -89 -58 -93 -108 -15 160 $35,000 to $49,999 -292 -2 -77 -90 -145 -179 -65 267 $50,000 to $74,999 447 54 37 -26 -185 -257 158 666 $75,000 to $99,999 452 41 119 -18 -72 -184 301 264 $100,000 to $149,999 2,624 88 550 380 127 94 682 706 $150,000 to $199,999 -498 44 515 444 -804 -837 41 99 $200,000+3,454 36 444 611 444 514 902 503 Total 5,220 218 1,343 1,143 -837 -1,214 1,900 2,668 Median Income $11,725 $6,612 $17,004 $17,509 $16,863 $18,444 $14,129 $7,240 Sources: ESRI; Maxfield Research and Consulting LLC Change - 2019 to 2024 TABLE D-4 HOUSEHOLD INCOME BY AGE OF HOUSEHOLDER REMAINDER OF PRIMARY MARKET AREA (Number of Households) 2019 2024 2019 and 2024 Age of Householder DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 23 Total Under 25 25-34 35-44 45-54 55-64 65-74 75+ Less than $15,000 38,205 4,917 6,684 4,623 4,308 6,274 4,978 6,421 $15,000 to $24,999 33,598 3,541 5,628 3,515 2,918 4,904 5,160 7,932 $25,000 to $34,999 35,073 3,365 7,916 4,682 3,747 4,194 4,578 6,593 $35,000 to $49,999 56,176 4,073 11,811 8,429 6,785 7,237 8,354 9,487 $50,000 to $74,999 83,550 3,827 16,251 12,999 12,510 15,725 12,583 9,655 $75,000 to $99,999 64,481 2,168 12,907 12,389 10,244 12,765 10,209 3,800 $100,000 to $149,999 87,595 1,760 16,463 20,155 17,771 17,336 9,611 4,499 $150,000 to $199,999 62,825 627 6,226 13,117 17,336 16,238 7,029 2,252 $200,000+62,800 602 6,226 13,117 17,336 16,238 7,029 2,252 Total 524,303 24,880 90,114 93,025 92,955 100,911 69,530 52,889 Median Income $77,509 $36,653 $69,443 $98,141 $106,264 $91,428 $69,438 $41,966 Less than $15,000 30,831 4,474 4,807 3,462 3,143 4,303 4,366 6,276 $15,000 to $24,999 29,178 3,436 4,424 2,689 2,238 3,664 4,800 7,927 $25,000 to $34,999 32,411 3,360 6,707 3,956 2,943 3,361 4,599 7,485 $35,000 to $49,999 52,496 4,269 10,415 7,378 5,640 5,756 8,276 10,762 $50,000 to $74,999 84,633 4,411 15,897 12,516 11,304 14,000 14,167 12,338 $75,000 to $99,999 66,119 2,597 13,264 12,063 9,751 11,565 11,699 5,180 $100,000 to $149,999 103,116 2,432 20,397 22,723 18,928 18,200 12,955 7,481 $150,000 to $199,999 68,430 1,017 10,993 16,572 15,279 13,247 7,747 3,575 $200,000+78,015 824 8,483 16,316 19,204 18,425 10,704 4,060 Total 545,228 26,819 95,386 97,675 88,429 92,522 79,314 65,083 Median Income $89,749 $41,260 $83,576 $110,545 $119,136 $106,943 $80,901 $50,121 Less than $15,000 -7,374 -443 -1,877 -1,161 -1,166 -1,971 -612 -145 $15,000 to $24,999 -4,420 -106 -1,205 -826 -680 -1,240 -359 -5 $25,000 to $34,999 -2,662 -5 -1,209 -726 -804 -833 21 892 $35,000 to $49,999 -3,680 195 -1,397 -1,051 -1,145 -1,481 -78 1,275 $50,000 to $74,999 1,083 584 -354 -483 -1,206 -1,725 1,584 2,683 $75,000 to $99,999 1,638 429 357 -325 -493 -1,200 1,490 1,380 $100,000 to $149,999 15,521 672 3,934 2,568 1,157 864 3,344 2,982 $150,000 to $199,999 5,605 391 4,766 3,455 -2,057 -2,991 719 1,323 $200,000+15,215 222 2,256 3,199 1,867 2,187 3,675 1,808 Total 20,925 1,939 5,272 4,650 -4,525 -8,389 9,784 12,194 Median Income $12,240 $4,607 $14,133 $12,404 $12,872 $15,515 $11,463 $8,155 Sources: ESRI; Maxfield Research and Consulting LLC Change - 2019 to 2024 TABLE D-5 HOUSEHOLD INCOME BY AGE OF HOUSEHOLDER HENNEPIN COUNTY (Number of Households) 2019 2024 2019 and 2024 Age of Householder DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 24 Total Under 25 25-34 35-44 45-54 55-64 65-74 75+ Less than $15,000 79,744 8,096 13,151 9,673 9,301 13,978 10,933 14,612 $15,000 to $24,999 74,020 6,085 11,372 7,681 6,796 11,450 12,375 18,262 $25,000 to $34,999 83,153 6,553 17,192 10,988 9,356 10,853 11,595 16,617 $35,000 to $49,999 133,426 8,243 26,863 19,829 16,904 18,587 20,598 22,402 $50,000 to $74,999 212,352 8,686 40,077 31,973 32,647 41,704 34,136 23,128 $75,000 to $99,999 172,968 4,623 31,927 32,548 30,912 37,408 27,495 8,056 $100,000 to $149,999 232,011 3,739 40,081 57,057 50,114 47,287 24,307 9,425 $150,000 to $199,999 130,892 1,262 13,405 27,910 36,589 32,957 14,595 4,174 $200,000+130,809 1,180 13,405 27,910 36,589 32,957 14,595 4,174 Total 1,249,375 48,467 207,472 225,569 229,207 247,183 170,629 120,848 Median Income $79,195 $40,116 $72,107 $100,556 $104,392 $89,037 $68,721 $40,783 Less than $15,000 64,123 7,314 9,469 7,429 6,686 9,495 9,460 14,271 $15,000 to $24,999 63,919 5,694 8,943 5,958 5,089 8,469 11,407 18,359 $25,000 to $34,999 76,388 6,301 14,424 9,337 7,130 8,587 11,588 19,020 $35,000 to $49,999 123,858 8,372 23,546 17,463 13,572 14,653 20,406 25,846 $50,000 to $74,999 213,528 9,737 38,623 30,738 28,602 37,009 38,442 30,377 $75,000 to $99,999 175,916 5,405 32,356 32,240 28,434 34,194 32,092 11,193 $100,000 to $149,999 270,885 5,029 48,746 65,972 51,880 50,027 33,402 15,829 $150,000 to $199,999 169,393 2,058 24,737 42,575 40,857 34,014 17,773 7,379 $200,000+161,190 1,557 17,850 35,027 39,890 37,268 22,128 7,469 Total 1,319,200 51,467 218,694 246,740 222,141 233,716 196,699 149,742 Median Income $90,172 $45,557 $84,302 $110,512 $115,597 $102,892 $79,226 $47,962 Less than $15,000 -15,621 -783 -3,682 -2,244 -2,614 -4,483 -1,473 -341 $15,000 to $24,999 -10,101 -390 -2,428 -1,723 -1,708 -2,981 -968 97 $25,000 to $34,999 -6,765 -252 -2,768 -1,652 -2,225 -2,266 -6 2,403 $35,000 to $49,999 -9,568 129 -3,317 -2,366 -3,332 -3,934 -191 3,444 $50,000 to $74,999 1,176 1,052 -1,454 -1,235 -4,045 -4,695 4,306 7,249 $75,000 to $99,999 2,947 782 430 -307 -2,478 -3,214 4,597 3,137 $100,000 to $149,999 38,874 1,289 8,665 8,916 1,766 2,740 9,094 6,404 $150,000 to $199,999 38,501 796 11,332 14,665 4,269 1,056 3,178 3,205 $200,000+30,381 377 4,445 7,117 3,302 4,310 7,533 3,295 Total 69,825 3,000 11,223 21,170 -7,066 -13,466 26,070 28,895 Median Income $10,977 $5,441 $12,195 $9,956 $11,205 $13,855 $10,505 $7,179 Sources: ESRI; Maxfield Research and Consulting LLC Change - 2019 to 2024 TABLE D-6 HOUSEHOLD INCOME BY AGE OF HOUSEHOLDER TWIN CITIES METRO (Number of Households) 2019 2024 2019 and 2024 Age of Householder DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 25 Net Worth Table D-7 shows the estimated household net worth in Edina in 2019, along with the Remainder of the Market Area, Hennepin County and the Twin Cities Metro. Simply stated, net worth is the difference between assets and liabilities, or the total value of assets after the debt is sub- tracted. The data was compiled and estimated by ESRI based on the Survey of Consumer Fi- nances and Federal Reserve Board data. According to data released by the National Association of Realtors, the average American homeowner has a net worth about 31 to 46 times greater than that of a renter and that in 2016, the average American homeowner net worth was estimated at 44 times greater than that of a renter. The Federal Reserve survey is conducted every three years and this research was based on the 2016 Federal Reserve survey that showed the median net worth of a homeowner was $231,400, whereas the median net worth of a renter was $5,200. • Edina households had an average net worth of $2,412,517 in 2019 and a median net worth of $687,366. Median net worth is generally a more accurate depiction of wealth than the average figure. A few households with very large net worth can significantly skew the aver- age. • Similar to household income, net worth increases as households age and decreases after they pass their peak earning years and move into retirement. Median and average net worth usually peak in the 65 to 74 age cohort. The median net worth in Edina for the age 65 to 74 cohort is estimated at $861,272 as of 2019. Average and median net worth how- ever, are highest for the 55 to 64 age cohort at $4,014,474 and $1,000,001, respectively. Additionally, despite net worth tending to decrease after retirement, senior households of- ten continue to have relatively high net worth due to their savings, investments, and other retirement funds. • Edina reported the highest average net worth ($2,412,517) and highest median net worth ($687,366). The Twin Cities Metro had the lowest average net worth ($1,076,191) while Hennepin County had the lowest median net worth ($168,046). DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 26 Tenure by Household Income Table D-8 shows household tenure by income for Edina, the Remainder of the PMA, Hennepin County and the Twin Cities Metro in 2019. Data is an estimate from the American Community Survey (2018) and adjusted for the most recent household 2019 household estimates This infor- mation is important to assess the propensity for households to own or rent their housing based on income. As stated earlier, the Department of Housing and Urban Development determines affordable housing as not exceeding 30% of the household’s income. The higher the income, Average Median Average Median Average Median Average Median Edina $2,412,517 $687,366 $43,269 $13,647 $172,338 $52,375 $912,575 $324,719 Remainder of PMA $1,789,116 $418,483 $39,074 $12,722 $143,320 $46,234 $775,400 $185,484 Hennepin County $1,119,049 $168,046 $27,757 $10,324 $110,010 $25,020 $505,912 $109,461 Twin Cities Metro $1,076,191 $198,484 $33,913 $11,136 $124,797 $41,882 $517,054 $139,122 Average Median Average Median Average Median Average Median Edina $2,703,448 $1,000,001 $4,014,474 $1,000,001 $2,809,423 $861,272 $2,318,768 $709,024 Remainder of PMA $1,926,515 $557,544 $2,990,145 $1,000,001 $2,507,263 $849,822 $2,167,855 $753,023 Hennepin County $1,301,419 $259,944 $1,301,419 $507,918 $1,772,087 $463,069 $1,556,652 $426,831 Twin Cities Metro $1,241,095 $285,221 $1,935,063 $499,916 $1,643,227 $463,350 $1,408,972 $389,113 Sources: ESRI; Maxfield Research and Consulting, LLC TABLE D-7 ESTIMATED NET WORTH BY AGE OF HOUSEHOLDER EDINA MARKET AREA 2019 Age of Householder Total 15-24 25-34 35-44 45-54 55-64 65-74 75+ $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 15-24 25-34 35-44 45-54 55-64 65-74 75+Median Net WorthMedian Net Worth by Age, Edina Market Area, 2019 Edina Remainder of PMA Hennepin County Twin Cities Metro DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 27 the lower percentage a household typically allocates to housing. Many lower income house- holds, as well as many young and senior households spend more than 30% of their income, while middle-aged households in their prime earning years typically allocate 20% to 25% of their income. • As income increases, so does the rate of homeownership. This can be seen in Edina, where the homeownership rate is less than 60% for households with incomes less than $50,000 and increases to 90.9% of households with incomes of $150,000 or greater. • A portion of renter households that are referred to as lifestyle renters, those who are finan- cially able to own but choose to rent, typically have household incomes of $50,000 or more and account for an estimated 56% of Edina’s renters in 2019. The proportion of lifestyle renters is slightly higher in the Remainder of the PMA (57%), but Edina’s proportion of life- style renters is higher than Hennepin County (41.9%) and the Twin Cities Metro (40.7%) • Households with incomes below $15,000 are typically a market for deep-subsidy rental housing (an estimated 9.2% of Edina’s renter households as of 2019). The proportion of renters eligible for deep subsidies in the Remainder of the Market Area (8.6%) is similar to Edina. DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 28 Owner-Renter-Owner-Renter-Owner-Renter-Owner-Renter- Income Occupied Pct.Occupied Pct.Occupied Pct.Occupied Pct.Occupied Pct.Occupied Pct.Occupied Pct.Occupied Pct. Less than $15,000 807 57.3%601 42.7%1,221 42.2%1,670 57.8%11,477 24.0%36,410 76.0%26,895 28.0%69,080 72.0% $15,000 to $24,999 894 52.6%805 47.4%1,602 43.7%2,061 56.3%14,407 35.6%26,108 64.4%35,428 39.3%54,819 60.7% $25,000 to $34,999 715 58.1%516 41.9%2,184 56.9%1,653 43.1%17,149 43.1%22,678 56.9%44,461 47.7%48,720 52.3% $35,000 to $49,999 1,238 56.7%946 43.3%3,352 53.4%2,925 46.6%29,786 49.7%30,113 50.3%77,342 55.3%62,481 44.7% $50,000 to $74,999 1,886 62.0%1,156 38.0%6,538 60.0%4,367 40.0%51,767 59.5%35,275 40.5%142,025 65.8%73,944 34.2% $75,000 to $99,999 1,561 67.2%761 32.8%6,294 72.2%2,428 27.8%46,949 70.3%19,816 29.7%130,947 76.3%40,624 23.7% $100,000 to $149,999 2,569 71.9%1,002 28.1%10,664 79.8%2,692 20.2%70,867 80.3%17,421 19.7%195,000 86.1%31,602 13.9% $150,000+7,313 90.9%730 9.1%16,940 91%1,709 9.2%84,843 90.2%9,237 9.8%201,137 93.1%14,871 6.9% Total 16,983 72.3%6,517 27.7%48,795 71.4%19,505 28.6%327,245 62.4%197,058 37.6%853,235 68.3%396,141 31.7% Median Household Income Sources: U.S. Census Bureau - American Community Survey; Maxfield Research and Consulting LLC $129,679 $59,886 $114,820 $63,150 TABLE D-8 TENURE BY HOUSEHOLD INCOME EDINA MARKET AREA 2019 CITY OF EDINA REMAINDER OF PMA HENNEPIN COUNTY TWIN CITIES METRO $99,376 $42,878 $96,345 $43,346 DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 29 Tenure by Age of Householder Table D-9 shows the number of owner and renter households in Edina by age group in 2010 and 2019. This data is useful in determining demand for certain types of housing since housing preferences change throughout an individual’s life cycle. The following are key findings from Table D-9. • In 2010, 74.8% of all households in Edina owned their housing. By 2019, that percentage declined to 72.3%. A similar pattern was observed in the Remainder of the PMA, Hennepin County and the Twin Cities Metro, which experienced a decline in homeownership rates between 2.3% and 1.7%. • As households progress through their life cycle, housing needs change. The proportion of renter households decreases as households’ age out of their young-adult years. By the time households reach their senior years however, rental housing often becomes a more viable option than homeownership, reducing the responsibility of maintenance and a fi- nancial commitment. • The proportion of homeowners increases as households age, through the 45 to 54 age co- hort in Edina. In this age cohort, homeowner households reached the highest proportion of 83% before declining to 57.9% among households 85 and older. In every age cohort, the proportion of renter households increased between 2010 and 2019. 0% 20% 40% 60% 80% 100% 120% 15-24 25-34 35-44 45-54 55-64 65-74 75-84 85+Proportion of RentersAge Cohort Proportion of Renters by Age of Householder, 2019 Edina Remainder of PMA Hennepin County TC Metro DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 30 Age No.Pct.No.Pct.No.Pct.No.Pct.No.Pct.No.Pct.No.Pct.No.Pct. 15-24 Own 53 18.5 8 3.7 233 12.1 236 13.4 2,790 10.9 1,695 7.7 7,947 16.0 5,621 12.7 Rent 234 81.5 198 96.3 1,689 87.9 1,527 86.6 22,734 89.1 20,198 92.3 41,789 84.0 38,672 87.3 Total 287 100.0 206 100.0 1,922 100.0 1,763 100.0 25,524 100.0 21,893 100.0 49,736 100.0 44,293 100.0 25-34 Own 796 39.3 984 38.4 4,574 44.6 4,608 42.1 39,850 42.3 40,251 38.1 102,236 50.6 104,300 46.3 Rent 1,227 60.7 1,577 61.6 5,672 55.4 6,343 57.9 54,312 57.7 65,483 61.9 99,716 49.4 121,182 53.7 Total 2,023 100.0 2,561 100.0 10,246 100.0 10,951 100.0 94,162 100.0 105,734 100.0 201,952 100.0 225,482 100.0 35-44 Own 2,349 76.3 2,684 71.3 7,684 72.2 7,766 67.5 57,684 66.6 58,062 62.3 154,678 72.3 153,466 67.9 Rent 729 23.7 1,082 28.7 2,956 27.8 3,744 32.5 28,946 33.4 35,102 37.7 59,303 27.7 72,530 32.1 Total 3,078 100.0 3,766 100.0 10,640 100.0 11,510 100.0 86,630 100.0 93,164 100.0 213,981 100.0 225,997 100.0 45-54 Own 3,620 84.1 3,883 83.0 12,001 83.6 10,218 78.8 75,651 75.4 72,020 73.3 202,404 79.8 197,477 78.1 Rent 684 15.9 793 17.0 2,359 16.4 2,753 21.2 24,688 24.6 26,203 26.7 51,379 20.2 55,342 21.9 Total 4,304 100.0 4,676 100.0 14,360 100.0 12,971 100.0 100,339 100.0 98,224 100.0 253,783 100.0 252,819 100.0 55-64 Own 3,416 85.3 3,498 82.4 11,467 87.2 11,902 85.3 65,466 79.5 74,650 76.6 162,595 82.6 193,838 80.3 Rent 591 14.7 749 17.6 1,678 12.8 2,054 14.7 16,891 20.5 22,820 23.4 34,355 17.4 47,660 19.7 Total 4,007 100.0 4,247 100.0 13,145 100.0 13,956 100.0 82,357 100.0 97,470 100.0 196,950 100.0 241,498 100.0 65-74 Own 2,212 82.5 2,988 81.9 6,285 89.3 8,297 88.7 34,028 80.0 47,860 79.7 85,347 82.6 120,656 82.2 Rent 470 17.5 659 18.1 751 10.7 1,056 11.3 8,502 20.0 12,184 20.3 17,998 17.4 26,098 17.8 Total 2,682 100.0 3,648 100.0 7,036 100.0 9,353 100.0 42,530 100.0 60,044 100.0 103,345 100.0 146,753 100.0 75-84 Own 2,052 77.2 1,931 72.7 3,877 83.7 4,229 84.8 21,975 75.6 23,073 75.1 50,083 75.6 57,192 76.5 Rent 605 22.8 724 27.3 756 16.3 760 15.2 7,108 24.4 7,638 24.9 16,185 24.4 17,553 23.5 Total 2,657 100.0 2,655 100.0 4,633 100.0 4,990 100.0 29,083 100.0 30,711 100.0 66,268 100.0 74,745 100.0 85+Own 957 58.6 1,008 57.9 1,306 56.9 1,538 54.8 8,677 56.8 9,634 56.5 17,185 54.2 20,685 54.7 Rent 677 41.4 734 42.1 990 43.1 1,268 45.2 6,611 43.2 7,430 43.5 14,549 45.8 17,104 45.3 Total 1,634 100.0 1,742 100.0 2,296 100.0 2,807 100.0 15,288 100.0 17,064 100.0 31,734 100.0 37,788 100.0 TOTAL Own 15,455 74.8 16,983 72.3 47,427 73.8 48,795 71.4 306,121 64.3 327,245 62.4 782,475 70.0 853,234 68.3 Rent 5,217 25.2 6,517 27.7 16,851 26.2 19,505 28.6 169,792 35.7 197,058 37.6 335,274 30.0 396,141 31.7 Total 20,672 100.0 23,500 100.0 64,278 100.0 68,300 100.0 475,913 100.0 524,303 100.0 1,117,749 100.0 1,249,375 100.0 TABLE D-9 TENURE BY AGE OF HOUSEHOLDER EDINA MARKET AREA 2010 and 2019 201920102019 CITY OF EDINA 2010 TWIN CITIES METRO Sources: U.S. Census Bureau; Maxfield Research and Consulting LLC REMAINDER OF PRIMARY MARKET AREA 20192010 HENNEPIN COUNTY 2010 2019 DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 31 Household Type Table D-10 shows a breakdown of the type of households in Edina in 2010 and 2019. The data is useful in assessing housing demand since the household composition often dictates the type of housing needed and preferred. • In 2010, the largest household type in Edina was Living Alone, which represented 33.1% of households. As of 2019, households living alone remains the largest household type in the City, although the proportion of households decreased modestly over the period. • Among all geographies, the greatest change in household type occurred in the “Roommate” category in Edina, where this segment increased by 33.0%, followed by Married Couples with Children, where this segment increased by 21%. This is atypical of other communities in the Metro where living alone and Married Couples without Children have had greater in- creases. • Edina had a higher proportion of Married with Child Households, 25.8%, compared to the Remainder of the PMA, Hennepin County and the Twin Cities Metro, which ranged between 18.8% and 21.5% in 2019. • At the same time, Edina reported the lowest proportion of Other (8.8%, single parents with children) and Roommates households (5.2%, unmarried couples without children and re- lated or unrelated individuals living together), compared to the Remainder of PMA, Henne- pin County, and the Twin Cities Metro. DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 32 Households 2010 2019 2010 2019 2010 2019 2010 2019 2010 2019 2010 2019 Edina 20,672 23,217 4,955 5,993 6,153 6,659 1,810 2,043 6,851 7,321 903 1,201 Remainder of PMA 64,278 68,300 13,269 13,646 19,983 21,721 6,851 7,445 19,453 20,378 4,722 5,111 Hennepin County 475,913 524,303 89,084 98,586 116,099 132,837 67,702 69,247 155,807 173,477 47,221 50,156 Twin Cities Metro 1,117,749 1,249,375 244,687 268,319 298,723 347,846 164,086 175,075 319,030 360,786 91,223 97,351 Percent Edina 100.0 100.0 24.0 25.8 29.8 28.7 8.8 8.8 33.1 31.5 4.4 5.2 Remainder of PMA 100.0 100.0 20.6 20.0 31.1 31.8 10.7 10.9 30.3 29.8 7.3 7.5 Hennepin County 100.0 100.0 18.7 18.8 24.4 25.3 14.2 13.2 32.7 33.1 9.9 9.6 Twin Cities Metro 100.0 100.0 21.9 21.5 26.7 27.8 14.7 14.0 28.5 28.9 8.2 7.8 No.Pct.No.Pct.No.Pct.No.Pct.No.Pct.No.Pct. Edina 2,545 12.3%1,038 21.0%506 8.2%233 12.9%470 6.9%298 33.0% Remainder of PMA 4,022 6.3%377 2.8%1,738 8.7%594 8.7%925 4.8%389 8.2% Hennepin County 48,390 10.2%9,502 10.7%16,738 14.4%1,545 2.3%17,670 11.3%2,935 6.2% Twin Cities Metro 131,626 11.8%23,632 9.7%49,123 16.4%10,989 6.7%41,756 13.1%6,128 6.7% * Predominantly single-parents with children ** Includes unmarried couples without children and unrelated people living together Sources: U. S. Census; ESRI, Inc.; Maxfield Research and Consulting, LLC Change 2010-2019 Total HH's Married w/ Child Married w/o Child Other *Living Alone Roommates ** TABLE D-10 HOUSEHOLD TYPE EDINA MARKET AREA 2010 & 2019 Family Households Non-Family Households DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 33 • Although Edina showed an increase in all household types between 2010 and 2019, the pro- portion of Married without Children Households and Living Alone Households declined, due primarily to larger increases among Married Couples with Children and Roommates. In- creases in households with fewer people, on average, in each household will impact the type of housing in demand in Edina. Smaller household sizes may favor maintenance-free housing options located near amenity-rich areas as opposed to large single-family homes. Tenure by Household Size Table D-11 shows the distribution of households by size and tenure in Edina, the Remainder of the PMA, Hennepin County and the Twin Cities Metro in 2010 and 2019. • Household size for renters is usually smaller than for owners. This trend is because the typi- cal market segments for rental housing are younger households which are less likely to be married and have children and older adults who elect to downsize or “right size” from their single-family homes. In 2019, an estimated 47% of the renter-occupied units in Edina were single-person households, compared to only 26% of owner households. Data from the American Community Survey adjusted to current household estimates reveals that 9.7% of Edina owner households reside alone in single-family detached homes. Most of these people are likely over age 65. DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 34 Size Number Pct.Number Pct.Number Pct.Number Pct. 1PP Household 4,161 26.9%2,690 51.6%4,281 25.5%3,040 47.2% 2PP Household 5,510 35.7%1,410 27.0%5,984 35.7%1,831 28.4% 3PP Household 2,052 13.3%593 11.4%2,222 13.2%892 13.8% 4PP Household 2,355 15.2%328 6.3%2,826 16.8%542 8.4% 5PP Household 1,076 7.0%125 2.4%1,206 7.2%127 2.0% 6PP Household 234 1.5%42 0.8%219 1.3%8 0.1% 7PP+ Household 67 0.4%29 0.6%41 0.2%0 0.0% Total 15,455 100.0%5,217 100.0%16,778 100.0%6,439 100.0% Size Number Pct.Number Pct.Number Pct.Number Pct. 1PP Household 11,709 24.7%7,744 46.0%12,088 24.8%8,290 42.5% 2PP Household 18,783 39.6%5,023 29.8%19,463 39.9%6,421 32.9% 3PP Household 7,200 15.2%2,038 12.1%7,504 15.4%2,253 11.5% 4PP Household 6,632 14.0%1,236 7.3%6,808 14.0%1,571 8.1% 5PP Household 2,251 4.7%437 2.6%1,917 3.9%591 3.0% 6PP Household 599 1.3%232 1.4%765 1.6%254 1.3% 7PP+ Household 253 0.5%141 0.8%251 0.5%124 0.6% Total 47,427 100.0%16,851 100.0%48,795 100.0%19,505 100.0% Size Number Pct.Number Pct.Number Pct.Number Pct. 1PP Household 77,198 25.2%78,609 46.3%82,997 25.4%90,480 45.9% 2PP Household 112,157 36.6%44,706 26.3%121,121 37.0%53,869 27.3% 3PP Household 47,338 15.5%20,044 11.8%49,755 15.2%22,577 11.5% 4PP Household 42,878 14.0%13,330 7.9%46,687 14.3%15,812 8.0% 5PP Household 16,863 5.5%6,653 3.9%16,890 5.2%7,664 3.9% 6PP Household 5,442 1.8%3,255 1.9%6,021 1.8%3,809 1.9% 7PP+ Household 4,245 1.4%3,195 1.9%3,773 1.2%2,847 1.4% Total 306,121 100.0%169,792 100.0%327,245 100.0%197,058 100.0% Size Number Pct.Number Pct.Number Pct.Number Pct. 1PP Household 171,241 21.9%147,789 44.1%189,443 22.2%171,343 43.3% 2PP Household 280,552 35.9%87,139 26.0%312,169 36.6%107,939 27.2% 3PP Household 128,197 16.4%42,563 12.7%136,423 16.0%48,872 12.3% 4PP Household 123,219 15.7%29,587 8.8%133,425 15.6%35,469 9.0% 5PP Household 50,854 6.5%14,883 4.4%53,681 6.3%17,955 4.5% 6PP Household 16,887 2.2%6,908 2.1%17,334 2.0%8,357 2.1% 7PP+ Household 11,525 1.5%6,405 1.9%10,760 1.3%6,207 1.6% Total 782,475 100.0%335,274 100.0%853,234 100.0%396,141 100.0% Sources: U.S. Census Bureau; Maxfield Research and Consulting LLC Owner Occupied Renter Occupied Owner Occupied Renter Occupied TABLE D-11 TENURE BY HOUSEHOLD SIZE EDINA MARKET AREA 2010 AND 2019 HENNEPIN COUNTY REMAINDER OF PRIMARY MARKET AREA 2010 2019 Owner Occupied Renter Occupied Owner Occupied Renter Occupied 2019 CITY OF EDINA 2010 2010 2019 Owner Occupied Renter Occupied Owner Occupied Renter Occupied TWIN CITIES METRO AREA 2010 2019 Owner Occupied Renter Occupied Owner Occupied Renter Occupied DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 35 • An estimated 76% of renter households in Edina in 2019 have either one or two people. One-person households are likely to seek smaller homes, while two-person households may prefer larger homes or apartments. Two-person households with a parent and child or roommate are likely to prefer at least a two-bedroom apartment or a modest size home. Only an estimated 24% of renter households in Edina in 2019 had three or more people in the household. Diversity The population distribution by race, Table D-12, presents the diversity of the population in Edina, the Remainder of the PMA, Hennepin County and the Twin Cities Metro for 2010 and 2019. The data was obtained from the U.S. Census. • In 2019, “White Alone” comprised the largest proportion of the population in Edina (86.9%), the Remainder of the PMA (84.5%), Hennepin County (74.6%) and the Metro Area (78.6%). The percentage has decreased since 2010 where “White Alone” was 88.7% in Edina. • U.S. Census respondents that list themselves ethnically as Hispanic or Latino, racially list themselves in various race categories. As of 2019, 3.1% of Edina’s population self-identified as Hispanic/Latino. The Hispanic/Latino population was 2.4% of Edina’s population in 2010. • “Black or African American Alone” decreased from 1,424 people in 2010 to 1,009 and “Na- tive Hawaiian or Pacific Islander Alone” also decreased from 16 people in 2010 to 0 people in 2019. • The greatest increase in population by race in Edina were “Asian Alone” which increased from 2,914 people in 2010 to 4,271 people in 2019, an estimated increase of 46.6%. -100.0%-50.0%0.0%50.0%100.0% White Alone Black or African American Alone American Indian or Alaska Native Alone (AIAN) Native Hawaiian or Pacific Islander Alone (NHPI) Asian Alone Some Other Race Two or More Races Alone Hispanic or Latino (Ethnicity)Race/EthnicityPercent Change in Race and Ethnicity, CIty of Edina, 2010-2019 DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 36 2010 2019 2010 2019 2010 2019 2010 2019 2010 2019 2010 2019 2010 2019 2010 2019 Number Edina 41,535 44,812 1,424 1,009 78 83 16 0 2,914 4,271 88 151 785 1,215 1,101 1,584 Remainder of PMA 125,814 128,626 6,880 8,900 332 330 41 130 7,905 9,502 225 267 3,154 4,551 4,615 6,463 Hennepin County 826,670 868,921 134,240 156,789 8,848 6,640 431 406 71,535 86,983 2,321 2,980 30,704 41,280 77,676 85,776 Twin Cities Metro 2,173,218 2,306,414 234,334 283,020 17,452 14,561 1,091 1,017 182,496 227,365 4,609 6,007 68,809 95,913 167,558 194,661 Percentage Edina 88.7%86.9%3.0%2.0%0.2%0.2%0.0%0.0%6.2%8.3%0.2%0.3%1.7%2.4%2.4%3.1% Remainder of PMA 87.2%84.5%4.8%5.8%0.2%0.2%0.03%0.09%5.5%6.2%0.2%0.2%2.2%3.0%3.2%4.2% Hennepin County 76.9%74.6%12.5%13.5%0.8%0.6%0.04%0.03%6.7%7.5%0.2%0.3%2.9%3.5%7.2%7.4% Twin Cities Metro 81.0%78.6%8.7%9.6%0.7%0.5%0.04%0.03%6.8%7.7%0.2%0.2%2.6%3.3%6.2%6.6% Note: Hispanic/Latino totals included within the other race categories. TABLE D-12 POPULATION DISTRIBUTION BY RACE EDINA MARKET AREA 2010 & 2019 Sources: U.S. Census Bureau; Maxfield Research and Consulting, LLC Hispanic or Latino (Ethnicity)White Alone Black or African American Alone American Indian or Alaska Native Alone (AIAN) Native Hawaiian or Pacific Islander Alone (NHPI) Asian Alone Some Other Race Two or More Races Alone DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 37 Mobility in the Past Year Table D-13 shows the mobility patterns of residents in Edina, the Remainder of the PMA, Hennepin County and the Twin Cities Metro within a one-year time frame. • Most residents in Edina (88.3%) did not move within the last year. • Of Edina residents that moved, most were likely to move within the county (6.1%). • In all geographies, those Under 18 and ages 25 to 34 were most likely to report a move. Of residents in Edina who reported a move, 18% were Under 18 and 33% were ages 25 to 34. • In Edina, a higher proportion of 25- to 34-year olds were more likely to move (33%) com- pared to the Remainder of the PMA (31%), Hennepin County (30%) and the Twin Cities Metro Area (28%). • After age 35, mobility declines through age 74. There is a slight uptick in mobility among those over age 75 in all areas. This reflects older seniors leaving their single-family homes for alternate housing options. 0% 5% 10% 15% 20% 25% 30% 35% Under 18 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 to 74 75+Percentage of People Who Moved in Last YearPercent of People Who Moved in Last Year by Age, 2019 Edina Remainder of PMA Hennepin County Twin Cities Metro DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 38 Edina Age No.Pct.No.Pct.No.Pct.No.Pct.No.Pct. Under 18 11,179 90.9%549 4.5%96 0.8%275 2.2%200 1.6% 18 to 24 1,718 79.4%204 9.4%71 3.3%134 6.2%38 1.8% 25 to 34 3,475 62.9%1,007 18.2%253 4.6%328 5.9%458 8.3% 35 to 44 5,814 87.4%356 5.4%146 2.2%277 4.2%59 0.9% 45 to 54 7,436 92.7%287 3.6%108 1.3%71 0.9%118 1.5% 55 to 64 6,809 94.9%225 3.1%96 1.3%37 0.5%10 0.1% 65 to 74 5,182 94.6%192 3.5%30 0.5%58 1.1%17 0.3% 75+5,320 91.6%398 6.8%22 0.4%66 1.1%4 0.1% Total 46,934 88.3%3,218 6.1%824 1.6%1,245 2.3%904 1.7% Remainder of PMA Age No.Pct.No.Pct.No.Pct.No.Pct.No.Pct. Under 18 27,388 87.1%2,845 9.1%628 2.0%500 1.6%69 0.2% 18 to 24 6,409 65.3%1,450 14.8%1,192 12.1%676 6.9%96 1.0% 25 to 34 15,891 69.2%3,988 17.4%1,581 6.9%1,229 5.4%262 1.1% 35 to 44 17,689 85.8%1,820 8.8%387 1.9%606 2.9%119 0.6% 45 to 54 21,384 91.5%1,261 5.4%376 1.6%270 1.2%84 0.4% 55 to 64 22,160 94.0%850 3.6%159 0.7%263 1.1%152 0.6% 65 to 74 14,075 94.0%649 4.3%49 0.3%185 1.2%16 0.1% 75+11,100 92.4%743 6.2%50 0.4%99 0.8%22 0.2% Total 136,095 85.7%13,606 8.6%4,422 2.8%3,828 2.4%818 0.5% Hennepin County Age No.Pct.No.Pct.No.Pct.No.Pct.No.Pct. Under 18 228,527 86.4%23,181 8.8%5,652 2.1%4,610 1.7%2,431 0.9% 18 to 24 65,176 58.4%22,930 20.6%13,226 11.9%8,524 7.6%1,679 1.5% 25 to 34 151,394 70.0%37,247 17.2%13,211 6.1%11,061 5.1%3,369 1.6% 35 to 44 143,403 85.9%14,605 8.7%3,847 2.3%3,698 2.2%1,402 0.8% 45 to 54 150,413 89.8%11,124 6.6%3,029 1.8%2,307 1.4%580 0.3% 55 to 64 148,108 92.9%7,312 4.6%1,972 1.2%1,581 1.0%520 0.3% 65 to 74 87,275 93.5%3,910 4.2%818 0.9%948 1.0%370 0.4% 75+64,349 91.5%4,101 5.8%909 1.3%682 1.0%296 0.4% Total 1,038,643 83.1%124,411 10.0%42,663 3.4%33,412 2.7%10,645 0.9% Twin Cities Metro Age No.Pct.No.Pct.No.Pct.No.Pct.No.Pct. Under 18 616,334 86.7%54,697 7.7%23,973 3.4%10,626 1.5%5,088 0.7% 18 to 24 183,255 66.0%41,473 14.9%33,385 12.0%16,279 5.9%3,244 1.2% 25 to 34 347,454 72.4%65,123 13.6%40,675 8.5%20,656 4.3%6,006 1.3% 35 to 44 358,234 86.3%30,637 7.4%15,783 3.8%7,637 1.8%2,745 0.7% 45 to 54 400,242 91.0%23,127 5.3%10,796 2.5%4,530 1.0%1,252 0.3% 55 to 64 375,779 93.2%15,465 3.8%7,057 1.8%3,584 0.9%1,280 0.3% 65 to 74 220,591 93.9%7,470 3.2%3,849 1.6%2,080 0.9%906 0.4% 75+152,869 91.2%8,694 5.2%3,897 2.3%1,615 1.0%570 0.3% Total 2,654,759 84.8%246,686 7.9%139,414 4.5%67,008 2.1%21,091 0.7% Sources: American Community Survey; Maxfield Research and Consulting LLC Same House Within Same County Different County Same State Different State Abroad Same House Within Same County Different County Same State Different State Abroad Same House Within Same County Different County Same State Different State Abroad Same House Within Same County AbroadDifferent County Same State Different State Moved TABLE D-13 MOBILITY IN THE PAST YEAR BY AGE FOR CURRENT RESIDENCE EDINA MARKET AREA 2019 Did Not Move DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 39 Summary of Demographic Trends The following points summarize key demographic trends that will impact demand for housing in Edina. • The population in Edina grew by 10.8% (5,183 people) and 2,545 households (12.3%) be- tween 2010 and 2019. Population growth is expected to continue to 2040, with a forecast population growth of 11% (5,900 people) and 3,700 households between 2020 and 2040. • Median incomes are projected to rise in Edina, with a 10.2% increase forecast between 2019 and 2024, from $107,757 to $118,770. • As incomes rise, the proportion of homeowners usually also rises. This historical trend has experienced a shift however, in the past decade as an increasing number of higher income households are electing to rent rather than own their housing. This includes younger and older households, those financially able to own, but choose to rent. These households usu- ally have incomes of $50,000 or higher. This accounted for an estimated 55% of Edina’s renter households in 2019. • The proportion of homeowners increases as households age beginning with age 25. Home- owner households reached the highest ownership proportion at 83% for those ages 45 to 54. Households ages 25 to 34 had a homeownership rate of 38.4%. Households 85 years or older had a homeownership rate of 58% as this group often elects to relocate to housing options with support services. • Between 2010 and 2019, all household types increased in Edina although the proportion of households shifted during the period. Roommate households experienced the largest per- centage increase (33%) and Married Couples with Children had the largest numerical in- crease (1,038 households-21%). • Renter households are most likely to be composed of one person (47% of renter house- holds), followed by two-person households (28% of renter households). • In 2019, “White Alone” comprised the largest proportion of the population in Edina, ac- counting for 87% of the total. This proportion represents a decrease of -1.8% in the “White Alone” population from 2010. • From 2010 to 2019, people that self-identify as Asian Alone increased by 1,357 people (2.1%) in Edina and people that self-identify as Hispanic or Latino Ethnicity increased by 483 people (0.7%). DEMOGRAPHIC ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 40 • Most Edina residents (88.3%) did not move within the last year. Of those who moved (18.1%), they were most likely to be Under 18 or 25 to 34 and most moved within the same County. Mobility drops after age 34 but rises again beginning with households age 75 years or older. Fully 90% or more of householders ages 45+ however, did not move within the last year. Older age cohorts may elect to relocate to alternative housing and the oldest households may choose to relocate to housing that provides additional support services. • Recent national findings on mobility have identified that younger households are relocating less often than in the past. There is little qualitative data on this trend as to why younger households are less mobile. Some are speculating that they may be less likely to move just to take a new job and are evaluating more carefully a move because of other implications such as higher cost of living. EMPLOYMENT MAXFIELD RESEARCH AND CONSULTING, LLC 41 Introduction Since employment growth generally fuels household growth, employment trends are a reliable indicator of housing demand. Typically, households prefer to live near work for convenience. Employment Growth and Projections Table E-1 shows projected employment growth in Edina, Hennepin County and the Twin Cities Metro Area. Table E-1 shows employment growth trends and projections from 2000 to 2040 based on the most recent Minnesota Department of Employment and Economic Development (DEED) and Metropolitan Council employment projections, with adjustments calculated by Maxfield Research to reflect current estimates and forecasts. • There were an estimated 47,457 jobs in Edina in 2010, which was 5.9% of the County total (805,089 jobs). • From 2010 through 2nd Quarter 2019, place of work employment has fluctuated. The graph on the following page shows how jobs in Edina increased during the recession, decreased as the recovery began, then increased again each year, peaking in 2016. In 2017 and 2018, the number of jobs in Edina decreased. A modest increase occurred again in 2019. • Industry sectors experiencing job losses include Manufacturing, Wholesale and Retail Trade, Real Estate and Leasing, Professional and Business Services and Support of Waste Manage- ment and Remediation. Conversely, employment increases were strong in these sectors in Hennepin County and the Twin Cities Metro Area during the same period. As of 2nd Quarter 2019, Edina had an estimated 44,899 jobs. The Metropolitan Council forecasts that employ- ment in Edina will continue to increase to 2040. Locally based employment supports de- mand for housing and increases in individual industry sectors informs the types of housing that may be needed to assist households that want to live and work in Edina. 2000 2010 2019 2020 2030 2040 No.Pct.No.Pct.No.Pct.No.Pct. Edina 53,124 47,457 44,899 45,544 51,994 59,357 -5,667 -10.7%-1,913 -4.0%6,450 14.2%7,363 12.4% Hennepin County 874,882 805,089 938,674 946,500 981,700 1,038,040 -69,793 -8.0%141,411 17.6%35,200 3.7%56,340 5.4% Twin Cities Metro Area 1,600,741 1,543,872 1,780,812 1,828,000 1,910,000 2,039,000 -56,869 -3.6%284,128 18.4%82,000 4.5%129,000 6.3% * 2019 Data is from MNDEED Quarterly Census of Employment and Wages (2nd Quarter 2019) Note: Twin Cities Metro represents the 7-County planning region Sources: MN Dept of Employment and Economic Development; Metropolitan Council; Maxfield Research & Consulting, LLC. 2030-2040 Change 2000-2010 2020-2030 Employment 2010-2020Estimated Actual Forecast TABLE E-1 EMPLOYMENT GROWTH TRENDS AND PROJECTIONS EDINA, HENNEPIN CO. AND TWIN CITIES METRO AREA 2000-2040 EMPLOYMENT MAXFIELD RESEARCH AND CONSULTING, LLC 42 • Edina’s employment base is forecast to grow by 14.2% between 2020 and 2030 with em- ployment estimated at almost 52,000 jobs by 2030 and 53,500 jobs by 2040. • The chart shows the number of covered jobs in Edina from 2010 through 2nd Quarter 2019, demonstrating the fluctuations that occurred. Resident Labor Force and Workplace Employment Recent employment trends are shown in Tables E-2 and E-3. Table E-2 presents resident em- ployment data for Edina from 2000 through 2019. The numbers are compiled from data pub- lished by the Minnesota Department of Employment and Economic Development (MNDEED). MNDEED compiles data for large cities in the state and Edina is one of those large cities. Resi- dent employment data is calculated as an annual average and reveals the work force and num- ber of employed people living in the City. Not all these individuals work in the City or in Henne- pin County. Table E-3 presents covered employment data for Edina from 2000 through the 2nd quarter 2019. Covered employment data is calculated as an annual average and reveals the number of jobs in the designated area, which are covered by unemployment insurance. Many temporary workforce positions, agricultural, self-employed persons, and some other types of jobs are not covered by unemployment insurance and are not included in the table. Some agri- cultural businesses and employees are listed in Table E-3, but not all positions are included. The following are key trends derived from the employment data: EMPLOYMENT MAXFIELD RESEARCH AND CONSULTING, LLC 43 Labor Year Force Employed Unemployed Rate 2010 23,844 22,477 1,367 5.7% 2011 24,110 22,890 1,220 5.1% 2012 24,198 23,121 1,077 4.5% 2013 24,309 23,378 931 3.8% 2014 24,317 23,547 770 3.2% 2015 24,475 23,774 701 2.9% 2016 24,796 24,028 768 3.1% 2017 25,325 24,608 717 2.8% 2018 26,246 25,654 592 2.3% 2019 1 26,667 25,900 767 2.9% Change 2010-2019 1 Number 2,823 3,423 -600 -- Percent 11.8%15.2%-43.9%-- 2010 650,891 605,294 45,597 7.0% 2011 656,063 616,331 39,732 6.1% 2012 659,812 625,310 34,502 5.2% 2013 666,831 636,298 30,533 4.6% 2014 672,373 646,952 25,421 3.8% 2015 676,722 654,583 22,139 3.3% 2016 687,472 664,578 22,894 3.3% 2017 698,548 677,696 20,852 3.0% 2018 703,310 685,853 17,457 2.5% 2019 1 719,849 698,905 20,944 2.9% Change 2010-2019 1 Number 68,958 93,611 -24,653 -- Percent 10.6%15.5%-54.1%-- 2010 1,593,385 1,479,385 114,000 7.2% 2015 1,649,759 1,594,798 54,961 3.3% 2019 1 1,748,746 1,697,873 50,873 2.9% 2010 2,938,795 2,721,194 217,601 7.4% 2015 2,997,748 2,887,132 110,616 3.7% 2019 1 3,130,214 3,036,377 93,837 3.0% 1 Through August 2019 not seasonally adjusted MINNESOTA Sources: MN Department of Employment and Economic Development; Maxfield Research and Consulting LLC TABLE E-2 ANNUAL AVERAGE RESIDENT EMPLOYMENT EDINA MN 2010 to 2019 1 EDINA TWIN CITIES METRO AREA HENNEPIN COUNTY EMPLOYMENT MAXFIELD RESEARCH AND CONSULTING, LLC 44 Resident Employment • The labor force and resident employment (number of people employed) that live in Edina increased from 2010 through August 2019 by 2,823 people and 3,423 people, respectively. The unemployment rate decreased from 5.7% to 2.9% (2010/2019). This was equal to that of Hennepin County and the Twin Cities Metro Area. • The unemployment rate decreased from 5.7% to 2.9% (2010/2019). This was equal to that of Hennepin County and the Twin Cities Metro Area. • Edina’s unemployment rate has remained the same or lower than Hennepin County’s and Minnesota’s unemployment rates since 2010. The greatest difference between Edina (5.7%) and Hennepin County (7%) was in 2010, a difference of 1.3%. • In 2010, Hennepin County’s unemployment rate was highest at 7.0%, the period of the re- cession. Since that time, the unemployment rate has steadily decreased to a low of 2.9% as of August 2019, which is considered less than full employment (approximately 5.0%). Covered Employment by Industry • From 2010 through 2nd Quarter 2019 (most recent data available), the number of jobs in Edina is estimated to have decreased by -2,576, or -4.4%. Categories that experienced the greatest decreases include: Finance and Insurance and Support of Waste Management and Remediation. The industry that gained the most jobs during the period was: Health Services (3,095 jobs, 42.3%). EMPLOYMENT MAXFIELD RESEARCH AND CONSULTING, LLC 45 • Average weekly wages rose steadily over the period (2010 through 2nd Quarter 2019) in- creasing by 23.7% or an average annual increase of 1.95%. The U.S average annual twelve- month inflation rate as of September 2019 was 1.7%. Total Employment Industry 2000 2005 2010 2015 2019*No.Pct.2000 2005 2010 2015 2019* Natural Resources & Mining ------------------------ Manufacturing 4,395 2,708 1,755 1,685 1,635 -120 -2.7%8.3%5.6%3.7%3.3%3.6% Wholesale Trade 3,110 1,930 1,508 1,677 1,215 -293 -9.4%5.9%4.0%3.2%3.3%2.7% Retail Trade 7,176 6,455 5,148 5,796 4,312 -836 -11.6%13.5%13.4%10.8%11.4%9.6% Transportation & Warehousing ------------------------ Information 1,229 1,028 683 786 728 45 3.6%2.3%2.1%1.4%1.6%1.6% Finance & Insurance 4,688 5,433 5,542 4,236 2,529 -3,013 -64.3%8.8%11.3%11.7%8.4%5.6% Real Estate & Leasing 2,728 1,979 1,677 1,518 1,399 -278 -10.2%5.1%4.1%3.5%3.0%3.1% Professional & Business Services 6,573 5,013 4,942 4,922 5,040 98 1.5%12.4%10.4%10.4%9.7%11.2% Management of Companies 590 676 1,963 2,008 1,946 -17 -2.9%1.1%1.4%4.1%4.0%4.3% Support of Waste Mgmt & Remediation 5,758 5,754 6,022 7,016 4,373 -1,649 -28.6%10.8%11.9%12.7%13.9%9.7% Education 1,566 1,713 2,079 1,922 2,203 124 7.9%2.9%3.6%4.4%3.8%4.9% Health Services 7,319 7,692 7,788 9,872 10,883 3,095 42.3%13.8%15.9%16.4%19.5%24.2% Leisure & Hospitality 875 675 546 901 915 369 42.2%1.6%1.4%1.1%1.8%2.0% Accommodation & Food Services 2,416 3,110 3,475 3,112 3,248 -227 -9.4%4.5%6.4%7.3%6.1%7.2% Other Services 2,528 2,437 1,897 2,248 2,437 540 21.4%4.8%5.1%4.0%4.4%5.4% Public Administration 276 422 327 383 481 154 55.8%0.5%0.9%0.7%0.8%1.1% Totals 53,124 48,240 47,475 50,622 44,899 -2,576 -4.8% Average Weekly Wages Percent Difference From Overall Average Industry 2000 2005 2010 2015 2019*No.Pct.2000 2005 2010 2015 2019* Natural Resources & Mining ------------------------ Manufacturing $1,275 $1,203 $1,186 $1,465 $1,358 $172 13.5%51.2%26.8%12.7%19.7%8.5% Wholesale Trade $1,436 $1,322 $1,548 $1,843 $2,321 $773 53.8%70.3%39.3%47.1%50.6%85.4% Retail Trade $416 $402 $460 $722 $639 $179 43.0%-50.7%-57.6%-56.3%-41.0%-49.0% Transportation & Warehousing ------------------------ Information $1,018 $1,245 $1,403 $1,839 $1,826 ----20.8%31.2%33.3%50.2%45.8% Finance & Insurance $1,219 $1,774 $1,884 $2,352 $2,217 $333 27.3%44.6%86.9%79.1%92.2%77.1% Real Estate & Leasing $834 $879 $875 $1,356 $1,262 $387 46.4%-1.1%-7.4%-16.8%10.8%0.8% Professional & Business Services $1,163 $1,275 $1,505 $1,843 $1,845 $340 29.2%38.0%34.4%43.1%50.6%47.4% Management of Companies $1,420 $1,758 $1,587 $1,944 $1,642 $55 3.9%68.4%85.2%50.9%58.8%31.2% Support of Waste Mgmt & Remediation $571 $565 $569 $686 $980 $411 72.0%-32.3%-40.5%-45.9%-44.0%-21.7% Education $660 $727 $752 $918 $896 $144 21.8%-21.7%-23.4%-28.5%-25.0%-28.4% Health Services $750 $1,017 $1,200 $1,264 $1,270 $70 9.3%-11.0%7.2%14.1%3.3%1.4% Leisure & Hospitality $311 $371 $485 $428 $472 -$13 -4.2%-63.1%-60.9%-53.9%-65.0%-62.3% Accommodation & Food Services $271 $305 $390 $407 $474 $84 31.0%-67.9%-67.9%-62.9%-66.7%-62.1% Other Services $577 $885 $584 $643 $742 $158 27.4%-31.6%-6.7%-44.5%-47.5%-40.7% Public Administration $888 $853 $1,163 $1,287 $1,324 $161 18.1%5.3%-10.1%10.6%5.1%5.8% $843 $949 $1,052 $1,224 $1,252 $200 23.7% * through 2nd Quarter 2019 Note: Industry titles based on the North American Industrial Classification Codes (NAICS) Source: Minnesota Workforce Center; Maxfield Research & Consulting, LLC Change 2010 - 2019* TABLE E-3 Change 2010 - 2019*% of Total 2000, 2005, 2010, 2015, 2019* EDINA, MN COVERED EMPLOYMENT TRENDS Average Number of Employees Percent of Total Employment EMPLOYMENT MAXFIELD RESEARCH AND CONSULTING, LLC 46 • Employment has continued to fluctuate in Edina between 2010 and 2019, although overall employment in Hennepin County and the Twin Cities Metro Area has continued to steadily increase. MN DEED and Metropolitan Council employment outlook projections expect em- ployment to increase in Edina, Hennepin County and the Metro Area. Employment, Earnings, and Employment by Educational Attainment Table E-4 displays information on employment by earnings; Table E-5 identifies employment by educational attainment and Table E-6 is a summary of businesses in Edina. The employment by earnings is sourced from the US Census, Local Employment-Household Dynamics data (LEHD) and employment by educational attainment is sourced from the US Census (American Commu- nity Survey data) as of 2017. The business summary for Edina is sourced from Minnesota DEED for 1st Quarter 2019, the most recent data available. Minnesota DEED obtains its business data under the Unemployment Insurance (UI) Program which requires all establishments to report wage and employment statistics quarterly to DEED. Federal government establishments are also covered by this program. Certain industries in Table E-6 may not display any information which means there is either no reported economic activity for that industry or the data has been suppressed to protect the confidentiality of cooperating employers. This generally occurs when there are too few em- ployers or one employer comprises too much of the employment in that geography. • As of 2017, an estimated 62.5% of Edina employees earned more than $3,333 per month (14,611). This is higher than Hennepin County (52.9%) and the Metro Area (52.5%) of em- ployees that make more than $3,333 per month. Edina has a lower proportion of employ- ees that make between $1,251 to $3,333 per month (17.9%) and employees that make $1,250 per month or less (19.6%) than Hennepin County or the Twin Cities Metro Area. • As of 2017, of those in the labor force, 77.8% have a bachelor’s or advanced degree (16,571). This is substantially higher than Hennepin County (53.3%) and the Metro Area at 47.5%. • For those in the labor force that are employed, 78.2% have a bachelor’s or advanced degree in Edina, compared to 54.1% in Hennepin County and 48.2% in the Twin Cities Metro Area. • For those in the labor force that are unemployed, the highest proportion in Edina has a bachelor’s or advanced degree (65.1%). This compares to 34% in Hennepin County and 30.6% in the Twin Cities Metro Area. A somewhat smaller proportion in each jurisdiction has some college or associate degree. EMPLOYMENT MAXFIELD RESEARCH AND CONSULTING, LLC 47 Type No.Pct.No.Pct.No.Pct. $1,250/month or less 4,586 19.6%139,544 21.5%350,361 21.8% $1,251 to $3,333/month 4,197 17.9%165,676 25.6%413,687 25.7% More than $3,333/month 14,611 62.5%342,384 52.9%843,429 52.5% Total 23,394 100.0%647,604 100.0%1,607,477 100.0% Sources: US Census Bureau; Maxfield Research & Consulting, LLC TABLE E-4 EMPLOYMENT BY EARNINGS CITY OF EDINA 2017 Edina Hennepin County Metro Area Type No.Pct.No.Pct.No.Pct. In Labor Force Less Than High School 232 1.1%29,787 5.0%103,067 6.2% High School or Equivalent, No College 1,222 5.6%79,964 13.5%295,274 17.8% Some College or Associate Degree 3,501 16.2%160,624 27.2%501,572 30.2% Bachelor's Degree or Advanced Degree 16,677 77.1%319,864 54.2%759,994 45.8% Total 21,632 100.0%590,239 100.0%1,659,907 100.0% Not In Labor Force Less Than High School 217 5.1%15,247 15.2%35,964 14.7% High School or Equivalent, No College 421 9.8%22,333 22.3%61,608 25.2% Some College or Associate Degree 676 15.8%27,827 27.7%72,134 29.5% Bachelor's Degree or Advanced Degree 2,975 69.4%34,872 34.8%74,764 30.6% Total 4,289 100.0%100,279 100.0%244,470 100.0% Employed (In Labor Force) Less Than High School 231 1.1%26,961 4.7%67,103 4.7% High School or Equivalent, No College 1,150 5.5%75,816 13.3%233,666 16.5% Some College or Associate Degree 3,223 15.4%153,543 27.0%429,438 30.3% Bachelor's Degree or Advanced Degree 16,321 78.0%312,956 55.0%685,230 48.4% Total 20,925 100.0%569,276 100.0%1,415,437 100.0% Unemployed (In Labor Force) Less Than High School 1 0.1%2,826 13.6%5,666 12.5% High School or Equivalent, No College 72 10.2%4,148 20.0%10,829 23.9% Some College or Associate Degree 278 39.3%6,966 33.6%14,947 32.9% Bachelor's Degree or Advanced Degree 356 50.4%6,778 32.7%13,962 30.8% Total 707 100.0%20,718 100.0%45,404 100.0% Total 25,921 100.0%690,518 100.0%1,904,377 100.0% Sources: US Census Bureau; Maxfield Research & Consulting, LLC TABLE E-5 EMPLOYMENT BY EDUCATIONAL ATTAINMENT CITY OF EDINA 2018 Edina Hennepin County Metro Area EMPLOYMENT MAXFIELD RESEARCH AND CONSULTING, LLC 48 • As of 2019, there were an estimated 2,751 businesses with 44,899 employees in Edina. Data from MN DEED by industry sector disclosed a total of 2,626 businesses with an esti- mated 43,344 employees. • The top three industry sectors by size of business establishment were: Professional, Scientific and Technical Services (461 businesses) Health Care and Social Assistance (389 businesses) Other Services (except Public Administration (370 businesses) • The top three industry sectors by number of employees were: Health Care and Social Assistance (10,883 employees) Professional, Scientific and Technical Services (5,040 employees) Administrative & Support & Waste Mgmt and Remediation Services (4,373 employees) Business/Industry Number Pct Number Pct Agriculture, Forestry, Fishing and Hunting 0 0.0%0 0.0% Mining 0 0.0%0 0.0% Utilities 0 0.0%0 0.0% Construction 0 0.0%0 0.0% Manufacturing 66 2.5%1,635 3.8% Wholesale Trade 171 6.5%1,215 2.8% Retail Trade 252 9.6%4,312 9.9% Transportation & Warehousing 0 0.0%0 0.0% Information 56 2.1%728 1.7% Finance & Insurance 263 10.0%2,529 5.8% Real Estate, Rental & Leasing 209 8.0%1,399 3.2% Professional, Scientific & Tech Services 461 17.6%5,040 11.6% Management of Companies & Enterprises 36 1.4%1,946 4.5% Admin & Support & Waste Management & Remediation Services 113 4.3%4,373 10.1% Educational Services 64 2.4%2,203 5.1% Health Care & Social Assistance 389 14.8%10,883 25.1% Arts, Entertainment & Recreation 42 1.6%915 2.1% Accommodation & Food Services 132 5.0%3,248 7.5% Other Services (except Public Administration)370 14.1%2,437 5.6% Public Administration 2 0.1%481 1.1% Unclassified Establishments 0 0.0%0 0.0% Total of Columns**2,626 100.0%43,344 100.0% Total Per MN DEED 2,751 44,899 ** Totals may not sum to individual line items due to disclosure regulations by MN DEED. Sources: Minnesota Department of Employment and Economic Developent, Maxfield Research & Consulting, LLC INDUSTRY SECTOR Businesses Employees TABLE E-6 BUSINESS SUMMARY - BY INDUSTRY SECTOR EDINA MN 2nd Quarter 2019 EMPLOYMENT MAXFIELD RESEARCH AND CONSULTING, LLC 49 • Health Care and Social Assistance accounts for 25.1% of employees by industry sector in Edina, followed by Professional, Scientific and Technical Services (11.6%) and Administrative & Support & Waste Mgmt and Remediation Services (10.1%). Commuting Patterns Proximity to employment is often a primary consideration when choosing where to live, since transportation costs often account for a large proportion of households’ budgets. Table E-7 highlights the commuting patterns of workers in Edina in 2017 (the most recent data available), based on Local Employer-Household Dynamics data (LEHD) from the U.S. Census Bureau. • As shown in Table E-7, 2,873 Edina residents commuted to jobs in Edina. Most employees that live in Edina commuted to jobs in Minneapolis 5,504. • An estimated 11,848 workers commute at least 30 minutes or more to Edina for work. This is an estimated 27% of all workers in Edina. Place of Residence Count Share Place of Employment Count Share Minneapolis city, MN 6,123 26.2%Minneapolis city, MN 5,504 12.6% Edina city, MN 2,873 12.3%Edina city, MN 2,873 6.6% Bloomington, city, MN 2,155 9.2%Bloomington city, MN 2,600 5.9% Eden Prairie city, MN 1,251 5.3%St Paul city, MN 1,980 4.5% St Paul city, MN 1,231 5.3%Eden Prairie city, MN 1,865 4.3% St Louis Park city, MN 1,096 4.7%Richfield city, MN 1,254 2.9% Minnetonka city, MN 922 3.9%St Louis Park city, MN 1,241 2.8% Golden Valley city, MN 602 2.6%Minnetonka city, MN 1,157 2.6% Plymouth city, MN 592 2.5%Plymouth city, MN 1,121 2.6% Eagan city, MN 514 2.2%Eagan city, MN 1,042 2.4% All Other Locations 6,035 25.8%All Other Locations 23,134 52.9% Distance Traveled Distance Traveled Total Primary Jobs 23,394 100.0%Total Primary Jobs 43,771 100.0% Less than 10 miles 17,250 73.7%Less than 10 miles 20,376 46.6% 10 to 24 miles 4,834 20.7%10 to 24 miles 17,234 39.4% 25 to 50 miles 306 1.3%25 to 50 miles 3,393 7.8% Greater than 50 miles 1,004 4.3%Greater than 50 miles 2,768 6.3% Home Destination = Where workers live who are employed in Edina. Work Destination = Where workers are employed who live in Edina. Sources: US Census Bureau Local Employment Dynamics; Maxfield Research and Consulting LLC TABLE E-7 COMMUTING PATTERNS CITY OF EDINA 2017 Home Destination Work Destination EMPLOYMENT MAXFIELD RESEARCH AND CONSULTING, LLC 50 Inflow/Outflow Table E-8 provides a summary of the inflow and outflow of workers in Edina. Outflow reflects the number of workers living in Edina but employed outside of the city while inflow measures the number of workers that are employed in Edina but live outside. Interior flow reflects the number of workers that both live and work in Edina. • Edina is considered a major importer of workers, as the number of workers coming into the City (inflow) for employment was more than the number of workers leaving the City for work (outflow). An estimated 40,898 workers came into Edina for work while 20,521 work- ers left, a net inflow 20,377 workers to Edina. City of Edina 20,521 100.0%40,898 100.0%2,873 100.0% By Age Workers Aged 29 or younger 3,813 18.6%9,890 24.2%612 21.3% Workers Aged 30 to 54 11,214 54.6%22,982 56.2%1,334 46.4% Workers Aged 55 or older 5,494 26.8%8,026 19.6%927 32.3% By Monthly Wage Workers Earning $1,250 per month or less 3,655 17.8%9,086 22.2%931 32.4% Workers Earning $1,251 to $3,333 per month 3,491 17.0%10,601 25.9%706 24.6% Workers Earning More than $3,333 per month 13,375 65.2%21,211 51.9%1,236 43.0% By Industry "Goods Producing"1,903 9.3%2,354 5.8%82 2.9% "Trade, Transportation, and Utilities"3,298 16.1%4,674 11.4%466 16.2% "All Other Services"*15,320 74.7%33,870 82.8%2,325 80.9% Sources: US Census Bureau Local Employment Dynamics; Maxfield Research & Consulting, LLC *includes the following sectors: Information, Financial Activities, Professional & Business Services, Education & Health Services, Leisure & Hospitality, Other Services, and Public Administration TABLE E-8 COMMUTING INFLOW/OUTFLOW CHARACTERISTICS CITY OF EDINA 2017 Outflow Inflow Interior Flow EMPLOYMENT MAXFIELD RESEARCH AND CONSULTING, LLC 51 Commuter Inflow-Outflow Map Source: US Census: Longitudinal Employment-Household Dynamics, 2017 EMPLOYMENT MAXFIELD RESEARCH AND CONSULTING, LLC 52 Major Employers Table E-9 shows the major employers in Edina based on data provided by the City. This table is not a comprehensive list of all employers and presents a selected list of the largest employers with estimated employment. The following are key points from the major employers table. • Fairview Southdale Hospital is identified as the largest employer. Including hospital, medi- cal professional and staff employees, the Hospital is estimated to employ 1,624 workers. BI Worldwide, a marketing consulting services provider employs an estimated 1,000 people. Regis Corporation is estimated to employ 900 workers. Regis Corporation recently relo- cated its corporate headquarters from Edina to Minneapolis to the former Target building on Interstate 394, just west of Downtown Minneapolis. City Center Realty Partners, a San- Francisco based private equity firm purchased the building and plans a full renovation and remarketing of the building. • The list of major employers represents several industry sectors. The largest is the Health Services sector followed by Professional, Business and Technical Services and Real Estate. • The top two employers account for nearly 44% of the employment at the top 10 major em- ployers in Edina. These employers are considered top employers Metro-wide and attract a substantial number of employees. • Together, the top ten employers in Edina are estimated to employ nearly 6,000 workers or 13% of total employment as of 2019. • As of 2nd Quarter 2019, the average weekly wage in Edina was $1,252 among all industries; Finance and Insurance had the highest weekly wage at $2,217, followed by Wholesale Trade at $2,321. Estimated Number of Name Industry/Product/Service Employees Fairview Southdale Hospital Hospital/General Medical & Surgical 1,624 BI Worldwide Marketing Consulting Services 1,000 Regis Corporation Beauty Salons/Marketing Programs 900 Twin Cities Orthopedics Physicians & Surgeons 401 Edina Realty Real Estate 400 Dow Film Tec Water Purification Equipment 375 SpartanNash Organic Foods & Services 350 Western National Insurance Insurance 320 City of Edina Government Services 300 International Dairy Queen Restaurant Management 300 Total 5,970 TABLE E-9 2019 Sources: City of Edina; ReferenceUSA; Maxfield Research and Consulting LLC CITY OF EDINA MAJOR EMPLOYERS EMPLOYMENT MAXFIELD RESEARCH AND CONSULTING, LLC 53 • Employers that offer higher paying jobs did not express significant challenges with finding qualified workers, although the tight labor market is having an effect across the Board with generally fewer applicants overall from which to choose. • Employers hiring for lower paying jobs such as retail and service workers and lower paying health care positions expressed significant challenges to attracting almost any workers, re- gardless of commute times or • Health aides and Certified Nursing Assistants continue to be in short supply and turnover in the senior housing industry continues to increase. Labor shortages for senior housing with services is the number one challenge for senior housing operators. HOUSING CHARACTERISTICS MAXFIELD RESEARCH AND CONSULTING, LLC 54 Introduction The variety and condition of the housing stock in a community provides the basis for an attrac- tive living environment. Housing functions as a building block for neighborhoods and goods and services. We examined the characteristics of the housing supply in Edina by reviewing data on the age of the existing housing stock; examining the number of permits issued for residential units since 2010; reviewing housing data from the American Community Survey (2013-2017, five-year average estimates) with adjustments made to 2019 to reflect the most recent house- hold and tenure estimates for Edina and the Market Area. Residential Construction Trends 2010 through 2019 Maxfield Research obtained data from Edina on the number of building permits issued for new housing units in the City from 2010 through 2019. Also included are area cities from 2010 through September 2019. Table HC-1 displays units from permits issued for Edina by product type. Table HC-2 compares single-family and multifamily permits issued in Edina and PMA cit- ies. The following are key points about residential development since 2010. • Per the City of Edina, 2,646 housing units were permitted from 2010 through 2019. This is an average of 294 new housing units annually during the period. From January through De- cember 2019, 118 new construction permits were issued, substantially lower than the previ- ous few years. Year Single-Family Duplex, Triplex, and Fourplex Units Multifamily 5+ Units 2010 37 0 76 113 2011 57 0 0 57 2012 101 0 0 101 2013 111 2 232 345 2014 120 4 109 233 2015 111 10 472 593 2016 106 2 95 203 2017 91 2 431 524 2018 71 5 283 359 2019 67 6 45 118 Total 872 31 1,743 2,646 Sources: City of Edina; Maxfield Research and Consulting LLC TABLE HC-1 RESIDENTIAL CONSTRUCTION BUILDING PERMITS ISSUED CITY OF EDINA 2010 through 2019 Units Permitted Total Units Permitted per Year HOUSING CHARACTERISTICS MAXFIELD RESEARCH AND CONSULTING, LLC 55 • Since 2010, Edina permitted 872 single-family residential units with an average of 101 units per year from 2010 through 2018. In 2019, only 67 new single-family units were permitted. • Between 2010 and 2019, Edina issued permits for 31 duplex, triplex, and fourplex units and 1,743 multifamily units. 37 57 101 111 120 111 106 91 71 6776 0 0 234 113 482 97 433 288 51 0 100 200 300 400 500 600 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Units Year New Construction Residential Units: 2010 through 2019 Single-family Multifamily Year SF MF Total SF MF Total SF MF Total SF MF Total SF MF Total 2010 37 76 113 3 0 3 34 24 58 40 1,010 1,050 21 151 172 2011 57 0 57 21 624 645 32 0 32 49 617 666 41 0 41 2012 101 0 101 27 16 43 54 0 54 78 3,227 3,305 42 70 112 2013 111 234 345 21 260 281 80 191 271 144 3,176 3,320 60 1 61 2014 120 113 233 12 82 94 61 0 61 128 1,841 1,969 53 100 153 2015 111 482 593 17 395 412 71 2 73 117 1,421 1,538 40 521 561 2016 106 97 203 15 181 196 49 0 49 125 2,470 2,595 42 158 200 2017 91 433 524 4 37 41 59 0 59 132 2,143 2,275 40 474 514 2018 71 288 359 6 2 8 49 476 525 141 3,666 3,807 62 181 243 2019 1 67 51 118 4 444 448 7 0 7 16 4 20 Total 872 1,774 2,646 130 2,041 2,171 496 693 1,189 954 19,571 20,525 417 1,660 2,077 % of Total 33.0%67.0%100.0%6.0%94.0%100.0%41.7%58.3%100.0%4.6%95.4%100.0%20.1%79.9%100.0% 1 Edina data is through December 2019. All other geographies are through September 2019. Sources: Each PMA City; Metropolitan Council; Maxfield Research and Consulting LLC na Minnetonka Units TABLE HC-2 RESIDENTIAL CONSTRUCTION BUILDING PERMITS ISSUED EDINA & PMA CITIES 2010 to 20191 Edina Units Bloomington Units Eden Prairie Units Minneapolis Units HOUSING CHARACTERISTICS MAXFIELD RESEARCH AND CONSULTING, LLC 56 • The higher number of multifamily units permitted reflects the increase in demand for gen- eral occupancy rental housing and senior housing since the recession. Most new multifam- ily rentals, however, are priced at the top end of the market at per square foot rents of $2.10 per square foot or higher. Older rental properties have been increasing rents but are more affordable to a larger group of households than are the newest market rate proper- ties. Housing Replacements Maxfield Research accessed housing tear down data from Edina for 2010 through 2018. Table HC-3 displays annual data for number of rebuild permits issued, average home values before and after tear down, the total increase in estimated market value, and the total increase in tax capacity. • Between 2008 and 2018, 821 rebuild permits were issued. This is an annual average of 75 permits. • Although there has been a decrease in the number of new construction and rebuild permits issued, interest rates also recently decreased. We caution against considering that a slow down in new construction or rebuild permits suggests a longer-term reduction in market ac- tivity. There is usually some slow-down after a flurry of activity, which occurred post-reces- sion in the middle of the decade. Also, as Baby Boomers age and as there are fewer house- holds overall in the middle age group, there may be a general slowing in this type of activity and the Echo Boom generation has not yet reached their peak move-up buying period. • The average annual value of homes ultimately torn down between 2008 and 2018 was $421,420. After being torn down and rebuilt, homes have averaged $1,165,786, an increase of 177% ($744,366). • In the 2019, Edina Quality of Life survey, 35% of respondents stated the most serious issue facing Edina is housing (i.e. teardowns, overdevelopment, affordability and other housing challenges). Most respondents listed the number of housing options in Edina as fair and the availability of affordable housing as fair to poor. HOUSING CHARACTERISTICS MAXFIELD RESEARCH AND CONSULTING, LLC 57 Year 2018*68 $412,444 $1,166,588 ---- 2017 88 $486,949 $1,336,778 $61,187,700 642,470 2016 91 $407,342 $1,257,996 $62,948,400 660,958 2015 109 $450,887 $1,195,284 $66,995,800 703,456 2014 115 $369,000 $1,070,000 $82,108,100 862,135 2013 104 $347,000 $1,063,000 $73,723,500 774,097 2012 99 $403,000 $1,147,000 $73,720,700 774,067 2011 57 $393,000 $1,133,000 $42,171,600 442,802 2010 34 $408,000 $992,000 $19,869,200 208,627 2009 21 $446,000 $1,130,000 $14,370,100 150,886 2008 35 $512,000 $1,332,000 $28,699,500 301,345 Total/Average 821 $421,420 $1,165,786 $52,579,460 552,084 Note: Tax Capacity is the amount of Estimated Market Value which is multiplied by the Tax Rate for property taxes. TABLE HC-3 HOUSING TEAR DOWN DATA CITY OF EDINA 2008-2018* *:16 complete as of 1/2/2019. Sources: City of Edina, Maxfield Research & Consulting LLC. Rebuild Permits Average Value Before Tear Down Average Value After Tear Down Total Increase in EMV** Total Increase in Tax Capacity **: EMV is Estimated Market Value. 35 21 34 57 99 104 115 109 91 88 68 0 10 20 30 40 50 60 70 80 90 100 110 120 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of PermitsRebuild Permits: 2008 through 2018 HOUSING CHARACTERISTICS MAXFIELD RESEARCH AND CONSULTING, LLC 58 American Community Survey The American Community Survey (“ACS”) is an ongoing statistical survey administered by the U.S. Census Bureau that is sent to approximately 3 million addresses annually. The survey gath- ers data previously contained only in the long form of the Decennial Census. As a result, the survey is ongoing and provides a more “up-to-date” portrait of demographic, economic, social, and household characteristics every year, not just every ten years. The most recent ACS high- lights data collected between 2014 and 2018. Tables HC-4 to HC-7 show key data for the Edina with adjustments calculated by Maxfield Research to reflect 2019 housing characteristics. Age of Housing Stock The following graph shows the age distribution of the housing stock in 2019 based on data from the U.S. Census Bureau American Community Survey (5-Year for 2018) and building permit data provided by Edina for new residential units. Table HC-4 includes the number of housing units built prior to 1940 and during each decade since. • As of 2019, Edina is estimated to have 21,716 housing units, of which 72% are owner-occu- pied and 28% are renter-occupied. In Hennepin County, an estimated 61% are owner-oc- cupied while in the Twin Cities Metro Area, 68% of the housing stock is owner-occupied. $512,000 $446,000 $408,000 $393,000 $403,000 $347,000 $369,000 $450,887 $407,342 $486,949 $412,444 $1,332,000 $1,130,000 $992,000 $1,133,000 $1,147,000 $1,063,000 $1,070,000 $1,195,284 $1,257,996 $1,336,778 $1,166,588 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Housing Value ($)Average Housing Values Before and After Tear Down: 2008 through 2018 Average Value Before Average Value After HOUSING CHARACTERISTICS MAXFIELD RESEARCH AND CONSULTING, LLC 59 • The median year built of homes in Edina is 1967, while in Hennepin County, it is 1970 and in the Twin Cities Metro it is 1983. The older housing stock reflects Edina’s status as an in- ner ring suburb that is largely built out. Due however, to the desirability of the Edina mar- ket, older homes are being purchased, torn down and rebuilt with new homes. The largest proportion of homes in Edina (59%) were built in the 1950’s, 1960’s and 1970’s. The great- est proportion of homes in Edina was constructed in the 1950’s (20.3%). By comparison, the highest proportion of homes in Hennepin County was built prior to 1940 (17.6%). • Compared to Hennepin County and the Twin Cities Metro Area, 9.6% of Edina’s housing stock was built since 2000 compared to 17.7% of Hennepin County’s and 20.7% of the Twin Cities Metro Area. • Based on data provided by Edina, 872 single-family, 31 duplex, tri-plex and four-plex units and 1,743 multifamily units have been permitted since 2010. HOUSING CHARACTERISTICS MAXFIELD RESEARCH AND CONSULTING, LLC 60 Total Med. Yr. Units Built No.Pct.No.Pct.No.Pct.No.Pct.No.Pct.No.Pct.No.Pct.No.Pct.No.Pct. CITY OF EDINA Owner-Occupied 15,635 1964 1,467 9.4 1,165 7.5 3,897 24.9 3,090 19.8 2,193 14.0 1,846 11.8 644 4.1 914 5.8 419 2.7 Renter-Occupied 6,081 1974 229 3.8 267 4.4 522 8.6 1,206 19.8 1,807 29.7 1,015 16.7 282 4.6 335 5.5 418 6.9 Total 21,716 1967 1,696 7.8 1,432 6.6 4,419 20.3 4,296 19.8 4,000 18.4 2,861 13.2 926 4.3 1,249 5.8 837 3.9 HENNEPIN COUNTY Owner-Occupied 326,813 1968 59,001 18.1 20,265 6.2 51,265 15.7 30,881 9.4 39,705 12.1 44,367 13.6 30,367 9.3 29,568 9.0 21,394 6.5 Renter-Occupied 206,857 1972 34,677 16.8 7,764 3.8 16,396 7.9 25,926 12.5 37,045 17.9 25,837 12.5 15,594 7.5 16,666 8.1 26,952 13.0 Total 533,670 1970 93,678 17.6 28,029 5.3 67,661 12.7 56,807 10.6 76,750 14.4 70,204 13.2 45,961 8.6 46,234 8.7 48,346 9.1 METRO AREA Owner-Occupied 838,654 1982 109,784 13.1 34,293 4.1 95,014 11.3 76,341 9.1 105,609 12.6 122,752 14.6 123,065 14.7 110,041 13.1 61,755 7.4 Renter-Occupied 399,324 1982 59,443 14.9 12,507 3.1 29,656 7.4 47,500 11.9 70,909 17.8 55,066 13.8 39,542 9.9 41,119 10.3 43,582 10.9 Total 1,237,978 1983 169,227 13.7 46,800 3.8 124,670 10.1 123,841 10.0 176,518 14.3 177,818 14.4 162,607 13.1 151,160 12.2 105,337 8.5 Sources: U.S. Census Bureau - American Community Survey; Metropolitan Council; City of Edina; Maxfield Research & Consulting, LLC 2010 or later TABLE HC-4 AGE OF HOUSING STOCK CITY OF EDINA, HENNEPIN COUNTY AND TWIN CITIES METRO AREA 2019 1950s 1960s Year Unit Built 1970s 1980s<1940 1940s 2000s1990s HOUSING CHARACTERISTICS MAXFIELD RESEARCH AND CONSULTING, LLC 61 Housing Units by Structure and Occupancy or (Housing Stock by Structure Type) Table HC-4 shows the estimated housing stock in Edina by type of structure and tenure as of 2019. • The dominant housing type in Edina and the Market Area is the single-family detached home, representing an estimated 76.4% of all owner-occupied units and 10.9% of renter- occupied units as of 2019. • Nearly 60% of renter-occupied units in Edina are in structures with 50 or more units. • Most housing structures with three or more units in Edina (64%) are renter-occupied. Hennepin County has 85% and the Metro area has 86% with three or more units being renter-occupied. • In Edina, 53% of people living alone that own their housing reside in a single-family de- tached dwelling. An estimated 86% of two-person households that own their housing re- side in a single-family detached dwelling. Owner-Occupied Housing Units by Mortgage Status Table HC-5 shows mortgage status from the American Community Survey adjusted for 2019. The Average Value of Mortgage Status is determined from area median sales prices. Mortgage status provides information on the cost of homeownership when analyzed in conjunction with mortgage payment data. A mortgage refers to all forms of debt where the property is pledged Owner-Renter-Owner-Renter-Owner-Renter- Units in Structure Occupied Pct.Occupied Pct.Occupied Pct.Occupied Pct.Occupied Pct.Occupied Pct. 1, detached 11,845 76.4%647 10.9%263,650 84.6%25,825 13.8%676,478 83.2%54,554 14.5% 1, attached 948 6.1%416 7.0%31,550 10.1%14,532 7.7%96,524 11.9%40,565 10.8% 2 46 0.3%186 3.1%4,716 1.5%13,877 7.4%7,314 0.9%23,642 6.3% 3 to 4 59 0.4%74 1.2%2,712 0.9%10,055 5.4%5,622 0.7%19,828 5.3% 5 to 9 241 1.6%151 2.5%2,804 0.9%11,444 6.1%6,210 0.8%23,208 6.2% 10 to 19 243 1.6%360 6.0%2,225 0.7%25,081 13.4%3,743 0.5%46,647 12.4% 20 to 49 840 5.4%728 12.2%5,270 1.7%36,879 19.7%9,334 1.1%68,192 18.1% 50 or more 1,396 9.0%3,520 59.2%12,866 4.1%68,695 36.6%20,433 2.5%120,530 32.0% Mobile home 16 0.1%0 0.0%977 0.3%429 0.2%12,844 1.6%2,037 0.5% Boat, RV, van, etc.0 0.0%0 0.0%44 0.0%40 0.0%152 0.0%121 0.0% Total 15,635 100%6,081 100%326,813 100%206,857 100%838,654 100%399,324 100% Sources: U.S. Census Bureau - American Community Survey; Maxfield Research & Consulting, LLC TABLE HC-5 HOUSING UNITS BY STRUCTURE & TENURE EDINA, HENNEPIN COUNTY AND TWIN CITIES METRO 2019 EDINA HENNEPIN COUNTY METRO AREA HOUSING CHARACTERISTICS MAXFIELD RESEARCH AND CONSULTING, LLC 62 as security for repayment. A first mortgage has priority claim over any other mortgage or if it is the only mortgage. A second (and sometimes third) mortgage is called a “junior mortgage,” a home equity line of credit (HELOC) would also fall into this category. Finally, a housing unit without a mortgage is owned free and clear and is debt free. • An estimated 66.3% of Edina homeowners have a mortgage. An estimated 15.9% of home- owners with mortgages in Edina also have a second mortgage and/or home equity loan. These numbers are slightly lower compared to Hennepin County where 71.7% of homeown- ers have a mortgage. The median value of homes with a mortgage among Edina homeown- ers was $491,000. Owner-Occupied Housing Units by Value Table HC-6 presents data on housing values summarized in eight price ranges. Housing value refers to the estimated price point the property would sell at if it were for-sale. For single-fam- ily and townhome properties, value includes the land and the structure. For condominium units, value refers to only the unit. • Most of the owned housing stock in Edina is estimated to be valued at between $300,000 and $499,999 (32.7%). An estimated 21% is valued over $750,000 and 27% is valued under $300,000. Mortgage Status No.Pct.No.Pct.Pct.Pct. Housing units without a mortgage 5,274 33.7 92,506 28.3 232,186 27.7000 Housing units with a mortgage/debt 10,361 66.3 234,308 71.7 606,468 72.3 Second mortgage only 450 2.9 11,039 3.4 30,136 3.6 Home equity loan only 1,949 12.5 34,553 10.6 87,541 10.4 Both second mortgage and equity loan 84 0.5 1,450 0.4 4,288 0.5 No second mortgage or equity loan 7,878 50.4 187,266 57.3 484,503 57.8 Total 15,635 100.0 326,813 100.0 838,654 100.0 Average Value by Mortgage Status Housing units with a mortgage Housing units without a mortgage Sources: U.S. Census Bureau - American Community Survey; Maxfield Research & Consuilting, LLC $490,607 $286,072 $286,785 $391,540 $269,548 $262,024 TABLE HC-6 OWNER-OCCUPIED HOUSING UNITS BY MORTGAGE STATUS EDINA, HENNEPIN COUNTY AND TWIN CITIES METRO AREA 2019 EDINA HENNEPIN CO.METRO AREA HOUSING CHARACTERISTICS MAXFIELD RESEARCH AND CONSULTING, LLC 63 • The median sold price of owned homes in Edina is estimated at $465,000 from 2019 data compiled by the Greater Minneapolis Area Association of Realtors from recent home sales in the community. According to American Community Survey data, an estimated 56% of Edina homes are valued at $400,000 or higher. Home Value No.Pct.No.Pct.Pct.Pct. Less than $100,000 848 5.4 19,848 6.1 59,445 7.1 $100,000-$199,999 1,733 11.1 93,795 28.7 253,021 30.2 $200,000-$299,999 1,711 10.9 94,203 28.8 256,079 30.5 $300,000-$399,999 2,535 16.2 50,633 15.5 130,553 15.6 $400,000-$499,999 2,586 16.5 26,352 8.1 62,257 7.4 $500,000-$749,999 3,002 19.2 25,788 7.9 51,981 6.2 $750,000-$999,999 1,683 10.8 8,582 2.6 13,962 1.7 Greater than $1,000,000 1,537 9.8 7,612 2.3 11,356 1.4 Total 15,635 100.0 326,813 100.0 838,654 100.0 Median Home Value Sources: U.S. Census Bureau - American Community Survey; Maxfield Research & Consulting, LLC $465,000 $298,350 $284,500 TABLE HC-7 OWNER-OCCUPIED UNITS BY VALUE EDINA, HENNEPIN COUNTY AND TWIN CITIES METRO AREA 2019 EDINA HENNEPIN CO.METRO AREA 0 1,000 2,000 3,000 4,000 < $100K $100K-$99.9K $200K-$299.9K $300K-$399.9K $400K- $4999.9K $500K-$749.9K $750K-$999.9K >$1MUnits Home Value Owner-Occupied Units by Value City of Edina HOUSING CHARACTERISTICS MAXFIELD RESEARCH AND CONSULTING, LLC 64 Renter-Occupied Units by Asking Rent Table HC-7 presents information on the monthly housing costs for renters called asking rent. Asking rent is the monthly rent agreed to between tenant and landlord regardless of any utili- ties, furnishings, fees, or services that may be included. • The median monthly rent in Edina and Hennepin County was $1,586 and $1,318, respec- tively as identified by Marquette Advisors Apartment Trends report for the Twin Cities Metro Area, Hennepin County and Edina for the 2nd Quarter of 2019. Based on a 30% allo- cation of income to housing, a household in Edina would need an income of $63,440 to af- ford an average monthly rent of $1,586. • An estimated 23% of Edina renters have monthly rents of more than $1,500 with 44.8% of renters paying between $1,000 and $1,499 and 29.4% of renters paying less than $1,000. • In Hennepin County, most renters (30.1%) pay a monthly contract rent of between $1,000 and $1,499 while in Edina, the proportion is greater, at 44.8%. Based on the proportion of renters in each of the geographies, rents are higher in Edina than in Hennepin County and the Metro Area as a whole. Contract Rent No.Pct.No.Pct.Pct.Pct. No Cash Rent 162 2.7 4,523 2.2 9,986 2.5 Cash Rent 5,918 97.3 202,333 97.8 389,337 97.5 $0 to $499 348 5.7 23,000 11.1 42,921 10.7 $500-$750 390 6.4 31,819 15.4 63,819 16.0 $750-$999 1,052 17.3 57,537 27.8 117,016 29.3 $1,000-$1,499 2,726 44.8 62,253 30.1 119,408 29.9 $1,500-$2,000 919 15.1 19,267 9.3 32,289 8.1 $2,000+483 7.9 8,458 4.1 13,884 3.5 Total 6,081 100.0 206,857 100.0 399,324 100.0 2019 Average Rent Sources: U.S. Census Bureau - American Community Survey; Marquette Advisors; Maxfield Research & Consulting, LLC. $1,586 $1,318 $1,254 TABLE HC-8 RENTER-OCCUPIED UNITS BY CONTRACT RENT EDINA, HENNEPIN COUNTY AND TWIN CITIES METRO AREA 2019 EDINA HENNEPIN CO.METRO AREA FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 65 Introduction Maxfield Research and Consulting LLC examined the for-sale housing market in Edina by analyz- ing data on single-family and owned multifamily home sales and active listings, value distribu- tion of existing homes by price range, identifying new construction, locations for in-fill and/or redevelopment and pending for-sale developments. Owned multifamily includes twinhomes, townhomes, condominiums and general occupancy cooperatives (senior cooperatives are dis- cussed in the Senior Market section). Median Home Values by Census Tract The map on the following page depicts median home values by census tract. Geographic infor- mation System (GIS) data was provided through ESRI, a national demographics and GIS service provider. Below are key points from the map. • Edina median home values ranged from an estimated $200,000 to a little over $900,000 with an average median home value of $466,902 across all 14 census tracts. • Median home values were highest in the northwestern and far southwestern portions of the City. • Median home values were lowest in the southeastern portion of the City. FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 66 City of Edina 2019 Median Home Values by Census Tract FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 67 Home Resales in Edina and Surrounding Communities Table FS-1 presents summary data for resales of single-family and owned multifamily housing units for Edina and surrounding communities. The table shows the median sales prices and number of resales from 2010 through September 2019. The following are key points from Ta- ble FS-1. • From year-end 2010 through September 2019, Edina and the surrounding communities ex- perienced rapid home sale price appreciation. Home sale appreciation has been highest in the neighboring communities of Hopkins (69.8%) and Bloomington (54.5%). • The City’s median home resale price increased 32.9% between 2010 and September 2019. This is compared to the Twin Cities Metro Area increase of 62.5%. • The City’s median home resale price was lowest in 2011 when the median value declined to $339,900 due to the recession. Since 2011, the median resale price has increased each year. As of the end of September 2019, the median resale price was $465,000, an increase of 36.8% from 2011 ($339,900). By comparison, Twin Cities Metro resale prices between 2011 and 2019 increased 83.9%. • Edina’s 2019 median home resale value of ($465,000) is substantially higher than the neigh- boring communities of Eden Prairie ($350,000), Minnetonka ($345,000), St Louis Park ($300,000), Bloomington ($274,999), Hopkins ($255,000) and Southwest Minneapolis ($399,000). FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 68 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019*13'-15'15-17'17'-19' Median Resale Price Edina $349,900 $339,900 $344,900 $349,900 $379,000 $388,250 $425,000 $442,625 $440,500 $465,000 11.0%14.0%5.1% Southwest Mpls1 $275,000 $260,500 $275,000 $300,275 $308,875 $333,750 $343,000 $378,000 $385,000 $399,000 11.1%13.3%5.6% Bloomington $178,000 $157,000 $170,000 $190,000 $200,000 $217,000 $232,000 $250,000 $260,000 $274,999 14.2%15.2%10.0% Eden Prairie $262,000 $255,000 $254,950 $273,500 $292,950 $290,000 $300,000 $325,000 $334,000 $350,000 6.0%12.1%7.7% Minnetonka $265,000 $230,000 $249,900 $272,600 $266,800 $297,250 $303,950 $330,000 $340,000 $345,000 9.0%11.0%4.5% Hopkins $150,175 $122,250 $158,000 $180,000 $172,500 $213,500 $215,000 $217,450 $250,000 $255,000 18.6%1.9%17.3% St Louis Park $212,000 $181,500 $196,800 $217,000 $229,300 $237,500 $243,000 $262,950 $286,500 $300,000 9.4%10.7%14.1% Twin Cities MSA2 $168,600 $149,000 $165,900 $190,000 $204,000 $218,000 $230,000 $244,900 $260,000 $274,000 14.7%12.3%11.9% Sources: Greater Mpls Area Assoc of Realtors, Maxfield Research & Consulting, LLC 1:Southwest Minneapolis includes the following Minneapolis neighborhoods; Linden Hills, Fulton, East Harriet, Lynhurst, Armatage, Kenny, Windom, Tangeltown, and King Field. YEAR *2019 Data is for Jan 1 through September 30, 2019. 2: Twin Cities MSA includes the following counties; Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. TABLE FS-1 MEDIAN RESALE PRICE BY COMMUNITY EDINA & NEARBY COMMUNITIES 2010 through 2019* PCT. CHANGE FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 69 Overview of For-Sale Housing Market Conditions Table FS-2 presents combined home resale data on single-family and owned multifamily hous- ing in Edina from 2010 through September 30, 2019. The data was obtained from the Greater Minneapolis Area Association of Realtors and shows annual number of sales, median and aver- age prices, average days on market, cumulative days on market and percent of sales that are lender-mediated (i.e. short-sale or foreclosure). Table FS-3 breaks down resale activity from Table FS-2 into single-family and multifamily re- sales. The following are key points observed from the data. • The median resale price in Edina, excluding 2019, was highest in 2017 at $442,625. How- ever, through September 30th, the median resale price was higher at $465,000. For compar- ison, the Twin Cities Metro median resales price, excluding 2019, was highest in 2018 at $260,000. However, through September 30th, the median resale price was higher at 274,999. • Between 2010 and September 2019, the City’s median resale price increased from $349,900 to $465,000, a gain of 32.9%. Between 2010 and 2012 however, the median resale price declined to $344,900 (-1.4%). Since 2012, home resale prices have increased each year, ris- ing to $465,000 (34.8%). • The number of home resales (single-family and owned multifamily combined) has averaged 811 sales annually between 2010 and 2018. The fewest number of resales occurred in 2010 with 617 resales while 2017 reached a peak of 952 resales. $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 Edina Southwest Mpls Bloomington Eden Prairie Minnetonka Hopkins St Louis Park Twin Cities MSAMedian PriceMedian Resale Price by Community 2015 through 2019 (Sep) 2015 2016 2017 2018 2019 FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 70 • The number of lender-mediated properties accounted for 11.1% of all home transactions between 2009 and 2013; peaking in 2011 at 15.1%. Since 2013, the number has decreased substantially and was 1.0% in 2018 and 0.6% as of September 30, 2019. • Days on market for new construction homes in Edina increased from a low of 90 days in late 2018 to a high of 140 days as of early 2019. This compares to a steady median of about 45 days for the Twin Cities Metro Area. The much higher price of new construction homes in Edina results in longer market times for absorption. Absorption has also increased for homes priced at $1 million or higher. 6176478577468168988899528767130 100 200 300 400 500 600 700 800 900 1000 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 ResalesSales PriceEdina Housing Resale -2010 Through 2019 (Sept) Resales Median Sold Price Average Sold Price FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 71 No.Avg. Sales Avg. %Med. Sales Median %% Lender Year Sold Price Change Price Change Avg.Median Avg.Median Mediated3 2010 617 $431,342 -$349,900 -83.2 58.0 163.2 105.0 11.5% 2011 647 $431,060 -0.1%$339,900 -2.9%83.4 56.0 150.7 102.0 15.1% 2012 857 $427,573 -0.8%$344,900 1.5%80.2 51.0 141.5 85.0 10.4% 2013 746 $440,000 2.9%$349,900 1.4%60.6 31.0 91.3 42.0 7.4% 2014 816 $462,001 5.0%$379,000 8.3%50.8 32.0 77.4 39.0 4.7% 2015 898 $466,965 1.1%$388,250 2.4%55.5 36.0 92.2 55.0 3.6% 2016 889 $495,462 6.1%$425,000 9.5%53.5 32.0 86.0 44.0 1.5% 2017 952 $524,242 5.8%$442,625 4.1%51.3 28.0 89.5 36.0 1.9% 2018 876 $521,138 -0.6%$440,500 -0.5%43.4 24.0 71.5 31.0 1.0% 2019 713 $553,333 6.2%$465,000 5.6%21.0 45.4 73.1 27.0 0.6% Total 10'-19'8,011 $475,312 2.8%$392,498 3.3%58 39 104 57 5.8% Change 16%28%33%-75%-22%-55%-74% Average 801 475,312 2.8%392,498 3.3%58 39 104 57 5.8% TABLE FS-2 HOME RESALES EDINA MN 2010 THROUGH 20191 Summary 10' through 19' 1 2019 Data is from Jan 1, 2019 through Sept 30, 2019. 2 Cumulative days equals the number of days on market over the course of the past year (i.e. covers number of days if the property was relisted) 3 Lender Mediated Properties include foreclosures and short sales. Sources: Greater Mpls Area Association of Realtors & Maxfield Research & Consulting, LLC. Days on Market Cumul. DOM2 FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 72 • Single-family homes accounted for 64.8% of all resales between 2010 and 2019 and aver- aged 519 resales per year. Owned multifamily resales were highest in 2015 (342 resales) when they accounted for 38.1% of total sales. Through September 2019, 36.9% of resales were for multifamily units. Median Average Number Sales %Sales % Year of Sales Price Chg.Price Chg. 2010 428 $424,500 -$506,620 - 2011 451 $414,900 -2.3%$510,160 0.7% 2012 558 $430,000 3.6%$536,366 5.1% 2013 480 $443,215 3.1%$554,714 3.4% 2014 520 $450,000 1.5%$578,319 4.3% 2015 556 $469,950 4.4%$583,427 0.9% 2016 583 $519,900 10.6%$630,627 8.1% 2017 633 $545,000 4.8%$662,043 5.0% 2018 535 $573,000 5.1%$671,371 1.4% 2019 450 $595,000 3.8%$712,452 6.1% Pct. Change 10' - 19'5.1%40.2%40.6% 2010 189 $135,000 -$178,427 - 2011 196 $119,900 -11.2%$166,302 -6.8% 2012 299 $120,000 0.1%$165,789 -0.3% 2013 266 $146,225 21.9%$192,068 15.9% 2014 296 $216,922 48.3%$149,250 -22.3% 2015 342 $162,250 -25.2%$237,256 59.0% 2016 306 $182,475 12.5%$237,940 0.3% 2017 319 $185,000 1.4%$257,276 8.1% 2018 341 $186,000 0.5%$249,081 -3.2% 2019*263 $205,000 10.2%$281,075 12.8% Pct. Change 10' - 19'39.2%51.9%57.5% Sources: Greater Mpls Area Association of Realtors & Maxfield Research & Consulting, LLC. TABLE FS-3 Single-Family Multifamily* * Multifamily includes twinhomes, townhomes, condominiums, and cooperatives SINGLE-FAMILY AND OWNED MULTIFAMILY RESIDENTIAL RESALES EDINA MN 2010 through 2019 Note: 2019 data is for January 1 through September 30. FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 73 Single Family and Multifamily Resales by Price Point Table FS-4 shows the number of single family and multifamily resales in 2019 through October 6, 2019 by housing unit type and price distribution among 21 price ranges in Edina. Single-Family • Homes priced between $400,000 and $499,999, $500,000 and $599,999, and $600,000 and $699,999 comprised the three largest percentages of new single-family home resales be- tween January 1 and September 30, 2019. All three categories constituted 48.7% of single- family resales. The $300,000 to $399,000 category also comprised a sizable percentage of single-family resales (11.3%). • The minimum and maximum single-family resale price points were $222,000 and $3,075,000 respectively. Median and average price points were $595,000 and $712,452 re- spectively. Multifamily • Multifamily resales between $100,000 and $199,999 made up almost 50% (47.9%) of re- sales between January 1 and September 30, 2019. Other price points with high numbers of resales include between $200,000 and $299,999 (17.1%) and between $300,000 and $399,999 (15.2%). $424,500 $414,900 $430,000 $443,215 $450,000 $469,950 $519,900 $545,000 $573,000 $595,000 $135,000 $119,900 $120,000 $146,225 $216,922 $162,250 $182,475 $185,000 $186,000 $205,000 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Sales PriceMedian Resale Values In Edina: 2010 through 2019 (Sept) Single-Family Multifamily FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 74 • The minimum and maximum multifamily resale price points were $102,000 and $1,775,000 respectively. Median and average resale price points were $205,000 and $281,075 respec- tively. Price Range No.Pct.No.Pct. < $99,999 0 0.0%1 0.4% $100,000 to $199,999 1 0.2%127 47.9% $200,000 to $299,999 19 4.1%45 17.0% $300,000 to $399,999 54 11.8%41 15.5% $400,000 to $499,999 88 19.2%23 8.7% $500,000 to $599,999 70 15.3%16 6.0% $600,000 to $699,999 62 13.5%4 1.5% $700,000 to $799,999 37 8.1%2 0.8% $800,000 to $899,999 24 5.2%1 0.4% $900,000 to $999,999 17 3.7%0 0.0% $1,000,000 to 1,100,000 11 2.4%0 0.0% $1,100,000 to $1,199,999 21 4.6%0 0.0% $1,200,000 to $1,299,999 15 3.3%1 0.4% $1,300,000 to $1,399,999 10 2.2%1 0.4% $1,400,000 to $1,499,999 2 0.4%1 0.4% $1,500,000 to $1,599,999 5 1.1%0 0.0% $1,600,000 to $1,699,999 6 1.3%1 0.4% $1,700,000 to $1,799,999 5 1.1%0 0.0% $1,800,000 to $1,899,999 2 0.4%1 0.4% $1,900,000 to $1,999,999 4 0.9%0 0.0% $2,000,000 and Over 5 1.1%0 0.0% Total 458 100%265 100% Minimum Maximum Median Average Sources: Greater Mpls Area Association of Realtors Maxfield Research & Consulting, LLC 1 Includes townhomes, detached townhomes, twinhomes, condominiums, and cooperatives $599,450 $210,000 $725,169 $286,859 $199,900 $99,900 $3,250,000 $1,890,000 TABLE FS-4 RESALES BY PRICE POINT EDINA MN January 1 through September 2019 Single-Family Multifamily1 FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 75 Current Supply of Homes on the Market To more closely examine the current market for owned housing in Edina, we inventoried the number of homes on the market (listed for sale). Tables FS-5 and FS-6 shows homes listed for sale in Edina. The data was provided by the Greater Minneapolis Area Association of Realtors and is based on active listings in from January 1 to October 6, 2019. Listings through the re- gional Multiple Listing Service (MLS) generally account for more than 90% of all residential list- ings in a given area. Table FS-5 shows the number of new and previously owned listings by property type (i.e. single- family and owned multifamily). The following points are key findings from the review of active single-family and owned multifamily listings in the City. Price Range No.Pct.No.Pct.No.Pct.No.Pct. < $99,999 0 0.0%0 0.0%0 0.0%0 0.0% $100,000 to $199,999 0 0.0%0 0.0%0 0.0%5 38.5% $200,000 to $299,999 0 0.0%1 0.5%0 0.0%2 15.4% $300,000 to $399,999 0 0.0%13 6.8%0 0.0%2 15.4% $400,000 to $499,999 0 0.0%29 15.2%0 0.0%2 15.4% $500,000 to $599,999 0 0.0%21 11.0%1 25.0%1 7.7% $600,000 to $699,999 0 0.0%15 7.9%1 25.0%0 0.0% $700,000 to $799,999 0 0.0%20 10.5%1 25.0%0 0.0% $800,000 to $899,999 3 6.0%15 7.9%0 0.0%0 0.0% $900,000 to $999,999 3 6.0%16 8.4%0 0.0%0 0.0% $1,000,000 to $1,100,000 1 2.0%8 4.2%1 25.0%0 0.0% $1,100,000 to $1,199,999 2 4.0%9 4.7%0 0.0%0 0.0% $1,200,000 to $1,299,999 9 18.0%4 2.1%0 0.0%0 0.0% $1,300,000 to $1,399,999 4 8.0%4 2.1%0 0.0%0 0.0% $1,400,000 to $1,499,999 9 18.0%6 3.1%0 0.0%0 0.0% $1,500,000 to $1,599,999 5 10.0%1 0.5%0 0.0%1 7.7% $1,600,000 to $1,699,999 2 4.0%7 3.7%0 0.0%0 0.0% $1,700,000 to $1,799,999 2 4.0%1 0.5%0 0.0%0 0.0% $1,800,000 to $1,899,999 1 2.0%1 0.5%0 0.0%0 0.0% $1,900,000 to $1,999,999 3 6.0%7 3.7%0 0.0%0 0.0% $2,000,000 and Over 6 12.0%13 6.8%0 0.0%0 0.0% 50 100%191 100%4 100%13 100% Minimum Maximum Median Average Note: NA: Not Available $114,900 $1,575,000 Edina Total 1: Includes completed new construction, under construction/spec homes, and to be built/floor plan. $298,500 $380,377 $799,000 $984,017 New Single-Family1 Previously Owned Single Family $3,995,000 2 Includes townhomes (detached and attached), twinhomes and condominiums Previously Owned Multifamily2 TABLE FS-5 HOMES CURRENTLY LISTED FOR-SALE EDINA, MN JANUARY 1 TO OCTOBER 6, 2019 $3,995,000 $1,000,000 Sources: Greater Mpls Area Association of Realtors & Maxfield Research & Consulting, LLC. $1,600,209 $725,000 $1,462,450 New Multifamily1,2 $700,000 $275,000$875,000 $500,000 FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 76 • As of October 6, 2019, there were 258 homes listed for sale in Edina. • The median list price in Edina was $1,462,450 for new single-family homes and $799,000 for previously owned single-family homes. New owned multifamily homes had a median list price of $700,000 and previously owned multifamily homes had a median list price of $202,450. • The average new single and owned multifamily median list prices are $1,462,450 and $700,000 while the previously owned single and multifamily median list prices are $799,000 and $298,500. Housing prices of $1,462,450, $700,000, $799,000, and $202,450 would re- quire a household to earn incomes of about $365,613, $175,000, $199,750, and $74,625 re- spectively in order to afford to make monthly housing payments of about $6,982, $3,342, $3,815, and $967 respectively (assuming a 10% down payment, 4.0% 30-year fixed mort- gage, property taxes, insurance, and PMI). A household with more equity (in an existing home and/or savings) could put more than 10% down and afford a higher priced home. New Construction and Active Listings by Price Point Table FS-7 shows the number of new and active listings in 2019 through October 6, 2019 by housing property while table FS-8 is a more detailed analysis of active and previously owned single-family listings New Single Family Previously Owned Single Family New Multifamily Previously Owned Multifamily Average Median List Price:$1,462,450 $799,000 $700,000 $298,500 Incomes Needed to Afford Median List Price: $365,613 $175,000 $199,750 $74,625 Required Monthly Payments*:$6,982 $3,342 $3,815 $967 *: Assumes a 10% down payment, 4.0% 30-year fixed mortgage, property taxes, insurance, and PMI. Source: Maxfield Research & Consulting, LLC. HOUSEHOLD INCOME NEEDED TO AFFORD NEW/PREVIOUSLY OWNED SINGLE & MULTIFAMILY MEDIAN PROPERTY PRICES TABLE FS-6 JANUARY 1 TO OCTOBER 6, 2019 EDINA, MN Housing Type: FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 77 New Construction • New single-family homes priced between $1,200,000 and $1,299,999 and $1,400,000 and $1,499,999 comprised the two largest percentages of new home listings. Both categories constitute 18.0% respectively, of all new home listings for a total of 36% new listings. • There were four new owned multifamily listings between January 1 and October 6, 2019. One listing was priced between $500,000 and $599,999; a second was priced between $600,000 and $699,999; a third was priced between $700,000 and $799,999 and a fourth was priced between $1,000,000 and $1,100,000. Three of the properties were condos at Hawthorne Place located at 4901 Hawthorne Court. The condos ranged in price from $500,000 for a 1,617 square foot two bedroom and three bath unit to $750,000 for a 2,493 square foot three-bedroom and three-bath unit. The fourth property was a four-bedroom and four-bath detached townhome also a part of the Hawthorne Place development. The detached townhome is 3,894 square feet, priced at $1,000,000, and located at 4900 Haw- thorne Court. Active Listings • Between January 1 and October 6, 2019, single-family listings priced between $400,000 and $499,999 comprised the largest percentage of listings (15.2%). This was followed by homes priced between $500,000 and $599,999 (11.0%) and those priced between $700,000 and $799,999 (10.5%). • Owned multifamily home listings between $100,000 and $199,999 (48.1%) and $200,000 and $299,999 (25.9%) comprised 73% of all multifamily listings between January 1 and Oc- tober 6, 2019. • Single-family homes accounted for 93.4% of all active listings. Most of the owned multifam- ily listings were condominiums as only four townhomes/twinhomes were actively market- ing. • One-story level home styles comprise 94.0% of new active single-family listings in the City while two-story homes comprise 6.0% of new active single-family listings. By comparison, most previously owned single-family homes are two stories (53.7%), followed by one story homes (32.1%). One-story homes can be especially appealing to older households who de- sire less home upkeep and want to age in place without mobility concerns. FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 78 Property Type Listings Pct. New Single-family Homes1 50 19.4% Previously Owned Single Family Homes 191 74.0% New Townhomes/Twinhomes 1 1 0.4% Previously Owned Townhomes/Twinhomes 2 0.8% New Condominium/Cooperatives 1 3 1.2% Previously Owned Condominium/Cooperatives 11 4.3% Total 258 100.0% ACTIVE LISTINGS BY HOUSING TYPE TABLE FS-7 Source: Maxfield Research & Consulting, LLC. JANUARY 1 TO OCTOBER 6, 2019 EDINA, MN 1: Includes completed new construction, under construction/spec homes, and to be built/floor plan. FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 79 Avg. List Avg. Size Avg. List Price Avg.Avg.Avg. Age Property Type Listings Pct.Price (Sq. Ft.)Per Sq. Ft.Bedrooms Bathrooms of Home One story 47 94.0%$1,461,666 3,889 $376 4.0 4.0 2019 1.5-story 0 0.0%NA NA NA NA NA NA 2-story 3 6.0%$1,609,052 $4,649 $346 5.0 5.0 2016 3 Level Split 0 0.0%NA NA NA NA NA NA 4 or More Level Split 0 0.0%NA NA NA NA NA NA Total/Average 50 100.0%$1,535,359 4,269 $361 4.5 4.5 2018 One story 61 32.1%$728,574 3,176 $229 4.0 3.0 1964 1.5-story 15 7.9%$621,160 2,606 $238 4.0 3.0 1942 2-story 102 53.7%$1,221,964 4,663 $262 5.0 5.0 1989 3 Level Split 1 0.5%$453,900 2,439 $186 4.0 4.0 1960 4 or More Level Split 11 5.8%$573,355 2,926 $196 4.0 3.0 1958 Total/Average 190 100.0%$719,791 3,162 $222 4.2 3.6 1963 NA: Not Applicable Sources: Greater Mpls Area Association of Realtors & Maxfield Research & Consulting, LLC. Previously Owned Single-Family Homes 1: Includes completed new construction, under construction/spec homes, and to be built/floor plan. TABLE FS-8 SINGLE-FAMILY ACTIVE LISTINGS BY HOUSING TYPE JANUARY 1 TO OCTOBER 6, 2019 New Single-Family Homes EDINA, MN FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 80 $1,461,666 $1,609,052$376 $346 $340 $345 $350 $355 $360 $365 $370 $375 $380 $1,350,000 $1,400,000 $1,450,000 $1,500,000 $1,550,000 $1,600,000 $1,650,000 One story 2 story Price Per Square FootAvg. List PriceHousing Type New Single-Family Homes: Average List Price/Price PSF Edina Jan 1, 2019 to Oct 6, 2019 FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 81 1 19 54 88 70 62 37 24 17 11 21 15 10 2 5 6 5 2 4 5 127 45 41 23 16 4 2 1 1 1 1 1 1 0 20 40 60 80 100 120 140 # of ListingsList Price Edina Single-Family & Multifamily Listings Jan through Sep 2019 Single-Family Multifamily FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 82 For-Sale Multifamily Homes Table FS-9 identifies active listings of for-sale multifamily housing properties in Edina through October 11, 2019. The table presents data on homes and their addresses, number of units, type of housing, year built or converted and resale pricing. Key findings from the tables follow. • An estimated 52% of Edina’s owned multifamily housing stock was constructed in the 1960s and 1970s. Several of the condominium properties were converted to ownership from ex- isting apartments. Thirty-six percent of Edina’s owned multifamily housing units were con- structed in the 1980s. Only 12% of this stock was constructed after the 1980s. • Older condominiums and townhomes (1960s), priced between $139,900 and $172,900, are relatively affordable when compared to for sale condominiums and townhouses built from 1970 to the present. Many of these older properties are affordable to first-time home buy- ers and to households with moderate incomes. • The value of owned multifamily units built in the 1960s averaged $159,136, $312,550 in the 1970s, $342,833 in the 1980s, $899,500 in the 1990s and $715,500 in the 2000s. • An analysis of recent sales for condominiums/townhomes in Edina revealed that including association fees, 68% of the sales in 2018/2019 (330 of 485 resales) were affordable to households earning 80% of AMI or less (pricing of $216,000 or less). FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 83 General Product Year Number of Units Total Building Project Name Address Type Built For Sale Units*Design Low High Fountain Woods I 6650 - 6710 Vernon Ave S 55436 Condominium 1972 4 314 4+ Levels $119,000 $159,000 Fountain Woods II 6730 Vernon Ave S 55436 Condominium 1972 1 215 4+ Levels $158,000 $158,000 The Colony at Edina 6328 Barrie Rd 55435 Condominium 1964 1 259 1 Level $128,000 $128,000 Parklawn East 4351 Parklawn Ave 55435 Condominium 1965 1 59 4+ Levels $139,900 $139,900 Brookside Condominiums 4350 - 4380 Brookside Ct 55436 Condominium 1965 8 229 3 Levels $147,000 $259,900 York of Edina Condomiums 6450 York Ave S 55435 Condominium 1966 1 80 4+ Levels $149,900 $149,900 Southdale Gardens 6301 - 6315 York Ave S 55435 Condominium 1964 1 48 3 Levels $154,900 $164,900 York Plaza 7220 York Ave S 55435 Condominium 1980 3 225 4+ Levels $159,900 $219,900 Windwood Edina 7500 - 7520 Cahill Rd 55439 Condominium 1972 3 225 3 Levels $159,900 $179,900 Parkwood View 5725 Blake Rd S 55436 Condominium 1966 1 43 3 Levels $159,900 $169,000 Parkwood Manor 6005 Eden Prairie Rd 55436 Condominium 1963 1 46 3 Levels $172,900 $172,900 Village Homes of Edinborough 7606 - 7618 York Ave S & 7609 Edinborough Way 55435 Condominium 1986 3 380 3 Levels $190,000 $216,000 Village Homes at Centennial Lakes 7440 - 7540 Edinborough Way 55435 Condominium 1989 4 250 3 Levels $214,900 $349,900 Lewis Ridge Condominiums 7250 Lewis Ridge Pkwy 55439 Condominium 1984 1 47 3 Levels $255,000 $255,000 Le Chataignier 7200 Cahill Rd 55439 Condominium 1983 1 80 3 Levels $265,000 $265,000 Edina West 6075 - 6115 Lincoln Dr 55436 Condominium 1975 1 384 3 Levels $273,500 $273,500 Dewey Hill East 5501 Dewey Hill Rd 55439 Condominium 1980 1 58 3 Levels $275,000 $275,000 Dewey Hill West 5601 Dewey Hill Rd 55439 Condominium 1980 1 58 3 Levels $392,500 $409,900 Killarney Shores 5902 View LN 55436 Twinhome 1977 1 67 Bi-Level $384,900 $384,900 Grandview Square 5225 - 5275 Grandview Square 55436 Condominium 2001 2 70 4+ Levels $449,900 $599,000 Hills of Braemar 7659 Woodview Ct 55439 Townhome 1980 1 23 Side by Side $575,000 $575,000 The Habitat 6101 Habitat Ct S 55436 Twinhome 1980 1 28 Twin Home $639,000 $639,000 The Coventry at Centennial Lakes 406 Coventry LN & 800 Coventry Pl 55435 Townhome 1996 2 96 Side by Side $699,000 $1,100,000 Edina Galleria Residences 3209 Galleria 55435 Condominium 2008 1 82 4+ Levels $749,000 $899,000 Whitehall of Edina 6105 Eden Prairie Rd Condominium 1975 1 21 3 Levels $750,000 $750,000 Source: Greater Mpls Area Assoc of Realtors & Maxfield Research & Consulting LLC. TABLE FS-9 ACTIVE FOR-SALE MULTIFAMILY HOUSING LISTINGS CITY OF EDINA JAN 1 TO OCT 11 2019 Recent Resale Pricing *: Number of Units are only included for condominiums and not for townhomes or twinhomes (NA: Not Applicable). Note: Excludes Creekside Condo Units which are Senior (55+). FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 84 Select Photos – For-Sale Multifamily 5220 France Ave S Edina Flats York Place Edina Galleria Residences Village Homes at Centennial Lakes Hawthorne Place FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 85 Home Resales per Square Foot (“PSF”) Table FS-10 shows the distribution of home resales by sales price per square foot (“PSF”) from 2013 through September 2019. The sales per square foot metric is the sales price of the home divided by the finished square footage. Table FS-11 illustrates PSF pricing between existing homes and new construction in Edina and the Twin Cities Metro Area. The graphs on the fol- lowing page visually display the sales data. • The median and average prices per square foot increased in Edina between 2010 and 2019. The City’s median prices per square foot for single-family and owned multifamily homes were $165 and $105, respectively, in 2010 before increasing to $209 and $168, respectively, in 2019. • Between 2010 and 2019, Edina’s single-family prices averaged $197 per square foot and owned multifamily prices averaged $156 per square foot. By comparison, the Twin Cities Metro’s single-family prices averaged $128 per square foot and its multifamily housing prices averaged $127 per square foot. Single family prices on a PSF basis, between 2010 and the end of September 2019, were 54% higher in Edina than in the Twin Cities Metro. During the same period, the City’s multifamily prices were 23% higher than in the Twin Cit- ies Metro. FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 86 • On average, the price of an existing single home in Edina between 2010 and September 2019 was 43% less than the price of new construction. New construction prices during the same period were 51% higher in Edina than in the Twin Cities Metro. Year1 Avg.Median Avg. Median Avg.Median Avg.Median 2013 $189 $178 $148 $121 $117 $111 $113 $100 2014 $197 $184 $150 $121 $125 $117 $126 $108 2015 $201 $188 $158 $133 $130 $122 $128 $112 2016 $205 $196 $166 $139 $137 $129 $135 $118 2017 $213 $199 $174 $146 $146 $137 $146 $128 2018 $216 $206 $178 $160 $156 $146 $159 $140 2019 $221 $209 $190 $168 $161 $151 $167 $146 Note: Twin Cities Metro Area = Twin Cities MSA (Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, & Washington Counties) 1Prices are from December of Each Year. Prices are through September 2019. Source: Greater Mpls Area Association of Realtors & Maxfield Research & Consulting, LLC. Single-Family Multifamily Single-Family Multifamily TABLE FS-10 AVERAGE & MEDIAN SALES PRICE PER SQUARE FOOT (PSF) 2013 to 20191 EDINA AND TWIN CITIES METRO AREA Edina Twin Cities Metro Area* $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 2013 2014 2015 2016 2017 2018 2019Avg. PSFAverage Sales Price Per Square Foot City of Edina Single-Family City of Edina Multifamily Twin Cities MSA Single-Family Twin Cities MSA Multifamily FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 87 • The average price per square foot of new multifamily homes in Edina between 2014 and 2015 increased 178% from $246 per square foot to $684 per square foot. In addition, the median price per square foot of new multifamily homes in Edina increased 292.8% from $180 per square foot to $707 between 2014 and 2015. The dramatic increase in multifamily housing prices in Edina suggests a looming affordability crisis if current trends continue. Year 1 Avg.Median Avg. Median Avg.Median Avg.Median 2013 $185 $175 $271 $250 $130 $110 $252 $184 2014 $192 $180 $262 $241 $138 $118 $246 $180 2015 $195 $181 $256 $233 $153 $133 $684 $707 2016 $200 $191 $256 $232 $159 $138 $529 $647 2017 $207 $195 $291 $275 $172 $146 $657 $657 2018 $212 $204 $298 $291 $176 $160 $686 $686 2019 $215 $205 $308 $301 $189 $168 $686 $686 Year 1 Avg.Median Avg. Median Avg.Median Avg.Median 2013 $115 $109 $149 $143 $110 $98 $152 $137 2014 $122 $115 $159 $151 $121 $106 $203 $170 2015 $128 $120 $162 $155 $126 $110 $176 $157 2016 $135 $127 $166 $157 $133 $117 $185 $157 2017 $144 $135 $171 $162 $143 $126 $203 $169 2018 $154 $144 $179 $170 $154 $137 $217 $181 2019 $159 $149 $184 $175 $161 $144 $233 $187 Construction which is from November 2018 Sources: Greater Mpls Area Assoc of Realtors & Maxfield Research & Consulting, LLC. Existing Home Single-Family New Const Single-Family Single-Family Multifamily Multifamily Existing Home Existing Home Note: Twin Cities Metro Area = Twin Cities MSA (Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, & Washington Counties) Twin Cities Metro Area Multifamily TABLE FS-11 MEDIAN SALES PRICE PER SQUARE FOOT (PSF COMPARISON) EXISTING HOME VS. NEW CONSTRUCTION EDINA AND TWIN CITIES METRO AREA 2013 to 20191 Edina New Const New Const 1Prices are from December of Each Year. Prices are through September in 2019. New Const Multifamily Existing Home Single-Family FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 88 $241 $293 $254 $271 $262 $256 $256 $291 $298 $308 $173 $168 $171 $185 $192 $195 $200 $207 $212 $215 $511 $471 $334 $252 $246 $684 $529 $657 $686 $686 $115 $109 $111 $130 $138 $153 $159 $172 $176 $189 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019PSFEXISTING VS NEW CONSTRUCTION PSF COSTS: EDINA City of Edina New Single-Family Construction City of Edina Existing Single-Family Construction City of Edina New Multifamily Construction City of Edina Existing Multifamily Construction FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 89 Actively Marketing Subdivisions There are three actively marketing single family subdivisions in Edina. They are: West Ridge Farms in Parkwood Knolls, Olde Vernon and Blake Circle. West Ridge Farms in Parkwood Knolls is in the Parkwood Knolls neighborhood and homes are being offered by Carl M Hansen Compa- nies. The Blake Circle subdivision is north of Bredesen Park on the edge of the Countryside neighborhood near Highway 100. Olde Vernon is also in the Countryside neighborhood. Edina Neighborhoods Edina is comprised of 45 distinct neighborhoods as depicted in the table and map on the follow- ing pages. Neighborhoods range from dense single-family areas in eastern Edina (Morningside and Country Club) to less dense single-family neighborhoods in western Edina (Rolling Green, Parkwood Knolls, and Braemar Hills). The dense and walkable single-family neighborhoods of eastern Edina share similarities with the neighboring Southwest Minneapolis neighborhoods of Linden Hills and Fulton. In contrast, the less dense single-family neighborhoods of western Edina (Rolling Green, Parkwood Knolls, and Braemar Hills) share more in common with nearby Eden Prairie and Minnetonka neighborhoods than those in eastern Edina. Areas with large pro- portions of multifamily housing in the city include: Southdale, Promenade, Centennial Lakes, Edinborough, 50th and France, and Grandview. **East of MN State Hwy 100 & South of MN State Hwy 62. ***West of MN State Hwy 100 & North of MN State Hwy 62. ****East of MN State Hwy 100 & North of MN State Hwy 62. Note: A small portion of the Todd Park Neighborhood extends from Northwest Edina into Northeast Edina. Sources: City of Edina, ESRI Northwest Edina*** Northeast Edina**** Presidents, Parkwood Knolls, Bredesen Park, Interlachen Park, Fox Meadow, Countryside, Rolling Green, Highlands, Hilldale, Todd Park, Grandview, Melody Lake, & Birchcrest. Morningside, Sunny Slope, Country Club, White Oaks, Golf Terrace Heights, Arden Park, 50th & France, Concord, Minnehaha Woods, Pamela Park, Creek Knoll Chowen Park, & Stachauer Park *West of MN State Hwy 100 & South of MN State Hwy 62. TABLE FS-12 EDINA CITY NEIGHBORHOODS Southwest Edina* Southeast Edina** Lake Cornelia, South Cornelia, Lake Edina, Southdale, Promenade, Parklawn, Pentagon Park, Centennial Lakes, & Edinborough. Indian Hills, Indian Trails, Creek Valley, Normandale Park, Brookview Heights, The Heights, Cahill, Prospect Knolls, Dewey Hill, & Braemar Hills. FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH & CONSULTING, LLC 90 Edina City Neighborhoods FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 91 Select Neighborhood Photos Morningside Morningside Country Club Minnehaha Woods Country Club Minnehaha Woods FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 92 Bredeson Park Bredeson Park Pamela Park Rolling Green Pamela Park Rolling Green FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 93 Parkwood Knolls Parkwood Knolls Strachauer Park Strachauer Park Chowen Park Chowen Park FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 94 Arden Park Arden Park Todd Park Todd Park Creek Knoll Creek Knoll FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 95 School Districts School districts have a direct impact on community home values. Edina is largely included in the Edina School District (District 273). Other areas of the City however, are included in the fol- lowing school districts: Hopkins (District 270), Eden Prairie (District 272) and Richfield (District 280). The Hopkins School District reaches into northwestern Edina. The Richfield School Dis- trict includes a small portion of southeast Edina, primarily near the Southdale Mall. Far south- western Edina, near Braemar Golf Course, is in the Eden Prairie School District (District 272). No single or multifamily homes are found in the area included in the Eden Prairie District. Edina City and School District Boundaries FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 96 Edina and Nearby Community High Schools • Edina Senior High is ranked the 10th best high school in the state and first among its neigh- boring peer institutions according to an online study published by US News and World Re- port. Nationally Edina Senior High is ranked 614th. • Of the eight neighboring high schools, Edina Senior High has the highest college readiness score 62.9. The college readiness score is based on state and Advanced Placement (AP) Testing. The second highest school was Southwest Senior High in Minneapolis at 52.0. • Edina Senior High has the highest graduation rate among neighboring schools at 96%. The average graduation rate among the nine schools analyzed was 87.6% and ranged from 81% at Richfield Senior High to 96% at Edina High School. • Among the nine schools examined, Edina Senior High had the second highest enrollment at 2,050. Only Eden Prairie Senior High had more students (3,018). However, for the school year analyzed (2016-2017), Edina Senior High contained grades 10 through 12, while Eden Prairie Senior High serviced grades 9 through 12. Edina and Hopkins were the only two of FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 97 the nine senior highs that serviced grades 10 through 12. Since the 2018-2019 school year Edina high school has included grades 9 through 12. • The student-teacher ratio of 20 students to every teacher at Edina Senior High was the sec- ond highest of the nine senior highs. Only Jefferson Senior High in Bloomington had a higher ratio (21 students to every teacher). The average of all nine schools was 19 students to every teacher. • One measure of college preparation is the taking of Advanced Placement (AP) courses in high school. The AP participation rate at Edina Senior High was 70%. Edina’s 70% participa- tion rate was the second highest rate of the nine schools examined. Only Southwest High School in Minneapolis had a higher AP participation rate (72%). The average AP participa- tion rate at the nine schools was slightly below 50% (49.4%) with a range of 24% at Richfield Senior High to 72% at Southwest Senior High. • In the most recent Quality of Life survey conducted among Edina households, 10% of re- spondents identified that the quality of schools was their most liked attribute of living in Edina. This compares to 40% of convenient location/walkability/accessibility and 13% who identified safety as their most liked attribute. FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 98 High School Address National Rankings Statewide Rankings Minneapolis Metro Rankings Grades Served*Enrollment Student Teacher Ratio Graduation Rate College Readiness** Advanced Placement (AP) Participation Rate Edina Senior High 6754 Valley View Rd Edina 55439 614 10 10 10-12 2,050 20:1 96%62.9 Jefferson Senior High 4001 W 102nd St Bloomington 55437 1,238 19 19 9-12 1,679 21:1 91%46.9 Eden Prairie Senior High 17185 Valley View Rd Eden Prairie 55346 1,977 33 31 9-12 3,018 18:1 87%39.9 Southwest Senior High 3414 W 47th St Minneapolis 55410 2,466 41 36 9-12 1,794 18:1 88%52.0 Hopkins Senior High 2400 Lindbergh Dr Minnetonka 55305 4,254 72 57 10-12 1,656 19:1 90%38.7 Washburn Senior High 201 W 49th St Minneapolis 55419 5,613 98 75 9-12 1,641 18:1 82%23.4 St Louis Park Senior High 6425 W 33rd St St Louis Park 55426 5,615 99 76 9-12 1,446 18:1 90%46.0 Kennedy Senior High 9701 Nicollet Ave S Bloomington 55420 8,435 161 96 9-12 1,646 19:1 83%22.1 Richfield Senior High 7001 Harriet Ave S Richfield 55423 9,638 191 105 9-12 1,124 18:1 81%15.1 *: Edina High School served grades 10-12 in the school year analyzed (2016-2017). Since the 2018-2019 school year Edina High School has served grades 9-12. 32% 24% 6 7 8 9 36% Table FS-13 Source: US News and World Report and RTI International utilizing data from The Common Core of Data (U.S. Department of Education), state math and reading assessments, The College Board, and International Baccalaureate (IB). Note: Analyzed Data is based off 2016-2017 school year. **: Based on state proficiency and Advanced Placement (AP) tests. EDINA & NEIGHBORING COMMUNITIES: HIGH SCHOOL RANKINGS 1 2 3 4 5 70% 57% 47% 72% 49% 58% FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 99 Summary of For-Sale Market Conditions • Beginning in 2012, the housing market was showing signs of recovery as the number of list- ings and median resale prices began to rise. A steady increase in the median resale price continued until 2017, followed by a modest decrease between 2017 and 2018 and then in- creased again between 2018 and year-to-date 2019. • As of October 6, 2019, 241 single-family homes were listed for sale in Edina. Of those, 191 were previously owned and 50 were new construction. The City also had 17 owned multi- family homes listed for sale and of those, 13 were previously owned and four were new construction. • New single-family homes priced between $1,200,000 and $1,299,999 and $1,400,000 and $1,499,999 comprised the two largest percentages of new home listings. • The median resale price of active single-family listings in Edina was $1,462,450 for new con- struction and $799,000 for previously owned. • Owned multifamily home listings between $100,000 and $199,999 (48.1%) and $200,000 and $299,999 (25.9%) comprised 73% of all multifamily listings between January 1 and Oc- tober 6, 2019. • Single-family homes accounted for 93.4% of all active listings. Most of the owned multifam- ily listings were condominiums as only four townhomes/twinhomes were actively market- ing. • One-story homes comprise 94.0% of new active single-family listings in the City while two- story homes comprise 6.0% of new active single-family listings. By comparison, most previ- ously owned single-family homes are two stories (53.7%), followed by one story homes (32.1%). • The median and average prices per square foot increased in Edina between 2010 and 2019. The City’s median prices per square foot for single-family and owned multifamily homes were $165 and $105 respectively, in 2010 before increasing to $209 and $168, respectively in 2019. A • On average, the price of an existing single home in Edina between 2010 and September 2019 was 43% less than the price of new construction. New construction prices during the same period were 51% higher in Edina than in the Twin Cities Metro. • Three new subdivisions are currently marketing in Edina: West Ridge Farms in Parkwood Knolls, Olde Vernon and Blake Circle. FOR-SALE MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 100 • Most of Edina is within the Edina School District (District 273), but small portions of the City are within the Hopkins School District (District 270), Richfield School District (District 280) and the Eden Prairie School District (District 272). • Edina Senior High is ranked the 10th best high schools in the state and first among its neigh- boring peer institutions according to an online study published by US News and World Re- port. Nationally, Edina Senior High was ranked 614th of 17,245 schools that were ranked, in the upper 5% of the nation. RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 101 Introduction Maxfield Research and Consulting LLC identified and surveyed rental properties throughout Edina. In addition, interviews were conducted with rental housing management firms and oth- ers in the community familiar with Edina’s rental housing stock. For purposes of the analysis, rental properties are classified into three general categories, tradi- tional general occupancy, senior (age-restricted) and non-traditional (single-family, townhomes and condominiums that were constructed as owner-occupied, but are currently rented). Senior properties are included in the Senior Housing Market Analysis section of this report. Traditional rentals are divided into three groups: market rate (those without income restrictions); afforda- ble or shallow-subsidy housing (those receiving tax credits or another type of shallow-subsidy and where there is a quoted rent for the unit and a maximum income that cannot be exceeded by the tenant); and subsidized or deep-subsidy properties (those with income restrictions at 50% or less of AMI where rental rates are based on 30% of the household’s adjusted gross in- come. Overview of Rental Market Conditions Maxfield Research utilized data from the American Community Survey (ACS) and Marquette Ad- visors Apartment Trends report for the Twin Cities Metro Area to summarize rental market con- ditions in Edina, surrounding communities and the Twin Cities Metro Area. The data from Mar- quette Advisors is shown for the 3rd Quarter of 2018 and 3rd Quarter of 2019; ACS data is as of 2017. The ACS is an ongoing survey conducted by the United States Census Bureau that pro- vides data every year rather than every ten years as presented by the Decennial Census. ACS provides estimates of all rental units, regardless of structure size. The following are key points concerning Edina’s rental conditions. • The equilibrium vacancy rate for rental housing is considered to be 5.0%. This allows for normal turnover and an adequate supply of alternatives for prospective renters. As of the 3rd Quarter of 2019, the vacancy rate was 2.5% in the Twin Cities Metro Area and 2.8% in Edina. Vacancy rates in neighboring cities were; 2.9% in Southwest Minneapolis, 2.3% in Bloomington, 2.8% in Eden Prairie, 1.9% in Minnetonka and 1.8% in Hopkins. • Edina’s 3nd quarter vacancy rate was 8.4% for its two-bedroom plus den units while its three -bedroom plus den units had a vacancy rate of 0%. Studio and one-bedroom units had va- cancy rates of 2.0% and 1.6% respectively. One-bedroom plus den and two-bedroom units had vacancy rates of 4.8% and 3.9%, respectively. Three-bedroom units had a 1.3% vacancy rate while penthouse units had no vacancies. The most recent 4th Quarter 2019 overall va- cancy rate for Edina had pushed up to 5.9%. RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 102 1 BR 2 BR 3 BR w/D Average Total Studio 1 BR w/ Den 2 BR w/ Den 3 BR /4BR +Increase Units 3,947 152 1,738 147 1,570 95 225 20 -- No. Vacant 110 3 28 7 61 8 3 0 -- Avg. Rent $1,595 $1,236 $1,397 $1,753 $1,680 $2,595 $2,057 $3,779 6.4% Vacancy 2.8%2.0%1.6%4.8%3.9%8.4%1.3%0.0%0.1% Units 3,429 118 1,478 136 1,395 66 216 20 -- No. Vacant 94 4 25 4 54 1 6 0 -- Avg. Rent $1,499 $1,149 $1,296 $1,926 $1,529 $2,401 $1,854 $3,725 3.2% Vacancy 3.2%3.4%1.7%2.9%3.9%1.5%3.2%0.0%-1.9% Units 9,829 1,759 5,716 133 2,022 61 138 NA -- No. Vacant 283 49 140 1 88 2 3 NA -- Avg. Rent $1,326 $979 $1,172 $1,837 $1,816 $4,972 $2,916 NA 4.1% Vacancy 2.9%2.8%2.4%0.8%4.4%3.3%2.2%NA 0.3% Units 9,544 1,721 5,555 125 1,957 NA 91 NA -- No. Vacant 229 42 111 3 68 NA 3 NA -- Avg. Rent $1,272 $983 $1,114 $1,835 $1,760 NA $2,545 NA 6.6% Vacancy 2.4%2.4%2.0%2.4%3.5%NA 3.3%NA 0.5% Units 7,674 479 3,356 339 3,061 73 366 NA -- No. Vacant 174 17 78 5 70 0 4 NA -- Avg. Rent $1,256 $1,041 $1,102 $1,384 $1,383 $1,368 $1,691 NA 7.7% Vacancy 2.3%3.5%2.3%1.5%2.3%0.0%1.1%NA 0.4% Units 7,459 439 3,295 329 3,000 73 359 NA -- No. Vacant 140 17 65 6 43 2 7 NA -- Avg. Rent $1,166 $908 $1,042 $1,452 $1,234 $1,363 $1,562 NA 5.9% Vacancy 5.9%3.9%2.0%1.8%1.4%2.7%1.9%NA -2.0% Units 4,586 126 1,604 186 2,110 169 373 18 -- No. Vacant 128 2 47 3 52 9 15 0 -- Avg. Rent $1,352 $974 $1,197 $1,396 $1,384 $1,582 $1,800 $2,314 3.4% Vacancy 2.8%1.6%2.9%1.6%2.5%5.3%4.0%0.0%0.4% Units 4,586 126 1,604 186 2,110 169 373 18 -- No. Vacant 110 7 37 5 57 0 4 0 -- Avg. Rent $1,307 $890 $1,113 $1,197 $1,382 $1,546 $1,757 $2,413 7.9% Vacancy 2.4%5.6%2.3%2.7%2.7%4.3%1.1%0.0%0.4% ContinuedQ3/2018SOUTHWEST MINNEAPOLIS Q3/2019Q3/2018BLOOMINGTON Q3/2019Q3/2018EDEN PRAIRIE Q3/2019Q3/2018Q3/2019TABLE R-1 AVERAGE RENTS/VACANCY TRENDS EDINA, SURROUNDING COMMUNITIES, & TWIN CITIES METRO THIRD QUARTER 2018 & THIRD QUARTER 2019 EDINA RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 103 1 BR 2 BR 3 BR 2/D Average Total Studio 1 BR w/ Den 2 BR w/ Den 3 BR /4BR +Increase Units 4,700 123 1,882 188 2,072 107 310 18 -- No. Vacant 90 2 45 5 28 1 9 0 -- Avg. Rent $1,424 $1,215 $1,296 $1,334 $1,475 $1,666 $1,864 $2,292 5.4% Vacancy 1.9%1.6%2.4%2.7%5.2%0.9%2.9%0.0%-0.8% Units 4,452 123 1,767 207 1,968 107 262 18 -- No. Vacant 118 4 52 7 45 5 4 1 -- Avg. Rent $1,351 $1,279 $1,223 $1,337 $1,402 $1,641 $1,723 $2,100 4.4% Vacancy 2.7%3.3%2.9%3.4%2.3%4.7%1.5%5.6%0.4% Units 3,045 211 1,416 13 1,208 11 186 NA -- No. Vacant 56 3 25 0 22 0 6 NA -- Avg. Rent $1,210 $949 $1,091 $1,380 $1,325 $1,337 $1,651 NA 6.9% Vacancy 1.8%1.4%1.8%0.0%1.8%0.0%3.2%NA 0.3% Units 3,045 211 1,416 13 1,208 11 186 NA -- No. Vacant 47 0 21 0 21 0 5 NA -- Avg. Rent $1,132 $862 $1,011 $1,338 $1,244 $1,337 $1,602 NA 6.9% Vacancy 1.5%0.0%1.5%0.0%1.7%0.0%2.7%NA -0.3% Units 6,716 356 3,086 300 2,759 47 168 NA -- No. Vacant 170 10 63 4 89 1 3 NA -- Avg. Rent $1,391 $1,440 $1,192 $1,561 $1,537 $2,153 $2,044 NA 9.1% Vacancy 2.5%2.8%2.0%1.3%3.2%2.1%1.8%NA 0.7% Units 6,241 315 2,853 281 2,584 47 NA NA -- No. Vacant 172 4 66 13 87 0 NA NA -- Avg. Rent $1,350 $1,349 $1,177 $1,514 $1,460 $2,063 NA NA 6.0% Vacancy 2.8%1.3%2.3%4.6%3.4%0.0%NA NA 0.8% Units 149,385 10,551 65,423 3,589 59,835 2,229 7,405 353 -- No. Vacant 3,797 286 1,607 80 1,506 110 196 12 -- Avg. Rent $1,265 $1,028 $1,115 $1,488 $1,363 $2,065 $1,656 $2,889 6.5% Vacancy 2.5%2.7%2.5%2.2%2.5%4.9%2.6%3.4%0.2% Units 141,705 8,072 62,872 3,504 58,065 1,660 7,080 452 -- No. Vacant 3,274 175 1,470 88 1,358 40 136 7 -- Avg. Rent $1,188 $980 $1,047 $1,438 $1,272 $2,025 $1,561 $2,481 3.6% Vacancy 2.3%2.2%2.3%2.5%2.3%2.4%1.9%1.5%-0.2%62834 *: Edina's 2018 & 2019 3 BR w/den & penthouse data is combined/averaged. NA: Not Available. Sources: Marquette Advisors; Maxfield Research & Consulting, LLCQ3/2019Q3/2018TABLE R-1 (CONTINUED) AVERAGE RENTS/VACANCY TRENDS ST LOUIS PARK THE EDISON PRIMARY MARKET AREA Fourth Quarter 2017 and Fourth Quarter 2018 Q/HOPKINS Q3/2019Q3/2018Q3/2019MINNETONKA Q3/2019Q3/2018TWIN CITIES METRO AREAQ3/2018 RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 104 • The average monthly rent in Edina increased by $96 from the third quarter of 2018 through the third quarter of 2019, an increase of 6.4%. By comparison, the average monthly rent in the Twin Cities Metro Area increased by an average rate of 6.5% to $1,265 as of the 3rd quarter of 2019. • In Edina, average monthly rental rates range from $1,236 for a studio unit to $4,421 for a penthouse unit as of 3rd Quarter 2019. Monthly rent for three-bedroom units is lower than for two-bedroom plus den units reflecting the older age of many rental properties in Edina. Average rents increased the most for three-bedroom units, up 10.9% over the year, fol- lowed by 9.9% for two-bedroom units and 9% for one-bedroom plus den units. Since 2010, the average monthly rent in Edina has increased 47.4%, from $1,082 per month in 2010 to $1,595 per month in 2019. A portion of this increase reflects new rental product recently constructed which has higher rents, increasing the overall average. • The below market equilibrium vacancy rate in Edina reflects a tight rental market and lim- ited product available, primarily among older rental properties. Six new market rate prop- erties were surveyed in Edina, all built since 2013. Vacancies at these new properties were higher than for older properties and Nolan Mains and Aria Edina are in their initial lease-up periods. Older rental properties do not offer the same level of amenities as newer rental housing stock, although many properties built prior to 1980 have been remodeled and in- clude new kitchens, new bathrooms and upgraded common areas amenities. One example is the Cedars of Edina that was built in 1977 but renovated in 2014. The Cedars of Edina has amenities that are typical of newer properties including an in-unit washer and dryer, conci- erge, fitness center, and pool. • The following chart illustrates historical rental market conditions in Edina. Overall, vacancy rates have remained below market equilibrium except in 2016. RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 105 • The average rent as of 3rd Quarter 2019 was $1,595 in Edina, $1,336 in Southwest Minneap- olis, $1,256 in Bloomington, $1,424 in Minnetonka, $1,210 in Hopkins, $1,352 in Eden Prai- rie, and $1,391 in St Louis Park. A comparison of vacancy rates revealed a rate of 2.8% in Edina, 2.9% in Southwest Minneapolis, 2.3% in Bloomington, 1.9% in Minnetonka, 1.8% in Hopkins, 2.8% in Eden Prairie, and 2.5% in St Louis Park. RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 106 Table R-2 shows the breakdown by gross rent of unit types in Edina. Below are key points from the chart. • Of Edina’s one-bedroom units almost 7% (6.9%) are priced at $1,500 or more. In compari- son, 3.3% of the Remainder of the PMA’s one-bedroom units and 2.6% of the Twin Cities MSA’s one-bedroom units were priced at $1,500 or more. • Edina has 12.1% of its two-bedroom units priced at $1,500 or more. This is a larger percent- age than in the Remainder of the PMA (11.0%) and the Twin Cities MSA (5.4%). • The City of Edina has a lower proportion of one-bedroom units priced between $750 and $999 (7.9%) than in the Remainder of the PMA 12.4%, and the Twin Cities MSA (14.1%). • The breakdown of unit types in Edina is 6.9% no bedroom units (studios), 42.0% one-bed- room units, 35.2% two-bedroom units, and 15.8% three or more-bedroom units. RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 107 MN #% of Total #% of Total #% of Total % of Total Total:5,950 100%18,806 100%370,234 100%100% Median Gross Rent $906 No Bedroom 413 6.9%832 4.4%23,594 6.4%5.6% Less than $300 13 0.2%0 0.0%2,122 0.6%0.6% $300 to $499 7 0.1%0 0.0%2,045 0.6%0.8% $500 to $749 74 1.2%92 0.5%7,740 2.1%1.8% $750 to $999 101 1.7%241 1.3%6,140 1.7%1.2% $1,000 to $1,499 209 3.5%335 1.8%3,434 0.9%0.7% $1,500 or more 0 0.0%164 0.9%1,868 0.5%0.4% No cash rent 9 0.2%0 0.0%245 0.1%0.1% 1 Bedroom 2,500 42.0%6,816 36.2%133,329 36.0%32.6% Less than $300 100 1.7%225 1.2%11,332 3.1%3.7% $300 to $499 161 2.7%338 1.8%8,228 2.2%3.9% $500 to $749 156 2.6%287 1.5%22,383 6.0%7.3% $750 to $999 468 7.9%2,324 12.4%52,075 14.1%10.0% $1,000 to $1,499 1,207 20.3%2,941 15.6%28,298 7.6%5.2% $1,500 or more 408 6.9%625 3.3%9,583 2.6%2.0% No cash rent 0 0.0%76 0.4%1,430 0.4%0.5% 2 Bedrooms 2,094 35.2%7,563 40.2%137,399 37.1%37.5% Less than $300 49 0.8%87 0.5%3,570 1.0%1.1% $300 to $499 0 0.0%217 1.2%3,596 1.0%2.0% $500 to $749 39 0.7%231 1.2%7,729 2.1%6.2% $750 to $999 227 3.8%490 2.6%35,719 9.6%10.6% $1,000 to $1,499 979 16.5%4,295 22.8%63,609 17.2%12.5% $1,500 or more 722 12.1%2,063 11.0%20,012 5.4%3.7% No cash rent 78 1.3%180 1.0%3,164 0.9%1.3% 3 or More Bedrooms 943 15.8%3,595 19.1%75,912 20.5%24.3% Less than $300 4 0.1%65 0.3%1,105 0.3%0.5% $300 to $499 0 0.0%73 0.4%2,267 0.6%1.1% $500 to $749 78 1.3%194 1.0%4,618 1.2%2.5% $750 to $999 31 0.5%214 1.1%4,878 1.3%3.4% $1,000 to $1,499 76 1.3%686 3.6%25,083 6.8%7.5% $1,500 or more 682 11.5%2,098 11.2%33,541 9.1%6.8% No cash rent 72 1.2%265 1.4%4,420 1.2%2.5% TABLE R-2 EDINA ANALYSIS AREA 2017 Edina Remainder of PMA BEDROOMS BY GROSS RENT, RENTER-OCCUPIED HOUSING UNITS Twin Cities MSA* Sources: 2013-2017 American Community Survey; Maxfield Research and Consulting LLC. *Includes the following counties; Anoka, Carver, Dakota, Hennepin, Scott, Ramsey, and Washington. $1,288 $1,295**$1,034 ** All median gross rent census tract data is from 2017 excluding census tract 260.13, which is from 2016. There is no available 2017 median gross rent data for census tract 260.13. RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 108 General Occupancy Rental Properties The survey of general occupancy rental properties in Edina included 54 market rate, four, shal- low-subsidy and one, deep-subsidy property in September 2019. These properties represent a combined total of 4,801 units, including 4,654 market rate units (including units in properties that are in initial lease-up), 57 shallow-subsidy (typically properties income-restricted to house- holds with incomes between 50% and 80% of Area Median Household Income (AMI) and 90, deep-subsidy units (typically properties restricted to households with incomes at or less than 50% of AMI). Market rate units may be affordable to a broad range of households, but do not have income restrictions. Table R-9 presented later in this section shows that Edina has market rate units that are affordable to households with incomes ranging from 50% to 120% or more of AMI. The above totals exclude units in properties that provide housing to individuals that have supportive services or are hard to house. There are a variety of rental properties in Edina that have fewer than 24 units including three- and four-plex buildings, duplexes, twinhomes and single-family homes. These properties are also included in the average rent and vacancy calculations shown on Tables R-4 to R -6. Table R- 7 shows affordable and subsidized rental properties. R-8 shows a summary of market rate rental units registered with the City . The total includes all types of rental units including single- family, condominiums, townhomes, duplexes and large multifamily properties. Single-family, condominium and townhome units that were originally owner-occupied, but are currently rented are considered as non-traditional rentals. RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 109 The survey of market rate rental properties identified the following total vacancies by age seg- ment: Properties built prior to 1980: 83 vacant (3.1%) Properties built from 1980 through 1999: 12 vacant (2.5%) Properties built 2000 or later: 89 vacant (6.0%) In total, the overall vacancy rate among the surveyed market rate rental units was 4.0% includ- ing properties in initial lease-up. Excluding those properties, the overall vacancy rate drops to 2.8%. The combined overall vacancy rate is well-below the 5% rate considered as market equi- librium for a stabilized rental market rate which promotes competitive rates, ensures adequate choice and allows for sufficient unit turnover. The current overall vacancy rate of 2.8% indi- cates that additional rental units are needed. Vacancy rates by year built are significantly lower for properties built 2000 or later and prior to 1980 than between 1980 and 1999. Table R-3 summarizes the number of market rate rental units by year built for Edina general oc- cupancy properties. Tables R-4 to R-6 summarize available unit types, unit sizes, rent levels and per square foot rents grouped by year built among the market rate general occupancy rental properties. 17 1,318 1,364 239 243 250 1,223 0 200 400 600 800 1,000 1,200 1,400 1,600 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010+Number of UnitsDecade Edina Market Rate Rental Properties By Year Built RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 110 Property Name/Location Yr. Built Number of Units Cedars of Edina - 7340 Gallagher Dr 55435 1977 600 Durham - 7201 York Ave S 55435 1977 (Reno. 2014)264 York Plaza- 7230 York Ave 55435 1975 261 Oaks Braemar 7150 Cahill Rd 55439 1971 115 Edina Park 4480 Parklawn Ave 55435 1971 80 Parklawn Manor - 4000 Parklawn Ave 55435 1971 44 Edina Manor Apartments - 5400 W 70th St 55439 1969 24 Valley View VIllas - 4415 Valley View Rd 55424 1969 12 The Edina Towers - 6400 Barrie Rd 55435 1969 194 Westchester - 5525 Hansen Rd 55436 1968 24 Parklawn Estates - 4141 Parklawn Ave 55435 1968 118 Normandy House Apartments - 4545 Valley View Rd 55424 1968 78 Briair Cliff - 444 Parklawn Ave 55435 1968 22 Astor Place - 6455 York Ave S 55435 1968 44 Parklawn Court - 4456 Parklawn Ct 55435 1968 24 White Oaks Apartments - 3901 49th St W 554424 1968 32 Willow Greens Apartments - 4350 - 4380 Parklawn Ave 55435 1968 22 Edina Villa Apartments - 4200-4415 Parklawn Ave 55435 1967 36 Regency Apartments - 4201 Parklawn Ave 55435 1967 18 Parklawn Apartments - 4251 Parklawn Ave 55435 1967 118 Chalet Apartments - 4415 Parklawn Ct 55435 1967 12 Interlachen Manor - 5220 Interlachen Blvd 55436 1967 17 Edina Highland Villa - 5210 Villa Way 55436 1967 165 4435 Parklawn Court - 55435 1965 40 5416 W 70th St 55439 1965 10 Cahill Court -5432 W 70th St 55439 1965 10 Cottages of Edina - 5180 Lincoln Dr 55436 1965 80 York Villa - 6304 York Ave S 55435 1965 23 6300 York - 55435 1964 22 Oaklawn Estates - 4401 Valley View Rd 55424 1963 14 Interlachen Court - Vernon Ave S 55436 1963 61 Heritage Drive Apartments- 3201 Heritage Drive 55435 1962 24 Hazelton Apartments - 4000 Hazelton Rd 55435 1962 16 4301 Valley View Rd - 4301 Valley View Rd 55424 1962 8 Heritage Court - 3105 - 3117 Heritage Dr 55435 1961 40 Fountain Manor - 4001 Mavelle Dr 55435 1961 5 4000 Mavelle Dr 55435 1961 5 5330 France Ave S - 55410 1949 12 3908 W 54th St 55424 1949 5 TABLE R-3 MARKET RATE GENERAL OCCUPANCY RENTAL PROPERTIES BY YEAR BUILT CITY OF EDINA NOVEMBER 2019 Properties Built Prior to 1980 Continued RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 111 Market Rate • Most of Edina’s larger market rate general occupancy rental properties were built prior to 1980. As shown, the median year built of market rate properties is 1968. • The newest market rate general occupancy rental properties in Edina are; Nolan Mains (2019), Aria Edina (2018), The Loden (2017), Onyx Edina (2015) and 71 France Apartments (2014). Nolan Mains, a new luxury rental property is in the 50th and France commercial dis- trict and is in initial lease-up. The first phase of the Nolan Mains development opened No- vember 1, 2019 and 10% of its units (10 units) are affordable. The affordable units are en- tirely leased. • A total of 184 vacancies were found among the market rate rental pro perties resulting in a current vacancy rate of 4.0%. The stabilized vacancy rate, which excludes properties still in initial lease up, Aria Edina (8 units) and Nolan Mains (52 units), is 2.8% as of November 2019. The stabilized equilibrium vacancy rate for market rate rental properties is consid- ered 5% to allow for adequate unit turnover and sufficient choice for renters. A vacancy rate well-below the market equilibrium level indicates some pent-up demand for new rental Property Name/Location Yr Built Number of Units Oaks Lincoln Townhomes - 5200 Lincoln Dr 55436 1990 39 Oaks Lincoln Apartments - 5200 Lincoln Dr 55436 1990 204 Vernon Oaks Apartments 5400 Vernon Ave S 55436 1987 136 Ponds of Edina - 7700 Cahill Rd 55439 1985 65 Oak Glen of Edina - 5515 Oak Glen Rd 55439 1981 38* Nolan Mains - 3945 Market St 55424 2019 90** Aria Edina - 3200 Southdale Cir 55435 2018 174*** The Loden - 5995 Lincoln Dr - 55436 2017 246 Onyx Edina - 6725 York Ave S - 55435 2015 240 71 France - 7161 France Ave S 55435 2014 241 One Southdale Place - 6800 York Ave S 55435 2013 232 Edina Gateway - 4910 W 77th St 55435 2008 36 York Place - 3121 W 69th St 55435 2008 114 Cornelia Place - 4025 W 65th St 55435 2002 100 Total 4,654 ** There are a total of 100 units, of which 90 are market rate and 10 are affordable. CITY OF EDINA NOVEMBER 2019 TABLE R-3 (CONTINUED) Median Year Built: 1968 ** There are a total of 184 units, of which 176 are market rate and 8 are affordable. Sources: Maxfield Research & Consulting, LLC, City of Edina, Apartments.com, HUD Properties Built Between 1980 and 1999 Properties Built 2000 or Later *: There are a total of 64 units, of which 38 are market rate and 26 are affordable. MARKET RATE GENERAL OCCUPANCY RENTAL PROPERTIES BY YEAR BUILT RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 112 housing. The challenge, however, is that not all the demand is for units with rents at the top end of the market. While some renters may elect to move-up and pay more in rent, others are not able to do so and would either prefer to pay a lower rent or need to pay less because of an income threshold to not be cost-burdened. Many of the residents choosing units at the new rental properties in Edina are empty nesters that have sold homes in Edina or other nearby communities. • Properties are grouped by year built. There is overlap among these groupings as some older properties have been remodeled. Renovated properties include The Cedars of Edina and Durham, both built in 1977 and renovated in 2014. Remodeling often enables a prop- erty to “refresh” and to charge higher rents than its original age would indicate. Tables R-4 to R-6 show a summary of these properties by unit type with average rents, average unit size, rent range and rent per square foot. • Table R-4 shows a summary for properties built in 2000 or later. One property opened in 2002 and two opened in 2008. However, the majority opened in 2013 or later. The table shows that the average rent per square foot is $2.07 with a monthly rent of $2,318 and an average unit size of 1,453 square feet. As shown, 9.3% of the units are one bedroom, 46.3% of the units are two bedrooms, 37.1% of the units are three bedrooms and 0.3% of the units are four bedrooms. These proportions are almost the opposite of what has been developed recently in Downtown Minneapolis and the Uptown District in southwest Minneapolis, where studio and one-bedroom unit types dominate. • Rents ranged from $1,185 for a studio apartment to $4,354 per month for a three-bedroom unit. Data for Nolan Mains’ studio, two-bedroom penthouse, three-bedroom, three-bed- room penthouse, and four-bedroom penthouse units were unavailable. Average monthly rents by unit type were: Studio/Alcove: $1,472 1BR: $1,755 2BR: $2,674 3BR: $3,371 4BR: n/a RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 113 • Table R-5 shows a summary for market rate properties built from 1980 through 1999. The table shows that the average rent per square foot for these properties is $1.65 with a monthly rent of $1,566 and an average unit size of 1,051 square feet. As shown, 66.9% of the units are two-bedrooms, 29.8% are one-bedroom, 1.9% are studios, and 1.9% are three- bedrooms. • Rents ranged from $1,096 for a studio apartment to $2,464 per month for a three-bedroom unit. Average monthly rents by unit type were: Studio/Alcove: $1,098 1BR: $1,370 2BR: $1,655 3BR: $2,140 Total % of Avg. Avg. Rent/ Unit Type Units Total Low -High Rent Sq. Ft. Studio/Alcove 137 9.3%$1,185 -$2,149 $1,472 $2.35 1BR 682 46.3%$1,295 -$2,695 $1,755 $2.03 2BR 547 37.1%$1,795 -$4,354 $2,674 $1.91 3BR 103 7.0%$1,834 -$4,051 $3,371 $2.00 4BR 4 0.3%NA -NA NA NA Total:1,473 100.0%$1,185 -$4,354 $2,318 $2.07 Table includes data for properties where information was available. Monthly Rents TABLE-R-4 SURVEYED UNIT TYPE SUMMARY SELECT GENERAL OCCUPANCY RENTAL PROPERTIES Built 2000 or later NOVEMBER 2019 Source: Maxfield Research and Consulting, LLC Range NA: Not Available. Penthouse units (2BR PH, 3BR PH, and 4BR PH were combined with non-penthouse units 2BR, 3BR, and 4 BR) RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 114 • Table R-6 shows a summary for market rate properties built prior to 1980. Valley View Vil- las was excluded as management could not be reached. The table shows that the average rent per square foot for these properties is $1.46 with a monthly rent of $1,325 and an av- erage unit size of 953 square feet. As shown, 44.4% of the units are two-bedrooms, 44.2% are one-bedroom, 7.9% are three-bedroom, and 3.5% are studio units. • Rents range from $740 for a studio apartment to $3,165 per month for a three-bedroom unit. Average monthly rents by unit type were: Studio/Alcove: $995 1BR: $1,088 2BR: $1,260 3BR: $1,957 • The broad range in rents for each unit type among the oldest properties reflects a variation in features and amenities and units that have been substantially remodeled versus those that have not. Total % of Avg. Avg. Rent/ Unit Type Units Total Low -High Rent Sq. Ft. Studio/Alcove 10 1.9%$1,096 -$1,100 $1,098 $2.37 1BR 156 29.8%$1,155 -$1,650 $1,370 $1.52 2BR 350 66.9%$1,381 -$2,357 $1,655 $1.38 3BR 7 1.3%$1,812 -$2,464 $2,140 $1.31 4BR 0 0.0%NA -NA NA NA Total:523 100.0%$1,096 -$2,464 $1,566 $1.65 The table includes data from properties where there was complete information Source: Maxfield Research and Consulting, LLC Range N/A: Not Applicable Monthly Rents TABLE-R-5 SURVEYED UNIT TYPE SUMMARY SELECT GENERAL OCCUPANCY RENTAL PROPERTIES Built 1980 to 1999 NOVEMBER 2019 RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 115 Shallow-Subsidy Properties that provide a shallow-subsidy have income restrictions, but households that qualify to reside in units at these properties usually pay a set monthly rent that is affordable to their income level. Properties developed as shallow-subsidy typically have rental rates set at 50% up to 80% of area median household income. At times, a household may qualify at a higher pro- portion of income (say 60%), but the rent will be set at 50% of AMI. Housing revenue bonds, TIF financing and Low-Income Housing Tax Credits are example of programs that offer financing to enable the developer to provide a lower rent level (shallow-subsidy). • There are six general occupancy rental properties in Edina that offer all or a portion of their units at rents that are affordable to households with incomes at or below 60% or 50% of the household area median family household income (HAMFI) for the Twin Cities Metro Area which was $100,000 as of 2019. At the time of the survey, 11 units were identified as va- cant. Table R-8 shows information on shallow-subsidy (affordable) and deep-subsidy (subsi- dized) properties. • The two newest properties in Edina with shallow subsidy units are Aria Edina and Nolan Mains. Aria Edina is a market rate/affordable property with 184 units, of which 10 are af- fordable to households at 60% of AMI. Of the 10 units, eight are studios ranging in size from 487 to 524 square feet and priced at $1,050 and two are 693 square foot alcove units priced at $1,125. The first phase of Nolan Mains opened November 1, 2019. When com- pleted, the property will consist of 100 units, of which 10 are affordable to moderate-in- come households with rents targeted at between 50% and 60% AMI. Of the 10 affordable units, eight are one-bedroom and two are two-bedrooms units. Aria Edina and Nolan Mains Total % of Avg. Avg. Rent/ Unit Type Units Total Low -High Rent Sq. Ft. Studio/Alcove 90 3.5%$740 -$1,428 $995 $1.85 1BR 1,143 44.2%$700 -$1,706 $1,088 $1.41 2BR 1,150 44.4%$925 -$1,810 $1,260 $1.23 3BR 205 7.9%$1,394 -$3,165 $1,957 $1.33 4BR 0 0.0%NA -NA NA NA Total:2,588 100.0%$700 -$3,165 $1,325 $1.46 Table includes data from properties for which information was available Note: Excludes Valley View Villas for which detailed data is not available. NA: Not Available TABLE-R-6 UNIT TYPE SUMMARY SELECT GENERAL OCCUPANCY RENTAL PROPERTIES Built Prior to 1980 NOVEMBER 2019 Monthly Rents Range Source: Maxfield Research and Consulting, LLC RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 116 offer many amenities to residents including outdoor lounge decks with grilling areas, roof- top terrace, pub room; bocce court, and enclosed heated parking. Deep-Subsidy Properties that provide deep-subsidies are restricted to households with incomes of 50% or less of AMI and the tenant pays no more than 30% of their income for rent; the remaining portion of the rent is paid to the landlord. Housing programs include project-based Section 8, Section 811 (primarily group living arrangements or housing for those with disabilities). Housing vouch- ers also fall into this category but are used in the private market. Senior programs (Section 8 and Section 202) are discussed in the senior section. • Yorkdale Townhomes and Oak Glen are the only two deep-subsidy general occupancy rental properties in Edina with a combined total of 116 units. Of the 116 units, four are studios, 10 are one-bedroom, 56 are two-bedroom, 46 are three-bedroom and four are four-bedroom. • Typically, deep-subsidy rental properties should be able to maintain vacancy rates of 3% or less in most housing markets. A vacancy rate of 0% for these units indicates a need for more of this housing. Cuts in Federal funding for programs to construct these types of units has resulted in long waiting lists and virtually none of these units are being developed, ex- cept when combined with other income-restricted or market rate units. There are currently no vacancies at either Yorkdale Townhomes or Oak Glen. York Glen has a substantial wait list of more than two years for its studio units and at least one year or more for its three- bedroom units. The substantial wait lists demonstrate a significant need for more deep- subsidy housing. • There are a combined 159 shallow and deep subsidy rental units in Edina. This is an esti- mated 3% (3.3%) of all rental units in the City (4,813 units). By comparison, almost 97% (96.7%) of rental units in the City are market rate. RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 117 Year TotalProject Name/ Address Built Units Vacant Mkt/Aff Description/Comments Nolan Mains 2019 90 52 Studio -1 -----457 -457 ----- 3945 Market St 55424 (100 Total Units)1BR -32 $2,219 -$2,695 692 -998 $2.70 -$3.21 (In Initial lease Up)2BR -28 $3,484 -$3,927 1,184 -2,064 $1.90 -$2.94 2BR PH -6 -----1,471 -1,896 ----- 3BR -9 -----1,852 -2,153 ----- 3BR PH -10 -----1,871 -2,671 ----- 4BR PH -4 -----2,387 -2,980 ----- Aria Edina 2018 174 8 Alcove -11 $1,495 -$1,625 693 -693 $2.16 -$2.34 3200 Southdale Cir 55435 (184 Total Units)1BR -67 $1,595 -$2,215 759 -923 $2.10 -$2.40 (In initial lease Up)2BR -84 $2,341 -$4,225 1,170 -1,338 $2.00 -$3.16 3BR -12 $3,545 -$3,920 1,546 -1,590 $2.29 -$2.47 71 France 2014 241 6 Studio -63 $1,410 -$1,435 577 -590 $2.43 -$2.44 7161 France Ave S 55435 1BR -58 $1,395 -$2,005 620 -1,051 $1.91 -$2.25 2BR -58 $1,846 -$2,425 968 -1,285 $1.89 -$1.91 3BR -62 $1,834 -$3,043 1,254 -1,412 $1.46 -$2.16 One Southdale Place 2013 232 12 Studio -18 $1,375 -$1,484 550 -621 $2.39 -$2.50 6800 York Ave S 55435 1BR -134 $1,450 -$1,950 670 -1,115 $1.75 -$2.16 2BR -79 $2,092 -$4,354 1,028 -1,663 $2.04 -$2.62 3 BR -1 $4,051 -$4,051 1,433 -1,433 $2.83 -$2.83 Onyx Edina 2015 240 0 Studio -10 $1,319 -$2,149 609 -658 $2.17 -$3.27 6725 York Ave S 55435 1BR -135 $1,333 -$2,158 676 -1,137 $1.90 -$1.97 2BR -86 $1,842 -$3,180 1,151 -1,660 $1.60 -$1.92 3BR -9 $3,252 -$3,272 1,505 -1,537 $2.13 -$2.16 The Loden 2017 246 7 Studio -24 $1,395 -$1,489 548 -622 $2.39 -$2.55 5995 Lincoln Dr 55436 1BR -140 $1,383 -$1,850 671 -876 $2.06 -$2.11 2BR -82 $1,984 -$2,900 1,046 -1,413 $1.90 -$2.05 Edina Gateway 2008 36 2 1BR -21 $1,420 -$1,830 807 -983 $1.76 -$1.86 4910 W 77th St 55435 2BR -15 $1,946 -$2,299 1,330 -1,596 $1.44 -$1.46 White Oaks Apartments 1968 32 0 1BR -16 $1,024 -$1,024 806 -806 $1.27 -$1.27 3901 49th St W 55424 2BR -16 $1,287 -$1,287 1,200 -1,200 $1.07 -$1.07 Cornelia Place 2002 100 2 Studio -1 $1,482 -$1,482 929 -929 $1.60 -$1.60 4025 W 65th St 55435 1BR -19 $1,416 -$1,826 822 -1,092 $1.67 -$1.72 2BR -80 $1,947 -$3,640 1,191 -2,186 $1.63 -$1.67 York Place 2008 114 0 Studio -9 $1,185 -$1,285 541 -559 $2.19 -$2.30 3121 W 69th St 55435 1BR -76 $1,295 -$1,555 619 -941 $1.65 -$2.09 2BR -29 $1,795 -$1,901 1,165 -1,244 $1.53 -$1.54 First building opened November 1st and second building opening mid December. Application fee of $50 per adult and reservation fee of $1,500 ($350 admin/easy move-out, $1,150 securiy deposit). Parking is $200 per month and additional spots are flex/evening parking at $50/month. Pet fee of $500 and $50 per dog and $30 per cat. Adjacent to 50th and France Commercial District. CONTINUED Mkt Fitness center, pool, spa, clubhouse, business center, and study lounge. Near Southdale Center and Galleria Edina. Mkt Mkt Fitness center, clubhouse, roof terrace, balcony, guest apartment, pet washing station, and car wash. Near Southdale Center and Galleria Edina. Fitness center, business center, in unit washer/dryer. Balcony, vaulted ceilings, guest apartment, and car wash. Near Southdale Center and Galleria Edina. TABLE R-7 MARKET RATE GENERAL OCCUPANCY RENTAL PROPERTIES CITY OF EDINA NOVEMBER 2019 Market/BaseUnit Mix Rent Ranges Unit Size Rent per Sq Ft Pool, clubhouse, pet washing station, car chargin station, fitness center, and guest apartment. Near Southdale Center and Galleria Edina. Fitness center, pool, spa, heated underground parking, and bike storage. Near Southdale Center and Galleria Edina. Market Rate Rental Mkt/Aff Mkt Roof terrace, concierge, in unit washer/dryer, and garage parking. Mkt Fitness center, laundry facilities, and balcony. Near 50th and France. Mkt Mkt /Aff Pool, clubhouse, concierge, pet washing station, car charging station, and roof terrace. Near Near Southdale Center and Galleria Edina. Mkt Mkt Fitness center, pool, putting green, theater room, roof terrace. Near Southdale Center and Galleria Edina. RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 118 Year Total Project Name/ Address Built Units Vacant Mkt/Aff Description/Comments Oaks Lincoln Townhomes 1990 39 1 2BR -79 $1,821 -$1,921 1,153 -1,475 $1.30 -$1.58 5200 Lincoln Dr 55436 3 BR -1 $2,300 -$2,464 1,547 -1,971 $1.25 -$1.49 Oaks Lincoln Apartments 1990 204 6 Studio -8 $1,096 -$1,096 402 -505 $2.17 -$2.73 5200 Lincoln Dr 55436 1BR -79 $1,232 -$1,650 766 -1,240 $1.33 -$1.61 2BR -111 $1,428 -$2,203 1,125 -1,517 $1.27 -$1.45 3 BR -6 $1,812 -$1,982 1,519 -1,519 $1.19 -$1.30 Vernon Oaks Apartments 1987 136 0 Studio -2 $1,100 -$1,100 473 -473 $2.33 -$2.33 5400 Vernon Ave S 55436 1BR -34 $1,155 -$1,185 766 -996 $1.19 -$1.51 2BR -100 $1,475 -$1,640 1,087 -1,275 $1.29 -$1.36 5416 W 70th St 1965 10 0 2BR -10 $1,087 -$1,194 982 -1,078 $1.11 -$1.11 5416 W 70th St 55439 Ponds of Edina 1985 65 4 1BR -43 $1,221 -$1,221 826 -826 $1.48 -$1.48 7700 Cahill Rd 55439 2BR -22 $1,381 -$1,381 1,072 -1,072 $1.29 -$1.29 Cahill Court 1965 10 0 2BR -10 $950 -$950 1,050 -1,050 $0.90 -$0.90 5432 W 70th St 55439 Durham 1977 264 6 1BR -96 $1,587 -$1,706 750 -775 $2.12 -$2.20 7201 York Ave 55435 Renovated 2014 2BR -144 $1,568 -$2,357 1,085 -1,250 $1.45 -$1.89 3 BR -24 $3,053 -$3,165 1,480 -1,520 $2.06 -$2.08 Oaks Braemar 1971 115 0 Studio -5 $900 -$900 462 -462 $1.95 -$1.95 7150 Cahill Rd 554319 1BR -18 $1,070 -$1,070 750 -750 $1.43 -$1.43 2BR -86 $1,165 -$1,165 1150 -1150 $1.01 -$1.01 3BR -6 $1,730 -$1,730 1300 -1300 $1.33 -$1.33 Parklawn Manor 1971 44 2 1BR -14 $1,049 -$1,049 790 -790 $1.33 -$1.33 4000 Parklawn Ave 55435 2BR -27 $1,055 -$1,055 1000 -1000 $1.06 -$1.06 3BR -3 $1,524 -$1,524 1150 -1150 $1.33 -$1.33 Parklawn Estates 1968 118 3 1BR -52 $1,225 -$1,265 730 -850 $1.49 -$1.68 4141 Parklawn Ave 55435 2BR -65 $1,450 -$1,525 940 -970 $1.54 -$1.57 3BR -1 $1,726 -$1,726 1,200 -1,200 $1.44 -$1.44 Mkt Fitness center, clubhouse, game room, and car wash. Mkt Fitness center, clubhouse, guest apartment, pet car, and car wash area. Mkt Fitness center, heated underground parking, and clubhouse Mkt Balcony and covered parking. Mkt In unit washer/dryer, fitness center, sauna, spa, and balcony. Rent Ranges Market/Base Unit Mix Unit Size Rent per Sq Ft Market Rate Rental CONTINUED Mkt Business center, car wash facility, entertainment room, outdoor pool, and underground parking. Mkt Balcony and garage Near Centennial Lakes. Mkt Fitness center, clubhouse, pool, and underground parking. Near Centennial Lakes. Mkt Balcony, tuck-under garage; no elevator; common area laundry. Mkt Fitness center, pool, sauna, bike storage, media center, business center, clubhouse, and lounge. MARKET RATE GENERAL OCCUPANCY RENTAL PROPERTIES CITY OF EDINA NOVEMBER 2019 TABLE R-7 (CONTINUED) RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 119 Year Total Project Name/ Address Built Units Vacant Mkt/Aff Description/Comments Edina Villa 1967 36 1 1BR -12 $994 -$994 735 -735 $1.35 -$1.35 4200-4415 Parklawn Ave 55435 2BR -12 $1,324 -$1,324 970 -970 $1.36 -$1.36 3BR -12 $1,394 -$1,394 1,282 -1,282 $1.09 -$1.09 Oak Glen of Edina 1981 38 1 2BR -38 $1,625 -$1,700 1,100 -1,100 $1.48 -$1.55 5515 Oak Glen Rd 55439 (64 Total Units) Cedars of Edina 1977 600 19 Studio -60 $1,052 -$1,188 480 -560 $2.12 -$2.19 7340 Gallagher Dr 55435 Renovated 2014 1BR -426 $1,349 -$1,455 752 -843 $1.73 -$1.79 2BR -114 $1,601 -$1,635 943 -1,032 $1.58 -$1.70 York Plaza 1975 261 13 1BR -91 $1,495 -$1,510 670 -956 $1.58 -$2.23 7230 York Ave 5545 2BR -135 $1,795 -$1,810 1,300 -1,300 $1.38 -$1.39 3BR -35 $2,095 -$2,095 1,600 -1,600 $1.31 -$1.31 Edina Park 1971 80 4 1BR -2 $1,055 -$1,055 700 -700 $1.51 -$1.51 4480 Parklawn Ave 55435 2BR -48 $1,325 -$1,325 1,017 -1,017 $1.30 -$1.30 3BR -30 $1,660 -$1,660 1,200 -1,300 $1.28 -$1.38 Edina Manor Apartments 1969 24 2 1BR -12 $839 -$839 736 -736 $1.14 -$1.14 5400 W 70th St 55439 2BR -12 $1,015 -$1,015 936 -936 $1.08 -$1.08 Valley View Villas 1969 12 n/a n/a -n/a n/a -n/a n/a -n/a n/a -n/a 4415 Valley View Rd 55425 n/a -n/a n/a -n/a n/a -n/a n/a -n/a The Edina Towers 1969 194 10 Studio -14 $1,428 -$1,428 465 -465 $3.07 -$3.07 6400 Barrie Rd 55435 1BR -55 $1,301 -$1,312 670 -850 $1.54 -$1.94 2BR -80 $1,391 -$1,702 940 -1,015 $1.48 -$1.68 3BR -45 $2,015 -$2,752 1,360 -1,850 $1.48 -$1.49 Westchester 1968 24 2 1BR -2 $1,244 -$1,244 675 -675 $1.84 -$1.84 5525 Hansen Rd 55436 2BR -22 $1,504 -$1,504 1,350 -1,350 $1.11 -$1.11 Normandy House Apartments 1968 78 0 1BR -39 $939 -$940 837 -837 $1.12 -$1.12 4545 Valley View Rd 55424 2BR -39 $1,089 -$1,089 912 -912 $1.19 -$1.19 Mkt Fitness center, garage parking, and balcony. Mkt Near MN Hwy 62; mansard roof; off-street parking; Mkt Business center, clubhouse, fitness center, and car wash area. Near Southdale Center and Galleria Edina. Mkt Fitness center and balcony. Mkt Pool and balcony. Near Centennial Lakes. Mkt /Aff Fitness center, playground and balcony. Mkt Fitness center, spa, pool, clubhouse, lounge, business center, concierge, car wash area, and in unit washer/dryer. Near Southdale Center, Galleria Edina, and Centennial Lakes. Mkt Fitness center, sauna, pool, business center, clubhouse, car washm gameroom, and theater room. Near Southdale Center and Galleria Edina. Mkt Clubhouse, pool, and balcony. CONTINUED Market Rate Rental Mkt Pool, clubhouse, multi use room, and underground parking. Rent Ranges Unit Size Rent per Sq Ft TABLE R-7 (CONTINUED) Market/Base Unit Mix MARKET RATE GENERAL OCCUPANCY RENTAL PROPERTIES CITY OF EDINA NOVEMBER 2019 RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 120 Year Total Project Name/ Address Built Units Vacant Mkt/Aff Description/Comments Briar Cliff 1968 22 0 Studio -4 $785 -$785 700 -700 $1.12 -$1.12 4440 Parklawn Ave 55435 1BR -8 $925 -$994 836 -892 $1.11 -$1.11 2BR -10 $1,274 -$1,313 1,100 -1,145 $1.15 -$1.16 Astor Place 1968 44 4 Studio -2 $1,105 -$1,144 609 -609 $1.81 -$1.88 6455 York Ave S 55435 1BR -30 $1,259 -$1,549 969 -969 $1.30 -$1.60 2BR -12 $1,629 -$1,999 1,261 -1,261 $1.29 -$1.59 Willow Greens Apartments 1968 22 1 Studio -2 $800 -$800 600 -600 $1.33 -$1.33 4350-4380 Parklawn Ave 55435 2BR -16 $1,349 -$1,349 1,120 -1,120 $1.20 -$1.20 3BR -4 $1,974 -$1,974 1,515 -1,515 $1.30 -$1.30 Regency Apartments 1967 18 0 1BR -6 $975 -$975 827 -827 $1.18 -$1.18 4201 Parklawn Ave 55435 2BR -12 $957 -$1,074 914 -1,134 $0.95 -$1.05 Parklawn Apartments 1967 118 1 1BR -10 $994 -$994 788 -788 $1.26 -$1.26 4251 Parklawn Ave 55435 2BR -13 $1,094 -$1,294 1,012 -1,072 $1.08 -$1.21 Chalet Apartments 1967 12 0 1BR -12 $1,050 -$1,050 750 -750 $1.40 -$1.40 4415 Parklawn Ct 55435 Interlachen Manor 1967 17 0 1BR -1 $1,020 -$1,020 780 -780 $1.31 -$1.31 5220 Interlachen Blvd 55436 2BR -16 $1,005 -$1,425 940 -1,335 $1.07 -$1.07 Edina Highland Village 1967 165 3 1BR -90 $1,285 -$1,385 798 -798 $1.61 -$1.74 5250 Villa Way 55436 2BR -62 $1,515 -$1,615 1,112 -1,112 $1.36 -$1.45 3BR -13 $2,430 -$2,430 1,800 -1,800 $1.35 -$1.35 Parklawn Court 1965 24 0 1BR -10 $975 -$975 708 -708 $1.38 -$1.38 4456 Parklawn Ct 55435 2BR -14 $1,224 -$1,294 894 -1,134 $1.14 -$1.37 4435 Parklawn Ct 1965 40 0 1BR -20 $950 -$950 762 -762 $1.25 -$1.25 4435 Parklawn Ct 55435 2BR -20 $1,174 -$1,174 900 -900 $1.30 -$1.30 Mkt Garage parking. Mkt Fitness center, indoor and outdoor pool, club rooms, sauna, bike storage, underground parking, vegetable and flower gardens, and business center. Mkt Clubhouse, multi use room, and balcony. Near Centennial Lakes. Mkt Near Centennial Lakes. CONTINUED Fitness center, pool, spa, bike storage, clubhouse, business center, lounge, and multi use room. Mkt Pool, car wash area, and guest apartment. Mkt Balcony. Mkt Near MN Hwy 100 and I-494. Mkt Covered parking. Mkt Balcony. Market Rate Rental TABLE R-7 (CONTINUED) MARKET RATE GENERAL OCCUPANCY RENTAL PROPERTIES Market/Base Unit Mix Rent Ranges Unit Size Rent per Sq Ft CITY OF EDINA NOVEMBER 2019 Mkt RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 121 Year Total Project Name/ Address Built Units Vacant Mkt/Aff Description/Comments Cottages of Edina 1965 80 1 1BR -24 $1,015 -$1,015 900 -900 $1.13 -$1.13 5180 Lincoln Dr 55436 2BR -24 $1,215 -$1,215 1,200 -1,200 $1.01 -$1.01 3BR -32 $1,500 -$1,500 2,000 -2,000 $0.75 -$0.75 York Villa 1965 23 0 1BR -9 $990 -$990 800 -800 $1.24 -$1.24 6304 York Ave S 55435 2BR -14 $1,148 -$1,148 1,050 -1,050 $1.09 -$1.09 6300 York 1964 22 1 2BR -22 $1,029 -$1,224 1,065 -1,075 $0.97 -$1.14 6300 York Ave S 55435 Oaklawn Estates 1963 14 1 1BR -14 $1,039 -$1,044 700 -700 $1.48 -$1.49 4401 Valley View Rd 55424 Interlachen Court 1963 61 3 1BR -16 $1,245 -$1,295 737 -737 $1.69 -$1.76 5300 Vernon Ave S 55436 2BR -45 $1,500 -$2,200 910 -1,172 $1.65 -$1.88 Hazelton Apartments 1962 16 0 1BR -2 $1,094 -$1,094 862 -862 $1.27 -$1.27 4000 Hazelton Rd 55435 2BR -14 $1,119 -$1,119 950 -950 $1.18 -$1.18 4301 Valley View Rd 1962 8 0 1BR -1 $950 -$950 650 -650 $1.46 -$1.46 4301 Valley View Rd 55424 2BR -7 $1,200 -$1,250 850 -850 $1.41 -$1.47 Heritage Court 1961 40 2 1BR -20 $994 -$994 775 -775 $1.28 $1.28 3105-3117 Heritage Dr 55435 2BR -20 $1,153 -$1,153 833 -833 $1.38 $1.38 Fountain Manor 1961 5 1 2BR -5 $1,095 -$1,095 900 -900 $1.22 -$1.22 4001 Mavelle Dr 55435 4000 Mavelle Dr 55435 1961 5 1 2BR -1 $1,250 -$1,250 950 -950 $1.32 -$1.32 4000 Mavelle Dr 55435 5330 France Ave S 1949 12 1 Studio -3 $740 -$875 400 -400 $1.85 -$2.19 5330 France Ave S 55410 1BR -7 $850 -$995 650 -650 $1.31 $1.53 2BR -2 $1,165 -$1,250 750 -850 $1.47 $1.55 3908 W 54th St 1949 5 1 2BR -5 $975 -$1,250 750 -750 $1.30 -$1.67 3908 W 54th St 55424 Heritage Drive Apartments 1962 24 0 1BR -12 $725 -$725 715 -715 $1.01 -$1.01 3201 Heritage Drive 55435 2BR -12 $925 -$925 900 -900 $1.03 -$1.03 Total/Average 4,654 112 n/a: Not Applicable Market Rate Rental TABLE R-7 (CONTINUED) MARKET RATE GENERAL OCCUPANCY RENTAL PROPERTIES CITY OF EDINA NOVEMBER 2019 Market/Base Unit Mix Rent Ranges Unit Size Rent per Sq Ft Covered parking available.Mkt Mkt Mkt Hardwood floors. Near Southdale Center and Galleria Edina. Mkt Near MN Hwy 62; garage parking available; walk- in closets; common laundry Mkt Pool. Near Southdale Center and Galleria Edina. Mkt Underground parking.Mkt Clubhouse and balcony. Mkt Lounge and heated underground parking. Near Southdale Center and Galleria Edina. Mkt Clubhouse and fitness center.Mkt Sources Maxfield Research & Consulting, LLC, Apartments.com, Local News Sources, and City of Edina. 2.4% Near Southdale Center and Galleria Edina. Mkt Renovated (new flooring, stainless steel appliances, and fire place). Near Southdale Center and Galleria Edina. Mkt Surface parking and near Southdale Center. Mkt Near 50th and France. Hardwood Floors and bike racks. Pet rent is $20 per month with a $200 deposit. Near 50th and France. RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 122 Year Total Project Name/ Address Built Units Vacant Mkt/Aff Description/Comments Nolan Mains 2019 10 10 1BR -8 693 -719 ----- 3945 Market St 55424 (100 Total Units)2BR -2 1184 -1185 ----- (In initial lease Up) Aria Edina 2018 10 0 Studio 8 $1,050 -$1,050 487 -524 $2.00 -$2.16 3200 Southdale Cir 55435 (184 Total Units)Alcove 2 $1,125 -$1,125 693 -693 $1.62 -$1.62 (In initial lease Up) Galleria Flats 1961 11 0 2BR -11 $1,250 -$1,600 $980 -$980 $1.28 -$1.63 7008 Sandell Ave 55435 Edina Lodge 1962 6 0 1BR -6 $350 -$350 ---------- 6312 & 6314 France Ave S 55410 ----- Interlodge 1964 6 1 1BR -6 $350 -$350 ---------- 5141 William Ave 55436 Total/Average 43 11 25.6% Yorkdale Townhomes 1972 90 0 1BR -10 786 -786 -----SUB Community room, computer lab, garages for 3280 W 76th St 55435 2BR -56 963 -963 3BR -20 1,356 -1,356 4BR -4 1,505 -1,505 Oak Glen of Edina 1981 26 0 1BR -4 850 -850 -----Fitness center, playground and balcony 5515 Oak Glen Rd 55439 (64 Total Units)3BR -22 1,150 -1,150 ----- Total/Average 116 0 0.0% 30% of AMI 30% of AMI Located on France Ave near Southdale Center. Of the 11 units, 6 are affordable to households with incomes less than or equal to 80% of AMI and 5 are affordable to households with incomes less than or equal to 60% of AMI. TABLE R-8 SHALLOW SUBSIDY AND DEEP-SUBSIDY GENERAL OCCUPANCY RENTAL PROPERTIES CITY OF EDINA NOVEMBER 2019 Aff Unit SizeUnit Mix Rent Ranges Rent per Sq Ft 50% and 60% AMI Market/Base Mkt/SUB 30% of AGI Sources: Maxfield Research & Consulting, LLC, City of Edina. Shallow Subsidy First building opened November 1st and second building opening mid December. All eight one bedroom units are currently available and the two bedroom units (two total) will be available January 1. Directly adjacent to the 50th and France Commercial District. Pool, clubhouse, concierge, pet washing station, car charging station, and roof terrace. Near Southdale and Galleria Shopping Centers. Mkt/Aff Mkt/Aff Aff Deep Subsidy Aff Located in the Grandview neighborhood. RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING 123 Selected Representative Rental Properties in Edina (Market Rate) Nolan Mains The Loden Normandy House Ponds of Edina 71 France Oaks Braemar RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING 124 4000 Mavelle Drive Hazelton Onyx Edina Heritage Court One Southdale Place Le Chataignier RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING 125 Natural Occurring Affordable Housing (i.e. Unsubsidized Affordable) Although affordable housing is typically associated with income restrictions, there are other housing units in communities that indirectly provide affordable housing. Housing units that were not developed or designated with income guidelines (i.e. assisted) yet are more afforda- ble than other units in a community are considered “naturally-occurring” or “unsubsidized af- fordable” units. This rental supply is available through the private market, versus assisted hous- ing programs through various government agencies. Property values on these units are lower based on a combination of factors, such as: age of structure/housing stock, location, condition, size, functionally obsolete, school district, etc. According to the Joint Center for Housing Studies of Harvard University, the privately unsubsi- dized housing stock supplies three times as many low-cost affordable units than assisted pro- jects nationwide. Unlike assisted rental developments, most unsubsidized affordable units are scattered across small properties (one to four-unit structures) or in older multifamily structures. Many of these older developments are vulnerable to redevelopment and upgrades due to their age, modest rents and deferred maintenance. Because many of these properties have rents that are affordable, project-based and private housing markets cannot be easily separated. Some households may income-qualify for both market rate and project-based affordable housing, although the gap is widening between mar- ket rate and affordable properties as rents in the private market continue to rise. Therefore, the naturally-occurring affordable housing stock is quantified to identify the proportion of units with rents that may be affordable to low and/or moderate-income renters. The analysis does not identify the number of units that are rented to households with incomes at those afforda- bility levels as any tenant that financially qualifies may be able to rent at the property. Table R-9 illustrates monthly rents by unit type and household size as they relate to affordabil- ity. Tables R-10 to R-12 present a breakdown of all market rate general-occupancy rental prop- erties by household size and area median income (AMI) based on year built. Table R-13 sum- marizes property data from Tables R-10 to R-12 based on unit type and affordability. Note that data for two-bedroom units at Interlachen Manor and four-bedroom penthouse-units at Nolan Mains is omitted due to unit mix rent breakdowns being unavailable. • Among the 4,537 market rate units inventoried by unit mix and monthly rents, an estimated 23% of the units are affordable to householders with incomes at 50% or 60% of AMI. An es- timated 44% of units are affordable to households with incomes at 80% AMI while 26.6% of units are affordable to households with incomes at 100% AMI and 6.5% of units are afforda- ble to households with incomes at 120% of AMI. • For properties built after 2000, all are affordable to householders with incomes of 80% or higher AMI. As shown on the graph that follows, 319 units (22.6%) are affordable to house- holds with incomes at 80% AMI while 821 units (58.3%) are affordable to households with RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING 126 incomes at 100% AMI and 269 units (19.1%) are affordable to households with incomes at 120% AMI. • For properties built between 1980 and 1999, 167 units are affordable to households with incomes at 60% of AMI (28.9%), 281 units (48.6%) are affordable to households with in- comes at 80% AMI while 130 units (22.5%) are affordable to households with incomes at 100% AMI. • For properties built prior to 1980, 529 (20.8%) units are affordable to households with in- comes at 50% of AMI, 346 (13.6%) units are affordable to households with incomes at 60% of AMI, 1,396 (54.8%) units are affordable to households with incomes at 80% of AMI, 255 (10%) units are affordable to households with incomes at 100% of AMI, and 24 (1.0%) units are affordable to households with incomes at 120% of AMI. A number of these properties have had some remodeling of units and/or common areas. Some properties have also re- modeled their building exteriors. • In total, 6.4% of studio units are affordable to households with incomes at 50% or 60% of AMI. Of all one-bedroom units inventoried, 13.9% are affordable to households with in- comes at 50% or 60% of AMI. Of all two-bedroom units, 34.5% are affordable to house- holds with incomes at 50% or 60% of AMI and of all three-bedroom units, 23% are afforda- ble to households with incomes at 60% or less of AMI. • Of all market rate units inventoried, no units are affordable to households with incomes at 30% or less or AMI. • According to data compiled by the Census Bureau, 55% of renter households in Edina pay less than 30% of their income for rent. Of households that earn $50,000 or more annually, 87% pay less than 30% of their income for rent while the remainder (13%) pay more than 30%. RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 127 Unit Type 1 Min Max Min. Max.Min. Max.Min. Max.Min. Max.Min. Max.Min. Max. Studio 1 1 $525 -$525 $875 -$875 $1,050 -$1,050 $1,321 -$1,321 $1,750 -$1,750 $2,100 -$2,100 1BR 1 2 $525 -$600 $875 -$1,000 $1,050 -$1,200 $1,321 -$1,510 $1,750 -$2,000 $2,100 -$2,400 2BR 2 4 $600 -$750 $1,000 -$1,250 $1,200 -$1,500 $1,510 -$1,888 $2,000 -$2,500 $2,400 -$3,000 3BR 3 6 $675 -$870 $1,125 -$1,450 $1,450 -$1,740 $1,699 -$2,190 $2,250 -$2,900 $2,700 -$3,480 4BR 4 8 $750 -$870 $1,250 -$1,650 $1,500 -$1,980 $1,888 -$2,493 $2,900 -$2,900 $3,480 -$3,480 Sources: HUD, Novogradac, Maxfield Research and Consulting, LLC HENNEPIN COUNTY - 2019 TABLE R-9 1 One-bedroom plus den and two-bedroom plus den units are classified as 1BR and 2BR units, respectively. To be classified as a bedroom, a den must have a window and closet. MAXIMUM RENT BASED ON HOUSEHOLD SIZE AND AREA MEDIAN INCOME Note: 4-person Hennepin County AMI is $100,000 (2019). Lowest possible maximum rent utilized if between two rent maximums. HHD Size Maximum Rent Based on Household Size (@30% of Income) 30%60%80%100%120%50% RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 128 Total Unit Type/Project Name Units Min Max 30%50%60%80%100%120% Studio/Alcove Nolan Mains 1 ---------------------- Aria Edina 19 $1,495 -$1,625 $59,800 -$65,000 --------3 -- 71 France 63 $1,410 -$1,435 $56,400 -$57,400 ------63 ---- One Southdale Place 18 $1,375 -$1,484 $55,000 -$59,360 ------18 ---- Onyx Edina 10 $1,319 -$2,149 $52,760 -$85,960 ------5 5 -- The Loden 24 $1,396 -$1,454 $55,840 -$58,160 --------24 -- Cornelia Place 1 $1,486 -$1,486 $59,440 -$59,440 --------1 -- Total/ Average 136 0 0 0 86 33 0 One-Bedroom 30%50%60%80%100%120% Nolan Mains 32 $1,585 -$1,585 $63,400 -$63,400 --------20 -- Aria Edina 69 $1,595 -$2,005 $63,800 -$80,200 --------65 4 71 France 58 $1,395 -$1,935 $55,800 -$77,400 ------15 41 2 One Southdale Place 134 $1,450 -$1,950 $58,000 -$78,000 ------3 121 10 Onyx Edina 135 $1,333 -$2,158 $53,320 -$86,320 ------17 117 1 The Loden 140 $1,305 -$1,854 $52,200 -$74,160 ------62 31 47 Edina Gateway 21 $1,420 -$1,830 $56,800 -$73,200 ------12 9 -- Cornelia Place 19 $1,420 -$1,831 $56,800 -$73,240 ------6 13 -- York Place 76 $1,295 $1,555 $51,800 -$62,200 ------67 9 -- Total/Average 684 0 0 0 182 426 64 Two-Bedroom 30%50%60%80%100%120% Nolan Mains*34 --------------------30 Aria Edina 84 $2,341 -$4,225 $93,640 -$169,000 --------31 53 71 France 58 $1,846 -$2,425 $73,840 -$97,000 --------29 3 One Southdale Place 79 $2,092 -$4,354 $83,680 -$174,160 --------58 21 Onyx Edina 86 $1,842 -$3,180 $73,680 -$127,200 --------80 6 The Loden 82 $1,928 -$3,092 $77,120 -$123,680 --------54 26 Edina Gateway 15 $1,946 -$2,299 $77,840 -$91,960 --------15 -- Cornelia Place 80 $1,213 -$2,186 $48,520 -$87,440 --------77 3 York Place 29 $1,851 -$1,927 $74,040 -$77,080 ------11 18 -- Total/ Average 547 0 0 0 11 362 142 Three Bedroom 30%50%60%80%100%120% Nolan Mains**19 $5,724 -$5,724 $228,960 -$228,960 ----------19 Aria Edina 12 $3,545 -$3,920 $141,800 -$156,800 ----------12 71 France 62 $1,834 -$3,043 $73,360 -$121,720 ------40 --22 One Southdale Place 1 $4,051 -$4,051 $162,040 -$162,040 ----------1 Onyx Edina 9 $3,252 -$3,272 $130,080 -$130,880 ----------9 Total/ Average 103 0 0 0 40 0 63 Four Bedroom 30%50%60%80%100%120% Nolan Mains***NA ---------------------- Total/ Average 0 0 0 0 0 0 0 NA: Not Assessed 1 Based on a 30% allocation of income to housing for general-occupancy. Senior housing is excluded from the tables. Source: Maxfield Research & Consulting, LLC TABLE R-10 MULTIFAMILY MARKET RATE RENTAL DEVELOPMENTS NATURALLY OCURRING RENTAL HOUSING CITY OF EDINA NOVEMBER 2019 MARKET RATE RENTAL PROPERTIES (CONSTRUCTED 2000 OR LATER) Rent Range Min. Income Units that are Market Rate Afford. by AMI2 *Includes regular and penthouse two-bedroom units. Needed to Afford1 **Includes regular and penthouse three-bedroom units. ***All four bedroom units are penthouses. Penthouse data is ommitted as unit mix rent breakdown unavailable. 2 Market rate housing that could be classified as "unsubsidized affordable" units based on the monthly rents and adjusted for household size. RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 129 Total Unit Type/Project Name Units Min Max 30%50%60%80%100%120% Studio/Alcove Oaks Lincoln Apartments 8 $1,071 -$1,071 $42,840 -$42,840 ------8 ---- Vernon Oaks Apartments 2 $1,100 -$1,100 $44,000 -$44,000 ------2 ---- Total/ Average 10 0 0 0 10 0 0 One-Bedroom 30%50%60%80%100%120% Oaks Lincoln Apartments 79 $1,232 -$1,729 $49,280 -$69,160 ------78 1 -- Vernon Oaks Apartments 34 $1,155 -$1,185 $46,200 -$47,400 ----34 ------ Ponds of Edina 43 $1,221 -$1,381 $48,840 -$55,240 ------43 ---- Durham 96 $1,587 -$1,706 $63,480 -$68,240 --------96 -- Total/Average 252 0 0 34 121 97 0 Two-Bedroom 30%50%60%80%100%120% Oaks Lincoln Townhomes 14 $1,821 -$1,921 $72,840 -$76,840 ------6 8 -- Oaks Lincoln Apartments 111 $1,559 -$1,699 $62,360 -$67,960 ------111 ---- Vernon Oaks Apartments 100 $1,475 -$1,640 $59,000 -$65,600 ----73 27 ---- Ponds of Edina 22 $1,381 -$1,381 $55,240 -$55,240 ----22 ------ Oak Glen of Edina 38 $1,324 -$1,324 $52,960 -$52,960 ----38 ------ Total/ Average 285 0 0 133 144 8 0 Three Bedroom 30%50%60%80%100%120% Oaks Lincoln Townhomes 25 $2,304 -$2,468 $92,160 -$98,720 --------25 -- Oaks Lincoln Apartments 6 $1,798 -$1,798 $71,920 -$71,920 ------6 ---- Total/ Average 31 0 0 0 6 25 0 1 Based on a 30% allocation of income to housing for general-occupancy. Senior housing is excluded from the calculation. Source: Maxfield Research & Consulting, LLC NOVEMBER 2019 Min. Income Needed to Afford1 Rent Range Units that are Market Rate Afford. by AMI2 TABLE R-11 MULTIFAMILY MARKET RATE RENTAL DEVELOPMENTS NATURALLY OCURRING RENTAL HOUSING CITY OF EDINA RENTAL PROPERTIES CONSTRUCTED FROM 1980 THROUGH 1999 2 Market rate housing that has rents that could be classified as "unsubsidized affordable" units based on the monthly rents and adjusted for household RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 130 Total Unit Type/Project Name Units Min Max 30%50%60%80%100%120% Studio/Alcove Oaks Braemar 5 $900 -$900 $36,000 -$36,000 ----5 ------ Cedars of Edina 60 $1,052 -$1,188 $42,080 -$47,520 ------60 ---- The Edina Towers 14 $1,431 -$1,431 $57,240 -$57,240 ------14 ---- Briar Cliff 4 $785 -$785 $31,400 -$31,400 --4 -------- Astor Place 2 $1,105 -$1,105 $44,200 -$44,200 ------2 ---- Willow Greens Apartments 2 $800 -$1,144 $32,000 -$45,760 --1 1 ------ 5330 France Ave S 3 $740 -$875 $29,600 $35,000 --3 -------- Total/ Average 90 0 8 6 76 0 0 One-Bedroom 30%50%60%80%100%120% White Oaks Apartments 16 $1,024 -$1,024 $40,960 -$40,960 ----16 ------ Durham 96 $1,587 -$1,706 $63,480 -$68,240 --------96 -- Oaks Braemar 18 $1,070 -$1,070 $42,800 -$42,800 ------18 ---- Parklawn Manor 14 $1,049 -$1,049 $41,960 -$41,960 ----14 ------ Parklawn Estates 52 $1,225 -$1,265 $49,000 -$50,600 ------52 ---- Edina Villa 12 $994 -$994 $39,760 -$39,760 --12 -------- Cedars of Edina 426 $1,349 -$1,455 $53,960 -$58,200 ------426 ---- York Plaza 91 $1,495 -$1,510 $59,800 -$60,400 ------91 ---- Edina Park 2 $1,055 -$1,055 $42,200 -$42,200 ----2 ------ Edina Manor Apartments 12 $839 -$839 $33,560 -$33,560 --12 -------- The Edina Towers 55 $1,303 -$1,418 $52,120 -$56,720 ------55 ---- Westchester 2 $1,244 -$1,244 $49,760 -$49,760 ------2 ---- Normandy House Apartments 39 $939 -$940 $37,560 -$37,600 --39 -------- Briar Cliff 8 $925 -$994 $37,000 -$39,760 --8 -------- Astor Place 30 $1,379 -$1,379 $55,160 -$55,160 ------30 ---- Regency Apartments 6 $975 -$975 $39,000 -$39,000 --6 -------- Parklawn Apartments 10 $994 -$994 $39,760 -$39,760 --10 -------- Chalet Apartments 12 $1,050 -$1,050 $42,000 -$42,000 ----12 ------ Interlachen Manor 1 $1,020 -$1,020 $40,800 -$40,800 ----1 ------ Edina Highland Village 90 $1,285 -$1,385 $51,400 -$55,400 ------90 ---- Parklawn Ct 10 $975 -$975 $39,000 -$39,000 --10 -------- 4435 Parklawn Ct 20 $974 -$974 $38,960 -$38,960 --20 -------- Cottages of Edina 24 $1,015 -$1,015 $40,600 -$40,600 ----24 ------ York Villa 9 $990 -$990 $39,600 -$39,600 --9 -------- Oaklawn Estates 14 $1,039 -$1,044 $41,560 -$41,760 ----14 ------ Interlachen Ct 16 $1,327 -$1,327 $53,080 -$53,080 ------16 ---- Hazelton Apartments 2 $1,094 -$1,094 $43,760 -$43,760 ----2 ------ 4301 Valley View Rd 1 $700 -$700 $28,000 -$28,000 --1 -------- Heritage Ct 20 $994 -$994 $39,760 -$39,760 --20 -------- 5330 France Ave S 7 $740 -$875 $29,600 -$35,000 --7 -------- Heritage Drive Apartments 12 $725 -$725 $29,000 -$29,000 --12 -------- Total/Average 1,127 0 166 85 780 96 0 TABLE R-12 MULTIFAMILY MARKET RATE RENTAL DEVELOPMENTS NATURALLY OCURRING RENTAL HOUSING CITY OF EDINA RENTAL PROPERTIES CONSTRUCTED PRIOR TO 1980 NOVEMBER 2019 Min. Income Needed to Afford1 Rent Range Units that are Market Rate Afford. by AMI2 Continued RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 131 Total Unit Type/Project Name Units Min Max 30%50%60%80%100%120% Two-Bedroom 30%50%60%80%100%120% White Oaks Apartments 16 $1,287 -$1,287 $51,480 -$51,480 ----16 ------ Cahill Ct 10 $950 -$950 $38,000 -$38,000 --10 -------- Durham 144 $1,568 -$2,357 $62,720 -$94,280 ------27 117 -- Oaks Braemar 86 $1,165 -$1,165 $46,600 -$46,600 --86 -------- Parklawn Manor 27 $1,055 -$1,055 $42,200 -$42,200 --27 -------- Parklawn Estates 55 $1,450 -$1,525 $58,000 -$61,000 ----25 30 ---- Edina Villa 12 $1,324 -$1,324 $52,960 -$52,960 ----12 ------ Cedars of Edina 114 $1,601 -$1,635 $64,040 -$65,400 ------114 ---- York Plaza 135 $1,795 -$1,810 $71,800 -$72,400 ------135 ---- Edina Park 48 $1,325 -$1,325 $53,000 -$53,000 ----48 ------ Edina Manor Apartments 12 $1,015 -$1,015 $40,600 -$40,600 --12 -------- The Edina Towers 80 $1,394 -$1,706 $55,760 -$68,240 ----45 35 ---- Westchester 22 $1,504 -$1,504 $60,160 -$60,160 ------22 ---- Normandy House Apartments 39 $1,089 -$1,089 $43,560 -$43,560 --39 -------- Briar Cliff 10 $1,274 -$1,313 $50,960 -$52,520 ----10 ------ Astor Place 12 $1,849 -$1,849 $73,960 -$73,960 ------12 ---- Willow Greens Apartments 16 $1,349 -$1,349 $53,960 -$53,960 ----16 ------ Regency Apartments 12 $957 -$1,074 $38,280 -$42,960 --12 -------- Parklawn Apartments 13 $1,094 -$1,294 $43,760 -$51,760 --10 3 ------ Interlachen Manor*NA $1,005 -$1,425 $40,200 -$57,000 NA NA NA NA NA NA Edina Highland Village 62 $1,515 -$1,515 $60,600 -$60,600 ------62 ---- Parklawn Court 14 $1,224 -$1,294 $48,960 $51,760 ----14 ------ 4435 Parklawn Ct 20 $1,174 -$1,174 $46,960 $46,960 --20 -------- Cottages of Edina 24 $1,215 -$1,215 $48,600 $48,600 --24 -------- York Villa 14 $1,148 -$1,148 $45,920 $45,920 --14 -------- 6300 York 22 $1,029 -$1,224 $41,160 -$48,960 --22 -------- Interlachen Court 42 $1,759 -$2,281 $70,360 $91,240 ------38 4 -- Hazelton Apartments 14 $1,119 -$1,119 $44,760 $44,760 --14 -------- 4301 Valley View Rd 7 $966 -$966 $38,640 $38,640 --7 -------- Heritage Ct 20 $1,153 -$1,153 $46,120 $46,120 --20 -------- Fountain Manor 5 $1,095 -$1,095 $43,800 $43,800 --5 -------- 4000 Mavelle Dr 5 $1,250 -$1,250 $50,000 $50,000 --5 -------- 5330 France Ave S 2 $1,165 -$1,250 $46,600 -$50,000 --2 -------- 3908 W 54th St 2 $975 -$1,250 $39,000 $50,000 --2 -------- Heritage Drive Apartments 12 $925 -$925 $37,000 -$37,000 --12 -------- Total/ Average 1,128 0 343 189 475 121 0 Three Bedroom 30%50%60%80%100%120% Durham 24 $3,053 -$3,165 $122,120 -$126,600 ----------24 Oaks Braemar 6 $1,730 -$1,730 $69,200 -$69,200 ------6 ---- Parklawn Manor 3 $1,524 -$1,524 $60,960 -$60,960 ----3 ------ Parklawn Estates 1 $1,726 -$1,726 $69,040 -$69,040 ----1 ------ Edina Vila 12 $1,394 -$1,394 $55,760 -$55,760 --12 -------- York Plaza 35 $2,095 -$2,095 $83,800 -$83,800 ------35 ---- Edina Park 30 $1,660 -$1,660 $66,400 -$66,400 ----30 ------ The Edina Towers 45 $2,015 -$2,752 $80,600 -$110,080 ------20 25 -- Willow Greens Apartments 4 $1,974 -$1,974 $78,960 $78,960 ------4 ---- Edina Highland Village 13 $2,430 -$2,430 $97,200 -$97,200 --------13 -- Cottages of Edina 32 $1,500 -$1,500 $60,000 -$60,000 ----32 ------ Total/ Average 205 0 12 66 65 38 24 NA: Not Assessed 1 Based on a 30% allocation of income to housing for general-occupancy. Senior housing is excluded from the calculation. 2 Market rate housing that has rents that could be classified as "unsubsidized affordable" units based on the monthly rents and adjusted for *: Two bedroom data is ommitted as unit mix rent breakdown unavailable. NATURALLY OCURRING RENTAL HOUSING Source: Maxfield Research & Consulting, LLC MULTIFAMILY MARKET RATE RENTAL DEVELOPMENTS NOVEMBER 2019 Rent Range Min. Income Units that are Market Rate Afford. by AMI2 RENTAL PROPERTIES CONSTRUCTED PRIOR TO 1980 CITY OF EDINA Needed to Afford1 TABLE R-12 (CONTINUED) RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 132 Unit Type 30%50%60%80%100%120% STUDIO 0 0 0 86 33 0 1 BR 0 0 0 182 426 64 2 BR 0 0 0 11 362 142 3 BR 0 0 0 40 0 63 4 BR ------------ Subtotal 0 0 0 319 821 269 Pct. Of Total 0.00%0.00%0.00%22.64%58.27%19.09% Pct. Of Affordability Category STUDIO ------27.0%4.0%0.0% 1 BR ------57.1%51.9%23.8% 2 BR ------3.4%44.1%52.8% 3 BR ------12.5%0.0%23.4% 4 BR ------------ Source: Maxfield Research & Consulting, LLC Market Rate Affordability by AMI PROPERTIES BUILT 2000 OR LATER TABLE R-13 MULTIFAMILY MARKET RATE RENTAL DEVELOPMENTS NATURAL OCCURRING SUMMARY CITY OF EDINA NOVEMBER 2019 RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 133 Unit Type 30%50%60%80%100%120% STUDIO 0 0 0 10 0 0 1 BR 0 0 34 121 97 0 2 BR 0 0 133 144 8 0 3 BR 0 0 0 6 25 0 4 BR ------------ Subtotal 0 0 167 281 130 0 Pct. Of Total 0.00%0.00%28.89%48.62%22.49%0.00% Pct. Of Affordability Category STUDIO ----0.0%3.6%0.0%-- 1 BR ----20.4%43.1%74.6%-- 2 BR ----79.6%51.2%6.2%-- 3 BR ----0.0%2.1%19.2%-- 4 BR ------------ Source: Maxfield Research & Consulting, LLC Market Rate Affordability by AMI PROPERTIES BUILT 1980 THROUGH 1999 TABLE R-14 MULTIFAMILY MARKET RATE RENTAL DEVELOPMENTS NATURAL OCCURRING SUMMARY CITY OF EDINA NOVEMBER 2019 RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 134 Unit Type 30%50%60%80%100%120% STUDIO 0 8 6 76 0 0 1 BR 0 166 85 780 96 0 2 BR 0 343 189 475 121 0 3 BR 0 12 66 65 38 24 4 BR ------------ Subtotal 0 529 346 1,396 255 24 Pct. Of Total 0.00%20.75%13.57%54.75%10.00%0.94% Pct. Of Affordability Category STUDIO --1.5%1.7%5.4%0.0%0.0% 1 BR --31.4%24.6%55.9%37.6%0.0% 2 BR --64.8%54.6%34.0%47.5%0.0% 3 BR --2.3%19.1%4.7%14.9%100.0% 4 BR ------------ Source: Maxfield Research & Consulting, LLC Market Rate Affordability by AMI PROPERTIES BUILT PRIOR TO 1980 TABLE R-15 MULTIFAMILY MARKET RATE RENTAL DEVELOPMENTS NATURAL OCCURRING SUMMARY CITY OF EDINA NOVEMBER 2019 RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 135 City of Edina Affordable Housing Sites Source: City of Edina RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 136 Multifamily Affordable Housing Policy In 2015, Edina passed an affordable housing policy for new multifamily rental developments over twenty units. The policy specifies that either 10% of a new multifamily rental develop- ment’s units should be affordable to households earning 50% or less of median household in- come or 20% of its units should be affordable to households earning 60% or less of median in- come. The income limits are determined by the Multifamily Tax Subsidy Income limits (MTSP). Developers have the option of buying out of these affordable housing requirements by paying $100,000 per affordable unit that was otherwise required to be built by the development. The City, however, makes the final determination and can decide whether to require new multifam- ily developments to meet the affordable housing requirements. Rental Licensing Ordinance Edina recently passed a rental ordinance, which became effective November 4, 2019. The ordi- nance helps protect tenants and more closely aligns the City with ordinances of neighboring cit- ies. It is designed to ensure all rental properties meet local property maintenance and fire safety codes. The ordinance requires that all landlords or owners obtain a license for their rental units through the City and pay the applicable fee. The City has shifted from a reactive ap- proach of conducting inspections only with documented complaints to a more proactive ap- proach of conducting regular inspections. As a result of the ordinance’s recent enaction, only a small number of single-family rentals and no apartment properties have been registered to date. The intention of the rental ordinance is to inspect single family rentals every other year and all multifamily building common areas as well as a third of their units annually. Inspecting one-third of all units in the City annually will ensure that the full inventory is inspected every three years. In addition to regular inspections, building inspectors also respond to complaints concerning rental properties and check properties as needed. The focus of the rental inspection program is to maintain the quality and stability of rental dwelling units to preserve the value of land and buildings in Edina. Rental housing conditions that adversely affect or are likely to adversely af- fect the life, safety, general welfare and health of renters can be corrected and prevented by enforcing minimum maintenance and code standards. RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 137 Housing Choice Vouchers Metro HRA’s Housing Choice Vouchers program supports families in participating cities in the Twin Cities Metro secure housing vouchers. The program currently assists 98 households in Edina. Households assisted through the program pay 30% of their adjusted gross household in- come for rent and the remainder of the rental amount is paid for with funds allocated to the Housing Choice Voucher program. Many cities and counties have, in recent years, experienced a reduction in their allocations to- ward the Housing Choice Voucher program due to federal budget cutbacks. The result is that cities and counties have had to reduce the number of households assisted through the voucher program because of the total budget amount allocated to the voucher program overall for the jurisdiction. Increasing rents and budget cuts have caused the amount needed for each house- hold to rise. The wait list for the Housing Choice Voucher program for the Metro HRA is currently closed and was last opened in June 2019. There were 17,300 application requests received in June, of which 2,000 (11.6% of the total applications) were selected. The wait list is expected to be closed for three or more years until the next opening. The substantial number of families still requiring rental assistance demonstrates the strong need for more affordable housing in the Twin Cities Metro Area. The table below shows the Fair Market Rents as identified by the Department of Housing and Urban Development (HUD) as the payment standard for Housing Choice Vouchers. Studio 1 BR 2BR 3BR 4BR 5BR Fair Market Rents $835 $1,005 $1,265 $1,790 $2,110 $2,425 Studio 1 BR 2BR 3BR 4BR 5BR Fair Market Rents $763 $940 $1,185 $1,570 $1,845 $2,170 2020 Studio 1 BR 2BR 3BR 4BR 5BR Fair Market Rents $820 $971 $1,214 $1,722 $2,025 $2,385 ** All other cities Sources: Housing Link; Metro HRA FAIR MARKET RENTS HENNEPIN COUNTY, MINNESOTA FISCAL YEAR 2019 * Exception cities include Chanhassen, Chaska, Edina, Eden Prairie, Excelsior, Golden Valley, Hopkins, Maple Grove, Minnetonka, Roseville, Shoreview, St. Anthony, White Bear Lake Exception Cities* All Other Cities** All Other Cities** RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 138 Summary of Rental Market Conditions As of the 3rd quarter of 2019, the overall vacancy rate for stabilized market rate units in Edina was 2.8% which is less than the 5% market equilibrium rate that provides for sufficient con- sumer choice and turnover in a balanced market. The overall vacancy rate for the Twin Cities Metro Area was slightly less at 2.3%. Rents have increased throughout the Twin Cities Metro Area for two dominant reasons: 1) because new market rate apartments coming on-line have pushed the average rent higher and 2) the tight rental market overall has encouraged landlords to raise rents because of high demand. A portion of older properties have been remodeled within the “value add” segment, which has also caused their rents to rise. Affordable rental properties are also experiencing high demand, even more so than the tradi- tional rental market. Properties that offer rental rates affordable to households with incomes at 60% or less of AMI continue to be in high demand, often with substantial waiting lists. Prop- erties that have a Section 8 project-based contract where the resident pays 30% of their income or less for the monthly rent (qualified at 50% or less of AMI), are also in high demand. The Housing Choice Voucher program administered by the Metro HRA for Edina currently serves 98 households residing in the City and offers housing assistance in order to help afford housing on the private market. Budget cuts to the Voucher program at the Federal level have challenged many communities in being able to assist as many households as previously and with rising rents, the total number assisted has been decreasing. If budget cuts continue or even if they remain stagnant, high demand and rising rents will make it even more difficult to serve very low-income households in Edina and in the Region. Edina has a proportion of older market rate rental units that, despite rising rents, are priced at a level to serve households with incomes at 50% and 60% of AMI. Among the 4,552 market rate units surveyed, an estimated 30% (23.1%) of units had rents affordable to households in the above income categories. Despite these units having affordable rents, they may not be occupied by households with in- comes that are within the affordable range. It is possible that some or all these units are rented to households with incomes higher than 50% or 60% of AMI and that the resident elects to pay a smaller portion of their income toward housing. This is one of the significant challenges in how to analyze the ability of the NOAH housing stock to adequately serve the needs of those with low- and moderate incomes. Vacancy rates are a point-in-time count as to units that are open at the time of the survey. Overall, there has been a general trend toward more people living alone or in smaller house- holds. With the significant increase in rents, studio and one-bedroom units have increased in popularity. As affordability will continue to be an issue, the higher proportions of smaller unit types will be more prevalent in the market. Three-bedroom units are always in short supply, RENTAL MARKET ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 139 but we have recently seen more demand for this unit type in both the market rate and afforda- ble segments of the rental market. Childless households and families with children are inter- ested in this unit type, but families with children renting, if not seeking affordable housing, are usually in transition to an ownership single-family home. SENIOR HOUSING ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 140 Senior Housing Defined The term “senior housing” refers to any housing development that is restricted to people age 55 or older. Today, senior housing includes an entire spectrum of housing alternatives, which occasionally overlap, thus making the differences somewhat ambiguous. However, the level of support services offered best distinguishes them. Maxfield Research and Consulting LLC classi- fies senior housing projects into five categories based on the level of support services offered: Adult/Few Services; where few, if any, support services are provided, and rents tend to be mod- est; Independent Living (Congregate/Optional-Services); where support services such as meals and light housekeeping are available for an additional fee; Independent Living (Congregate/Service-Intensive); where support services such as meals and light housekeeping are included in the monthly rents; Assisted Living; where two or three daily meals as well as basic support services such as trans- portation, housekeeping and/or linen changes are included in the fees. Personal care services such as assistance with bathing, grooming and dressing is included in the fees or is available ei- ther for an additional fee. Memory Care; where more rigorous and service-intensive personal care is required for people with dementia and Alzheimer’s disease. Typically, support services and meal plans are similar to those at assisted living facilities, but the heightened levels of personalized care demand more staffing and higher rental fees. These five senior housing products tend to share several characteristics. First, they usually offer individual living apartments with living areas, bathrooms, and kitchens or kitchenettes. Second, they generally have an emergency response system with pull-cords or pendants to promote se- curity. Third, they often have a community room and other common space to encourage social- ization. Finally, they are age-restricted and offer conveniences desired by seniors, although as- sisted living projects sometimes serve non-elderly people with special health considerations. The five senior housing products offered today form a continuum of care (see the graphic on the following page), from a low level to an intensive one; often the service offerings at one type overlap with those at another. In general, however, adult/few services projects tend to attract younger, more independent seniors, while assisted living and memory care projects tend to at- tract older, frailer seniors. Other specialty facilities are being added to the market for the care of other types of diseases. Edina-East and West cares for individuals with Parkinson’s disease. SENIOR HOUSING ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 141 Senior Housing in Edina As of November 2019, Maxfield Research identified 24 senior housing properties in Edina and two skilled nursing facilities. These properties contain 2,299 units and 148 skilled nursing beds. One property, Avidor Edina (165 units) was in its initial lease-up period at the time of the sur- vey. Of the total units, excluding Avidor Edina, the survey identified 91 vacancies resulting in an overall vacancy rate of 4.0% for stabilized senior housing properties. Market equilibrium va- cancy rates for senior housing are determined by service level as shown below. Subsidized/Affordable Active Adult 3% Market Rate Active Adult Ownership 2% Rental 5% Market Rate Independent Living 5% Market Rate Assisted Living 7% Market Rate Memory Care 7% The higher equilibrium vacancy rates for assisted living and memory care reflect the higher rates of turnover experienced by these types of facilities. Several properties provide a continuum of care that includes independent living, assisted living and memory care on the same campus. The chart on the following page shows the number of units by service level and the correspond- ing vacancy rate. Additional information regarding each property is included in the Appendix. The following are key points from the survey of the senior housing supply. Single-Family Home Townhome or Apartment Congregate Apartments w/Optional Services Fully Independent Lifestyle Senior Housing Product Type Source: Maxfield Research and Consulting, LLC Fully of Highly Dependent on Care Assisted Living Memory Care (Alzheimer's and Dementia Units) Continuum of Housing and Services For Seniors Age-Restricted Independent Single-Family, Townhomes, Apartments, Condominiums, Cooperatives Congregate Service Intensive - Assisted Living with Light Services Nursing Facilities SENIOR HOUSING ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 142 Market Rate Ownership • Edina has two market rate ownership properties, 7500 York Cooperative and Creekside. Creekside is a 55 plus condominium complex while 7500 York is a cooperative. Under the cooperative format, owners purchase the right to reside in a unit at the property. Condo- miniums and cooperatives almost always have an association where owners have input on how the property is operated and are responsible for its maintenance and upkeep. • The two ownership properties have a combined 463 units, most of which are at 7500 York Cooperative, with 337 units (73%) of the total. • Today’s contemporary cooperatives offer larger size units and a higher proportion of two- bedroom units as they often attract slightly younger and more independent households. They also usually attract a higher proportion of couples and residents that prefer to be more involved in the ongoing operations of the property. Market rate ownership properties that have been developed in Edina have been very successful and absorbed rapidly at the time when they were constructed. Condominium and cooperative units are resold in the private market as other homes. Residents can deduct mortgage interest and property taxes from their federal income tax (current deduction for property tax is limited to a maximum of $10,000). Market Rate Active Adult Rental • There is one market rate active adult rental property in Edina, Avidor Edina. As of Novem- ber 2019, there were 39 vacancies, nearly all of which are one-bedroom units. The property has 165 units and residency is restricted to households age 55+. The property has a rental 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 0 100 200 300 400 500 600 Active Adult - Rental Sub/Aff Active Adult Active Adult - Owner Independent Living (Cong.) Assisted Living Memory Care Specialty Care Vacancy RateUnitsSenior Housing Summary by Service Level, 2019 No. Units Vacancy Rate SENIOR HOUSING ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 143 format and offers activities, scheduled transportation and housekeeping and may have ac- cess to other services for additional charge if those are available in other components of the property. Otherwise, residents are expected to be able to live independently. Over time, some residents may require additional services. They may either move to a more intensive property or may remain at their current residence and contract with an outside provider to have services brought directly to their unit. Subsidized Active Adult • Subsidized (deep-subsidy) active adult senior housing offers affordable rents to qualified low income seniors and handicapped/disabled persons. Typically, residents may earn no more than 50% of the area median income adjusted for household size and residents pay 30% of their adjusted gross income for rent. The remaining portion of the rent is typically paid by the Department of Housing and Urban Development. These programs are usually Section 8 or Section 202. If public housing is available, residents may qualify with an income that does not exceed 80% of the area median income. For households meeting the age and income qualifications, subsidized senior housing is usually the most affordable rental option available. Affordable or shallow-subsidy projects are typically funded through the Low-In- come Housing Tax Credit Program (LIHTC) and residents pay a specific monthly rent that is set at a level whereby households may have an adjusted gross income that is between 50% to 60% of the county’s area median income. Most properties under these programs offer no services and are considered active adult housing. • There are no shallow-subsidy, age-restricted rental properties in Edina. Many communities in the Twin Cities Metro Area have recently had age-restricted (62+) rental properties devel- oped, targeting low- and moderate-income seniors. Examples include The Cavanaugh in Crystal, The Grainwood in Prior Lake, The Legends at Silver Lake Village (St. Anthony), The Legends of Apple Valley (Apple Valley), The Legends of Champlin (Champlin), The Legends of Minnetonka and others. These properties have absorbed rapidly and continue to maintain high occupancies and often, wait lists. The success of these properties demonstrates the significant need for units to meet the demand from moderate income independent seniors. Barriers to shallow-subsidy development include reduced priority for LIHTC funding for households age 55+ and a lack of other financial resources and tools to cover the develop- ment cost gap. The market equilibrium rate for shallow-subsidy (affordable) properties is about 3%. • Edina has three deep-subsidy properties that serve households age 62 years or older, South Haven, Yorktown Continental and Summit Point/Woodhaven. South Haven has 100 units, Yorktown Continental has 264 units and Summit Point has 29. All properties have only one- bedroom units and all buildings were occupied at the time of the survey. The market equi- librium rate for deep-subsidy properties is usually 3%. South Haven’s waiting list is closed and they are not accepting any applications. Units range in size from 535 to 600 square feet and residents pay 30% of their adjusted gross annual income toward rent. The remaining portion of the rent is paid through a direct subsidy to the property owner. South Haven was SENIOR HOUSING ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 144 funded under the Section 202 program and Yorktown Continental and Summit Point/Woodhaven were funded under the HUD Section 8 (project-based) program. • The federal government has all but eliminated the development of new project-based Sec- tion 8 units except in designated census tracts of major metropolitan areas where substan- tial need has been identified. A NOFA (notice of funding availability) was issued in 2018 un- der the HUD Section 202 program and again in April 2019. Prior to 2018, no funding had been issued since 2010 by the Department of Housing and Urban Development for this type of housing (low-income senior). • Many subsidized senior properties maintain waiting lists and some waiting lists are very long (many months or potentially up to a year). Federal programs for the development of deep-subsidy rentals have been substantially reduced in recent years and it is very difficult to obtain funding to develop additional units. Continuing Care Retirement Community • There are no continuing care retirement communities in Edina. A portion of Edina residents however, have relocated to Friendship Village in Bloomington, which is one of three CCRCs in the Twin Cities Metro (Bloomington, Plymouth and Golden Valley). Friendship Village re- cently expanded their campus, adding another 100 independent living apartments and a new replacement service-based facility that includes assisted living, memory care and skilled nursing beds. Independent Living (Congregate) • Six properties in Edina offer independent (congregate) living with a total of 461 units. All six properties also offer other service levels, thereby providing a continuum of care. These in- clude The Waters of Edina (59 units), Brookdale Edina (150 units), Heritage of Edina (59 units), Vernon Terrace (127 units) and Yorkshire of Edina (66 units). At the time of the sur- vey, there were 34 units vacant for an overall rate of 7.4% with vacancies primarily concen- trated among two properties. The market for independent living with optional services has increased in popularity over the past few years. Many seniors however, are looking for larger units and contemporary in-unit and common area features. Vacancies are concen- trated in the oldest properties. • Market rate rents for independent living (congregate units) range from a low of $1,189 per month for a studio unit at Heritage of Edina to a high of $6,180 per month for a two-bed- room plus den unit at The Waters of Edina. Unit sizes range from 290 square feet for a stu- dio unit at Heritage of Edina to 1,698 square feet for a three-bedroom unit at Brookdale Edina. Examples of amenities included in most independent living properties are commu- nity/club room, fitness center, outdoor sundeck/terrace, enclosed heated parking (usually at additional charge), optional meals and/or limited meal program, housekeeping, continen- tal breakfast, outdoor garden areas, transportation and activities. SENIOR HOUSING ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 145 Assisted Living • There are ten properties that offer assisted living services in Edina with a total of 522 units. Of the ten properties, seven also offer at least one other service level. As of November 2019, there were 35 vacancies among the assisted living properties for an overall vacancy rate of 6.7%. The market equilibrium vacancy rate for assisted living is 7.0%. As such, the current overall vacancy rate is just below market equilibrium. Some properties however, may have wait lists for specific unit types. For example, Sunrise Senior Living has an almost two-year wait list for one-bedroom units, of which the number is very limited. Again, trends in the market indicate that many seniors prefer a larger size unit with a separate bedroom. • Market rate monthly rents for basic services excluding personal care begin at $1,330 for a studio unit at Heritage of Edina and extend to $5,500 for a two-bedroom unit at Sunrise of Edina. Additional costs for personal care are based on the needs of the individual resident which are identified based on an initial personal care assessment usually conducted by a registered nurse prior to admittance to the facility. Common features of assisted living properties include full kitchens or kitchenettes, private bathrooms, two or three meals per day, linen services, personal laundry and weekly housekeeping. A full complement of activi- ties is provided as is transportation to shopping and outings. Some facilities will provide transportation to doctor’s appointments, but most facilities require the resident to arrange transportation to individual physician appointments. Memory Care • There are fourteen properties in Edina that offer memory care with a total of 299 units. As of November 2019, 22 units were vacant for an overall vacancy rate of 7.4%. The vacancy rate of 7.4% is just above the market equilibrium rate of 7.0%. • Market rate rents at memory care facilities in Edina for a base level of services begin at $3,750 for a studio unit at Sunrise of Edina and extend to $14,250 per month for a private room at any of the English Rose Suites house locations in Edina. Additional personal cares beyond the base level of services are at additional charge depending on the level of services that are required by the resident. Typically, base fees include three meals per day, daily housekeeping, weekly linen change, personal laundry, passive programming, showers twice per week, medication administration and other services such as personal escorts to meals and activities. Most memory care facilities are secured to prevent residents from wander- ing. There is usually an outdoor walking courtyard with landscaping and resting places; some have gardens and/or gardening plots that may be attended to by residents. Specialty Care • Edina has one facility, Edina – East and West, that focuses on Parkinson’s Care. The facility is a twin home with six, one-bedroom units that house six residents. There were no vacan- cies at the time of the survey. SENIOR HOUSING ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 146 Active Adult MR Ownership Total % of Avg. Avg. Avg. Fee/ Unit Type Units Total Size Low -High Mo. Fee Sq. Ft. 1BR 195 42%861 $41,391 -$302,000 $142,967 $165.98 1BR+D 18 4%1,314 $305,125 -$351,490 $328,308 $249.95 2BR 206 44%1,226 $61,648 -$345,000 $168,454 $137.38 2BR+D 26 6%2,067 $445,500 -$672,000 $558,750 $270.38 3BR 18 4%1,455 $89,915 -$89,915 $89,915 $61.80 Total:463 100%1,132 $41,391 -$672,000 $145,928 $128.91 Vacancy Rate:0.0% Active Adult Market Rate Rental Total % of Avg. Avg. Avg. Rent/ Unit Type Units Total Size Low -High Rent Sq. Ft. 1BR 77 47%636 $2,175 -$2,852 $2,514 $3.95 1BR+D 18 11%802 $2,514 -$2,514 $2,514 $3.13 2BR 70 42%1,134 $3,501 -$4,984 $4,243 $3.74 Total:165 100%865 $2,175 -$4,984 $3,248 $3.75 Vacancy Rate:23.6% Active Adult Affordable Rental Total % of Avg. Avg. Avg. Rent/ Unit Type Units Total Size Low -High Rent Sq. Ft. 1BR 391 99%553 $875 -$1,175 N/A*N/A* 2BR 2 1%650 $1,350 -$1,350 $1,350 $2.08 Total:393 100%602 $875 -$1,350 N/A*N/A* Vacancy Rate:0.0% Independent Living (Cong) Total % of Avg. Avg. Avg. Rent/ Unit Type Units Total Size Low -High Rent Sq. Ft. Studio 23 5%467 $1,189 -$2,675 $1,765 $3.78 1BR 218 47%665 $1,882 -$4,530 $3,164 $4.76 1BR+D 39 8%908 $2,034 -$4,530 $2,463 $2.71 2BR 160 35%1,043 $2,029 -$5,970 $3,910 $3.75 2BR+D 20 4%1,312 $2,461 -$5,770 $3,503 $2.67 3BR 1 0%1,628 $5,250 -$5,250 $5,250 $3.22 Total:461 100%1,004 $1,189 -$5,970 $3,342 $3.96 Vacancy Rate:0.8% Range Monthly Rents Range Monthly Rents Range TABLE S-1 UNIT TYPE SUMMARY SENIOR HOUSING PROPERTIES December 2019 Purchase Price Range EDINA, MN Base Monthly Rents Range SENIOR HOUSING ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 147 Assisted Living Total % of Avg Avg Avg. Rent/ Unit Type Units Total Size Low -High Rent Sq. Ft. Pvt Suite*12 2%190 $12,167 -$12,167 $12,167 $64.04 Studio 196 39%362 $3,100 -$3,895 $3,964 $10.96 1BR 220 44%690 $3,300 -$5,745 $4,281 $6.20 1BR+D 20 4%932 $3,900 -$5,205 $4,526 $4.85 2BR 51 10%1,066 $4,550 -$6,150 $4,375 $4.10 2BR+D 11 2%1,611 $5,505 -$6,180 $5,881 $3.65 Total:*498 100%629 $3,100 -$6,180 $4,211 $6.69 Vacancy Rate:6.9% Memory Care Total % of Avg. Avg. Avg. Rent/ Unit Type Units Total Size Low -High Rent Sq. Ft. Studio 207 66%376 $2,459 -$6,718 $4,863 $12.93 1BR 46 15%544 $4,580 -$6,988 $5,668 $10.42 Comp. Ste 16 5%348 $3,250 -$5,340 $5,692 $16.36 Pvt. Ste 44 14%222 $3,935 -$4,950 $4,294 $19.34 Total:313 100%389 $2,459 -$6,988 $5,783 $14.87 Vacancy Rate:8.0% Specialty Care Total % of Avg. Avg. Avg. Rent/ Unit Type Units Total Size Low -High Rent Sq. Ft. Pvt. Ste 6 100%168 $9,000 -$10,500 $9,750 $58.04 Total:6 100%168 $9,000 -$10,500 $9,750 $58.04 Vacancy Rate:0.0% Source: Maxfield Research and Consulting, LLC Average Cooperative: $56,806 Avg. SF = 892 Average Condo: $384,291 Avg. SF = 1,489 TABLE S-1 (continued) UNIT TYPE SUMMARY SENIOR HOUSING PROPERTIES EDINA, MN December 2019 Note: Quoted pricing reflects market rents; private AL suites are excluded because of all-inclusive pricing Range Range Base Monthly Rents Range Base Monthly Rents Base Monthly Rents SENIOR HOUSING ANALYSIS MAXFIELD RESEARCH AND CONSULTING 148 Photos of Selected Senior Communities in Edina Creekside Edina Brookdale Edina 7500 Cooperative Avidor Vernon Terrace of Edina Yorkshire of Edina SENIOR HOUSING ANALYSIS MAXFIELD RESEARCH AND CONSULTING 149 Aurora Edina Braeburn Summary of Senior Housing Analysis • Edina has a variety of age-restricted properties (55+ and 62+) that offer ownership and rental options, independent living and service-enriched senior housing, covering nearly the entire senior housing spectrum. There are however, no active adult shallow-subsidy prop- erties (those with rents affordable to 55+ households with incomes between 50% and 60% of AMI. Communities such as Crystal, Apple Valley, Prior Lake, Woodbury and others have had construction of affordable active adult housing, which has been very well-received. • In total, Edina offers the following service levels and number of units: Active Adult Ownership 463 units Active Adult Rental 165 units Affordable Senior 393 units Shallow Subsidy 0 units Deep-Subsidy 393 units Continuing Care Retirement Community 0 units Independent Living (Congregate) 461 units Assisted Living 510 units Memory Care 313 units Parkinson’s 6 units Total 2,311 units • In addition to market rate properties, Edina offers extremely low-income seniors and those with disabilities some income-restricted housing options. There are three, deep-subsidy properties that offer independent living to seniors who would not qualify for market rate senior housing. SENIOR HOUSING ANALYSIS MAXFIELD RESEARCH AND CONSULTING 150 • Vacancy rates for senior housing properties in Edina are below market equilibrium rates among most service levels. Several facilities are fully-occupied. Some facilities have wait lists for specific floor plans and/or in some service levels. This indicates there is additional demand for senior housing in Edina. Calculations of senior housing need are provided in the Demand Analysis section of the report. • Costs for housing and care services continue to rise in the Twin Cities Metro Area and Edina is no exception. Senior housing prices for service-based facilities rise by 3% to 5% each year. Many properties require residents to pay privately at entry to the facility for at least two years and properties often have a facility “cap” of 15% to 20% of residents that can use public assistance at a given time. This means that some seniors are not able to afford mar- ket rate senior housing and/or if they have spent down their assets, may have to wait to move over to an Elderly Waiver. • Edina has proven to be an attractive location for senior housing and most properties have absorbed well and maintain high occupancies. As residents age, turnover at service-based properties usually increases. In addition, properties with wait lists may have to go through their lists several times in order to find a prospect that is willing to relocate right away. The newest senior housing properties in Edina are Yorkshire Gardens, Aurora on France and Avi- dor. Avidor is the newest property and is still in its initial lease-up period. • One of the primary sources of income to support senior housing costs is the proceeds from the sale of a home. Homeownership rates in the US and especially in Minnesota have been high in the low to mid 70% for decades. Most recently shifts in lifestyles and buyer prefer- ences have shifted slightly toward rental housing. Some economists are concerned that with a decrease in homeownership rates, a decline in the number of defined pension plans and greater fluctuations in the stock market, that a growing number of seniors in the future may be financially unprepared to pay for housing with services. • There is no way to definitively identify the number of people age 65+ that are residing in traditional apartments versus senior housing. Analysis by Maxfield Research has revealed that the total inventory of senior housing is capturing an estimated 18% to 20% of the sen- ior population. That being said, the remaining 80% of seniors are residing in other types of housing that are not age-restricted. Although market penetration of senior housing contin- ues to increase overall, there are seniors that do not and will never live in senior housing. Our demand capture rates account for that. • Estimating the proportion of seniors that may rent their housing and not reside in senior housing, we can look to the number of senior households (65+) from Table D-9, Tenure by Age of Householder, which shows an estimated 6,517 households age 65+ renting their housing. Subtracting the number of senior housing units in Edina that are rented from this total, reveals that 69% of seniors renting reside at a property that is not age-restricted PENDING RESIDENTIAL DEVELOPMENTS MAXFIELD RESEARCH AND CONSULTING, LLC 151 Pending Residential Developments There are several pending residential developments currently in the planning process in Edina. There are other developments under consideration, which have not yet been formally submit- ted to the City. This section discusses the developments that have already submitted plans to the City, some of which have received preliminary and/or final approvals. Table PR-1 is a sum- mary of rental developments. For-Sale Currently, there are no pending for sale developments in Edina. Market Rate Rental (See Table PR-1) The Promenade Residences, at 3650 Hazelton, Road is a proposed 186-unit market rate devel- opment that would be built on the site of the existing Guitar Center. The proposed site is within optimal walking distance of Galleria Edina, Lunds & Byerlys and Target. Most recently, the project received approval for the appropriate zoning and planning resolutions. Proposed location of The Promenade Residences Mixed Income Rental The Millennium at Southdale is an approved 375-unit rental development being led by DLC Residential. Of the 375 units, 357 (95.2%) will be market rate and 18 (4.8%) will be affordable. The development is planned to open in two phases. Phase One will contain 227 units while Phase Two is planned to have 148 units. The Lorient is a 45-unit, primarily market, rental development currently under construction in Edina’s Morningside neighborhood. The Lorient is situated in a walkable community off France Avenue across the street from the Southwest Minneapolis neighborhood of Linden Hills. Vari- ous restaurants, coffee shops, exercise studios, and the Linden Hills Co-op are all within walking PENDING RESIDENTIAL DEVELOPMENTS MAXFIELD RESEARCH AND CONSULTING, LLC 152 distance. The Lorient is being led by Orion Investments and three of its 45 units are targeted to individuals with disabilities. The Lorient: currently under construction 7001 France Ave is a proposed 225-unit development south of the Galleria Edina that would be on the current US Bank site. Sixty percent (60%) of the units (135) will have market rents and 40% of the units (90) will be affordable. Ryan Companies is the developer. Affordable Rental Amundson Flats is a potential future affordable rental development of 62 units that would be in Edina’s Grandview Neighborhood. At present, Amundson Flats has received preliminary ap- provals from the City. Income qualifications for the property would restrict rents to residents by 60% AMI. MWF Properties is the developer. 4100 76th St W is a proposed affordable development of 70 units being led by Aeon. The prop- erty would be within walking distance of Centennial Lakes and its shops. The City has approved a density increase for the property. PENDING RESIDENTIAL DEVELOPMENTS MAXFIELD RESEARCH AND CONSULTING, LLC 153 Edina Pending Rental and For Sale Developments PENDING RESIDENTIAL DEVELOPMENTS MAXFIELD RESEARCH AND CONSULTING, LLC 154 Project Name Total Location City Units Developer/Applicant Unit Type Status/Notes Millennium at Southdale Phase One & Two Edina 375 DLC Residential MR/Aff Phase one is under Construction. Of the 375 units 18 will be affordable (4.8%). 3250 W 66th St 55435 Promenade Residences Edina 186 Lund Real Estate MR Zoning and Planning Resolutions Approved 3650 Hazelton Rd 55435 The Lorient Edina 46 Orion Investments MR/Aff Under construction. Of the 45 units, 6.7% (3 units) will be for those with disabilities. 4500 France Ave 55410 7001 France Ave Edina 225 Ryan Companies MR/Aff Proposed. Would have 225 units, of which 135 would be market rate and 90 would be affordable. 7001 France Ave 55435 4100 76th St W Edina 70 Aeon AFF Zoning Density Increase Approved. 4100 76th St W Amundson Flats Edina 62 MWF Properties AFF Received Preliminary Approvals. For those at or below 60% of AMI.7075 Amundson Ave 55439 Affordable:243 Under Construction Subtotal:21 Approved Subtotal:132 Planned/Proposed Subtotal:90 Market Rate:720 Under Construction Subtotal:399 Approved Subtotal:186 Planned/Proposed Subtotal:135 Pending Total:963S Sources: City of Edina; Maxfield Research & Consulting, LLC; Finance and Commerce TABLE PR-1 PENDING MARKET RATE & AFFORDABLE GENERAL OCCUPANCY RENTAL DEVELOPMENTS CITY OF EDINA JANUARY 2020 HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS MAXFIELD RESEARCH AND CONSULTING, LLC 155 Housing with Special Services At times, some households may have service needs that call for specialized living situations. These may include those with physical and or mental limitations, specific health situations, the homeless, unaccompanied youth, those with mental health issues, victims of domestic violence, those with chemical or substance abuse, brain trauma, autism, or other situations that may re- quire special residential features or special services. Edina Disabilities Overview Disability by Type Disabilities encompass a wide range of conditions and are prevalent among the overall popula- tion. Table HS-1 examines the breakdown of disabilities by type in Edina and the Twin Cities Metro Area. Categories used by the US Census Bureau in its 2018 American Community Survey include; hearing difficulty, vision difficulty, cognitive difficulty, ambulatory difficulty, self-care TABLE HS-1 DISABILITY BY TYPE EDINA AND TWIN CITIES METRO AREA 2019 Type of Disability Total Number with Disability Percent with Disability Hearing Difficulty 1,462 2.9% Vision Difficulty 656 1.3% Cognitive Difficulty 1,490 2.9% Ambulatory Difficulty 2,159 4.2% Self-Care Difficulty 879 1.7% Independent Living Difficulty 1,776 3.5% Edina Total Population*Total Number with a Disability Percent with a disability 53,124 4,882 9.2% Type of Disability Total Number with Disability Percent with Disability Hearing Difficulty 90,902 3.0% Vision Difficulty 45,749 1,5% Cognitive Difficulty 124,684 4,1% Ambulatory Difficulty 132,594 4,4% Self-Care Difficulty 58,413 1,9% Independent Living Difficulty 106,355 3.5% Twin Cities Total Population*Total Number with a Disability Percent with a Disability 3,128,957 306,259 9.8% *: Does not include institutionalized populations. Edina Twin Cities Metro Area Sources: U.S. Census Bureau - American Community Survey; Maxfield Research and Consulting, LLC. Note: Twin Cities Metro Area includes the following counties; Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS MAXFIELD RESEARCH AND CONSULTING, LLC 156 difficulty, and independent living difficult. The chart is adjusted by Maxfield Research from 2017 to 2019. Keep points from the chart are below: • Approximately one in ten individuals (9.2%) living in Edina suffer from a disability. This is slightly lower than the percentage of individuals suffering from a disability in the Twin Cities Metro Area (9.8%). • The disability condition with the highest percentage of individuals in both Edina and the Twin Cities is ambulatory difficulty. • The disability conditions with the two lowest percentages in both Edina and the Twin Cities are vision difficulty and self-care difficulty. • Individuals with multiple disabilities are counted in several categories. Therefore, the total number of individuals in Edina with disabilities (4,882) and in the Twin Cities Metro (306,259) is lower than the total of all subcategories. Disability by Age Table HS-2 is a look at the breakdown by age of disabled individuals in Edina and the Twin Cities Metro Area. Below are key insights: • Edina’s percentage of individuals under 18 with disabilities (2.1%) and 18 to 64 with dis- abilities (4.2%) are both lower than the percentage of all individuals with disabilities (9.2%). • Of those 65 and up, Edina’s percentage of individuals with disabilities (29.9%) is lower than in the Twin Cities Metro Area (30.3%). • The percentage of individuals under 18 with disabilities in the Twin Cities Metro Area (3.6%) is 1.5% more than those under 18 with disabilities in Edina (2.1%). • The percentage of individuals 18 to 64 with disabilities in the Twin Cities Metro Area (8.0%) is almost two times as much as individuals 18 to 64 with disabilities in Edina (4.2%). HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS MAXFIELD RESEARCH AND CONSULTING, LLC 157 Edina Disabilities Summary • Approximately one in ten individuals (9.2%) living in Edina suffer from a disability. This is slightly lower than the percentage of individuals suffering from a disability in the Twin Cities Metro Area (9.8%). • The disability condition with the highest percentage of individuals in both Edina and the Twin Cities is ambulatory difficulty. • The disability conditions with the two lowest percentages in both Edina and the Twin Cities are vision difficulty and self-care difficulty. • Edina’s percentage of individuals under 18 with disabilities (2.1%) and 18 to 64 with dis- abilities (4.2%) are both lower than the percentage of all individuals with disabilities (9.2%). • Of those 65 and up, Edina’s percentage of individuals with disabilities (29.9%) is lower than in the Twin Cities Metro Area (30.3%). Overview of Homelessness in Hennepin County The most comprehensive studies of the homeless population in Minnesota have been con- ducted once every three years (since 1991) by the Wilder Research Center, a division of the Am- herst H. Wilder Foundation (Wilder Foundation). The most recent study was in October 2018; statistics from the previous studies in October 2009, 2012 and 2018 are also used for compari- son. Age Total Number of People Number of People with a Disability Percent with Disability Under 18 12,609 271 2.1% 18 to 64 29,202 1,235 4.2% 65+11,313 3,377 29.9% All Ages 53,124 4,883 9.2% Type of Disability Total Number of People Number of People with a Disability Percent with Disability Under 18 743,490 26,815 3.6% 18 to 64 1,983,969 158,158 8.0% 65+401,498 121,555 30.3% All Ages 3,128,957 306,528 9.8% *: Does not include institutionalized populations. Edina* Twin Cities Metro Area* Sources: U.S. Census Bureau - American Community Survey; Maxfield Research and Consulting, LLC. TABLE HS-2 DISABILITY EDINA AND TWIN CITIES METRO AREA 2019 Note: Twin Cities Metro Area includes the following counties; Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS MAXFIELD RESEARCH AND CONSULTING, LLC 158 The surveys are conducted on a single day and represent a snapshot of the population of peo- ple in Minnesota experiencing homelessness. Therefore, these estimates should be considered conservative and that the actual number of homeless on any given day is likely to be higher due to homeless that are “couch surfing” or “doubling up.” The Wilder Foundation, in addition to supplying information on Minnesota homelessness statewide, also tracks homelessness by region. Data for the city of Edina is not available. How- ever, data for Hennepin County, of which Edina is a part of, is presented on the following pages. Hennepin County, which includes the state’s largest city, Minneapolis, as well as suburban com- munities such as Edina, Plymouth, Eden Prairie, Medina and Brooklyn Park, has one of the larg- est homeless populations in the state. As of 2018, 4,072 people were identified as homeless. This is nearly 40% (39.8%) of the estimated homeless population in Minnesota. Number of Homeless by Housing Situation • As shown in Table SN-3, in 2018, over half of the homeless were in emergency shelters (2,242 or 55.1%). Transitional housing accounted for 21.0% of the housing for the homeless while domestic violence shelters and rapid rehousing accounted for 3.8% and 0.7% respec- tively. Approximately one fifth (19.4%) were unsheltered. • Of those in temporary shelters, 2,687 or 66% were adults 18 and up, 32.5% were children with parents, and 1.5% were children without parents. Homelessness by Age • Table SN-4 shows that the age cohort with the highest number of homeless is those 30 to 39 in Hennepin County (23.4%) and the Twin Cities Metro Area (23.1%). Housing Situation Emergency shelter 2,242 Domestic violence shelters 153 Transitional housing 856 Rapid Rehousing 30 Unsheltered 791 TOTAL 4,072 Transitional Housing includes Rapid Rehousing. *Homeless people age 18 and older, excluding children with parents and unaccompanied youth. Sources: Wilder Research, "2018 Minnesota Homeless Study"; Maxfield Research & Consulting, LLC. 2,687 1,395 68 495 701 28 19 27 61 832 85 342 63 1,324 15 0 2 0 TABLE HS-3 NUMBER OF HOMELESS HENNEPIN COUNTY, MN 2018 HENNEPIN COUNTY Total number of children with parents in temporary housing programs, informal housing or Total number of unaccompanied minors < 18 in temporary housing programs, informal housing Total number of people in temporary housing programs, informal housing or unsheltered Total number of adults* age 18+ in temporary housing programs, informal housing or HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS MAXFIELD RESEARCH AND CONSULTING, LLC 159 • The age cohorts with the second and third highest number of homeless are those 40 to 49 and 50 to 54 in both Hennepin County (19.5% and 14.0% respectively) and the Twin Cities Metro Area (19.0% and 12.1% respectively). • The age cohort with the lowest number of homeless in both Hennepin County and the Twin Cities Metro Area is those 80 and up (0.1% in Hennepin County and under 0.1% in the Twin Cities Metro Area). • The second and third lowest categories in both geographies are those 70 to 79 (0.9% in Hennepin County and 1.0% in the Twin Cities Metro Area) and those 22 to 24 (4.9% in Hennepin County and 5.3% in the Twin Cities Metro Area). Income and Employment of the Homeless • In Hennepin County, an estimated 26.1% of homeless had a monthly income under $200, versus 25.6% in the Twin Cities Metro Area. An estimated 43.8% were estimated to make between $200 and $800 per month, versus 42.9% in the metro. The homeless with incomes Age Number Pct.Number Pct. 18 to 21 161 6.2%386 9.0% 22 to 24 127 4.9%228 5.3% 25 to 29 270 10.4%460 10.8% 30 to 39 606 23.4%989 23.1% 40 to 49 505 19.5%813 19.0% 50 to 54 362 14.0%517 12.1% 55 to 59 276 10.7%426 10.0% 60 to 69 259 10.0%410 9.6% 70 to 79 23 0.9%43 1.0% 80+2 0.1%2 0.0% 2,591 100.0%4,274 100.0% Median age *: Twin Cities Metro Area includes the following counties; Anoka, Carver, Dakota, Hennepin, Scott, Ramsey, and Washington. Sources: Wilder Research, October 2019. "Minnesota Homeless Study, 2018." TABLE HS-4 HOMELESS AGE DISTRIBUTION 2018 HENNEPIN COUNTY & TWIN CITIES METRO AREA* Note: Includes people living in temporary housing programs or informal housing and identified unsheltered people, excluding youth less than 18 years of age and children staying with parents Hennepin County Twin Cities Metro Area* 42 40 HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS MAXFIELD RESEARCH AND CONSULTING, LLC 160 of $800 or more per month accounted for 30.0% in Hennepin County versus 31.5% for the metro area. • The median income of the homeless in Hennepin County was $535 per month versus $600 Statewide. At $535 per month and allocating 30% for housing results in an affordable hous- ing cost of $161 per month, requiring deep-subsidy housing or a housing voucher, both in very short supply. • Hennepin County had a mean income of $673 which was 5.9% less than the Twin Cities Metro Area’s mean income of $715. • As shown on Table SN-6, the top three barriers to employment for the homeless in Henne- pin County in order are: physical health, mental/chemical health and transportation. In con- trast, the top three barriers to employment for the homeless in the Twin Cities Metro Area are in order: physical health, transportation and mental/chemical health. • The 4th and 5th barriers to employment in Hennepin County and the Twin Cities Metro Area are availability of affordable housing and lack of resources needed to work or look for work, respectively. Monthly Income Number Pct.Number Pct. Under $200 613 26.1%985 25.6% $200 to $400 457 19.5%635 16.5% $400 to $600 177 7.5%338 8.8% $600 to $800 395 16.8%677 17.6% $800 to $1,000 226 9.6%362 9.4% $1,000+479 20.4%848 22.1% TOTAL 2,347 100.0%3,845 100.0% Mean Income Median Income TABLE HS-5 MONTHLY INCOME OF THE HOMELESS SURVEYED HENNEPIN COUNTY & TWIN CITIES METRO AREA* 2018 $673 Sources: Wilder Research, October 2019. "Homeless adults and children, 2018." $535 $715 $600 Hennepin County Twin Cities Metro Area* *: Twin Cities Metro Area includes the following counties; Anoka, Carver, Dakota, Hennepin, Scott, Ramsey, and Washington. HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS MAXFIELD RESEARCH AND CONSULTING, LLC 161 Summary of Homelessness in Hennepin County • In 2018, over half of the homeless were in emergency shelters (2,242 or 55.1%). Transitional housing accounted for 21.0% of the housing for the homeless while domestic violence shel- ters and rapid rehousing accounted for 3.8% and 0.7% respectively. Approximately one fifth (19.4%) were unsheltered. • The age cohort with the highest number of homeless in both Hennepin County and the Seven County Metro area is between 30 to 39 (23.4% and 23.1% respectively). The age co- hort with the lowest number of homeless in both Hennepin County and the Seven County Metro Area is those 80 and up (0.1% and under 0.1% in the seven County Metro Area). • In Hennepin County, an estimated 26.1% of homeless had a monthly income under $200, versus 25.6% in the Seven County Metro Area. An estimated 43.8% were estimated to make between $200 and $800 per month, versus 42.9% in the metro. The homeless with incomes of $800 or more per month accounted for 30.0% in Hennepin County versus 31.5% for the metro area. • Hennepin County has a lower proportion of employed homeless than the metro area (24.3% vs 28.7%, respectively). • The two highest categories of hours worked by the homeless in both Hennepin County and the Seven County Metro Area were between 35-40 hours (45.1% in Hennepin County and Barriers to Employment Barrier Type Pct.Barrier Type Pct. 1 Physical Health 31.1%Physical Health 30.6% 2 Mental/Chemical Health 20.9%Transportation 22.7% 3 Transportation 20.6%Mental/Chemical Health 21.2% 4 Housing 18.7%Housing 17.9% 5 Lack of Resources needed to work or look for work 12.9%Lack of Resources needed to work or look for work 13.3% * Sources: Wilder Research, October 2019. "Homeless adults and children, 2018." TABLE HS-6 BARRIERS TO EMPLOYMENT FOR HOMELESS HENNEPIN COUNTY & TWIN CITIES METRO AREA* 2018 Hennepin County Twin Cities Metro Area* :Twin Cities Metro Area includes the following counties; Anoka, Carver, Dakota, Hennepin, Scott, Ramsey, and Washington. HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS MAXFIELD RESEARCH AND CONSULTING, LLC 162 42.0% in the Seven County Metro) and 25 to 34 hours (21.4% in Hennepin County and 22.4% in the Seven County Metro). • The top three barriers to employment for the homeless in Hennepin County are: physical health, mental/chemical health and transportation. In the Seven County Metro Area the biggest barriers to employment are physical health, transportation, and mental/chemical health. Edina and Nearby Communities: Emergency and Supportive Housing by Type Emergency Shelters No emergency shelters are present in Edina or the nearby communities of Bloomington, Eden Prairie, Hopkins, Richfield or Southwest Minneapolis (West of Interstate 35-W and South of 36th Street West. The closest emergency shelters to the study are; St Joseph’s Home for Children, Hope Street Shelter, Simpson Emergency Shelter, St Stephen’s Emergency Shelter, The Bridge for Youth Minneapolis, and Our Savior’s Shelter, all in South Minneapolis or directly south of the Downtown. Emergency Shelters in Hennepin County HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS MAXFIELD RESEARCH AND CONSULTING, LLC 163 Transitional Housing While emergency shelters provide short-term housing for people and families in immediate need of housing, transitional housing programs provide people and families more time and sup- portive help to deal with aspects of their life that make successfully obtaining and maintaining permanent housing difficult. A family or individual may move from a short stay (90 days or less) in an emergency shelter to an extended stay in a transitional housing program (usually up to two years). Transitional housing programs play an instrumental part in the effort to reduce the risk of homelessness for many people and families. There are currently no transitional housing facilities in Edina. However, in nearby South Minneapolis is Zoom House. Zoom House (22 units), at 3244 Blaisdell Avenue South, primarily houses single women with children and fami- lies. Transitional Housing Facilities in Edina’s Neighboring Communities HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS MAXFIELD RESEARCH AND CONSULTING, LLC 164 Permanent Supportive Housing While the goal of both emergency shelters and transitional housing programs is for their resi- dents to eventually obtain permanent housing, for some people, this is not a reality. Because of various reasons, most notably a mental illness or chemical addiction, or both, some people are unable to maintain independent housing in the private market. Many people also have a criminal record, most commonly a felony or unlawful detainer that prevents them from being able to find permanent housing because most landlords are unwilling to take the risk. Currently, there are three permanent housing facilities in Edina and surrounding communities that offer supportive services – 66 West, Nicollet Square, and Perspectives. The permanent supportive housing facilities/programs are listed in Table HS-7. Following the table are sum- maries of the facilities/programs. Facility Year Built Capacity Clientele 66 West 2017 39 units 3330 W 66th St Edina, MN 55424 Nicollet Square 2011 42 Units 3700 Nicollet Ave 55409 Minneapolis, MN Perspectives 1958 53 Units 3381 Gorham Ave St Louis Park, MN 55426 Total Units 134 Units NA: Not Available *2008 Pricing NA 3rd Year - $305* 4th Year - $410* Homeless young adults at or below 30% AMI. 30% of household Income Source: Maxfield Research & Consulting LLC, Urban Works, Local News Sources, Property Websites, Local News Sources, Area Cities, Cooperation for Supportive Housing, Kingfield Neighborhood Association. Homeless young adults or out of foster care at or below 30% AMI. TABLE HS-7 PERMANENT SUPPORTIVE HOUSING EDINA, MINNESOTA & NEARBY COMMUNITIES OCTOBER 2019 Monthly Rent 1st and 2nd Year - $210* For homeless mothers suffering from addiction/mental health disorders and their children. HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS MAXFIELD RESEARCH AND CONSULTING, LLC 165 Permanent Supportive Housing in Edina and Neighboring Communities 66 West Edina’s 66 West Apartments, which opened for occupancy in 2017, is the only permanent sup- portive housing in the City. The 39-unit apartment building is near Southdale Center and tar- gets homeless youth whose incomes are at or below 30% of AMI. 66 West Apartments HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS MAXFIELD RESEARCH AND CONSULTING, LLC 166 The location of 66 West, in the heart of the Southdale Commercial Area, is an asset to resi- dents. Advantages include convenient access to job opportunities, retail, and groceries: all within walking distance. Nearby destinations include; Southdale Center, Fairview Southdale Hospital, Galleria Edina and Cub Foods. Nicollet Square Nicollet Square is a mixed-use development that incorporates ground floor retail and residen- tial units on floors two and three. The 42-unit development opened in 2011 in the Kingfield neighborhood in Southwest Minneapolis, due west of I-35 W. Like 66 West Apartments, the property is targeted to homeless young adults. Perspectives Perspectives is a 53-unit supportive housing property that targets homeless women battling ad- diction and mental illnesses as well as their children. The housing units are off Highway 7 be- tween Highway 100 and Highway 169. Summary of Permanent and Supportive Housing Few permanent supporting housing developments exist in Edina except for 66 West. In addi- tion, only two developments, Nicollet Square and Perspectives, can be found in the surrounding communities of Bloomington, Eden Prairie, Hopkins, Minnetonka, Richfield, St Louis Park and Southwest Minneapolis. Most permanent supportive housing developments are near Down- town Minneapolis and Downtown St Paul. The lack of supportive housing developments outside of the Minneapolis and St Paul Core has the potential to create future obstacles for those requiring permanent supportive housing. One group requiring supportive housing that will be disproportionally affected are workers with jobs in suburban communities. These individuals will need to rely upon public transportation which may not service their destination or take a great deal of time. Employees are needed in retail and other service sector jobs in the suburbs. Communities such as 66 West, near Southdale Center, Galleria Edina, and Fairview Southdale Hospital are well positioned to provide conven- ient access to a wide variety of job opportunities for their residents. Regardless of whether resi- dents own transportation they are either a short bus ride away or walk to employment. Treatment Facilities and Halfway Houses Since chemical addiction is often a significant factor resulting in a person’s homelessness, treat- ment facilities and halfway houses are often the first steps in a homeless person’s journey to self-sufficiency. This section discusses the treatment facilities and halfway houses located in Edina. HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS MAXFIELD RESEARCH AND CONSULTING, LLC 167 We identified six treatment programs and halfway houses with 13 locations in adjacent com- munities. They are listed in Table HS-8 on the following page. The programs are also discussed. Facility Year Built Capacity Daily/Mo Fee Clientele Wayside House, Inc.1961 20 Total Units 2BR-$1,043/Mo 1341 & 1349 Jersey Ave S 18-2BR 3BR-$1,320/Mo St Louis Park, MN 55416 2-3BR Progress Valley - Women's Program II 1968 32 Units 1100 80th St E Bloomington, MN 55420 Progress Valley - Men's Program III 1965 24 Units 308 E 78th St Richfield, MN 55423 Pride Institute 1982 42 Units 14400 Martin Dr Eden Prairie, MN 55344 Westside Sober Living - Res. Treatment Ctrs NA 36 Beds 5 Location in the West Metro Westside Sober Living Houses NA 9 Beds 2 Locations in the West Metro Location 1: 5 beds Location 2: 4 beds Hati House Inc.1966 12 Units 1558 80th St E Bloomington, MN 55425 ReEntry House 1957 16 Units CADI; Medicaid5812 Lyndale Ave S Minneapolis, MN 55419 Total Units*191 Funded through insurance. Medicare or out- of-state medicaid is not accepted. NA: Not Available Mental Illness/substance abuse treatment. Sources: Maxfield Research & Consulting LLC; Service Providers; State of MN. Funded through insurance. Substance abuse/mental health treatment center for men. Sober living homes serving men in the beginning stages of recovery. NA NA Residential treatment center for men. TABLE HS-8 TREATMENT FACILITIES & HALFWAY HOUSES NEARBY COMMUNITIES OCTOBER 2019 Substance abuse/mental health treatment center focused on the needs of the gay, lesbian, bisexual, and transgender communities. Mental health/substance abuse treatment for women. Requirements include qualifying for section 8 housing, three months of sobriety, and chemical dependency treatment. Funded through insurance or through State of Minnesota Chemical Dependency Consolidated Fund Substance abuse treatment for men. Substance abuse treatment for women. Funded through insurance or through State of Minnesota Chemical Dependency Consolidated Fund HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS MAXFIELD RESEARCH AND CONSULTING, LLC 168 Treatment Facilities & Halfway Houses in Edina’s Neighboring Communities Note: Westside Sober Living - Residential Treatment Centers (5 locations) and Westside Sober Living Homes (2 lo- cations) are not included on the map. Wayside House, Inc. Wayside House, Inc is a 20-unit facility with a mix of two-and-three-bedroom apartments. Apartments range in price from $1,043 to $1,320 and its clientele consist of women seeking mental health/substance abuse treatment. Applicant requirements include, qualifying for Sec- tion 8 housing, three months of sobriety, and chemical dependency treatment. Progress Valley Two Progress Valley locations are within the analyzed area; a substance abuse treatment center for men in Richfield and a substance abuse treatment center for women in Bloomington. The men’s Richfield location has 24 units while the women’s Bloomington location has 32 units. HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS MAXFIELD RESEARCH AND CONSULTING, LLC 169 Pride Institute Pride Institute opened in the 1980s and is a substance abuse/mental health treatment center focused on the needs of the gay, lesbian, bisexual, and transgender communities. The 42-unit community emphasizes an inclusive environment and offers outpatient treatment in addition to inpatient services. Westside Sober Living Westside Sober Living is comprised of five residential treatment centers and two sober living houses in the Twin Cities West Metro. The residential treatment centers have a combined total of 36 beds and the sober living homes total 9 beds. All facilities target men battling addiction. Hati House Inc. The Hati House, built in 1966, is in Bloomington and contains 12 units. The treatment center focuses on men battling substance abuse and mental health issues. ReEntry House ReEntry House is a 16-unit facility located in Southwest Minneapolis near the junction of Lyndale Avenue and I-35 W/MN Hwy 62. The facility treats individuals with mental illnesses and fighting substance abuse. Summary of Treatment Facilities and Halfway Houses Most of the treatment facilities and halfway houses in Edina’s neighboring communities focus on treating adult male substance abuse. However, facilities serving women such as, Wayside Inc. are also present. In addition, the analyzed area is also home to Pride Institute, a treatment center focusing on the needs of the lesbian, gay, bisexual, and transgender communities. De- spite the presence of treatment and halfway houses in nearby communities none are present within Edina, indicating a potential need in the City. Other Care Facilities Edina has one home licensed as an Intermediate Care Facility that provides housing and ser- vices to individuals with developmental disabilities, a total of six beds. Residents can live on- site independently or may receive services as needed. The facility works with each resident based on their income and financial assistance is available. There is one licensed resident hospice care home in Edina licensed for up to six beds. Most hospice care is provided at a resident’s home or in a separate nursing facility. There are how- ever, a few smaller residential homes that also offer this type of on-site residential care. HOUSING WITH SUPPORT SERVICES AND HARD TO HOUSE POPULATIONS MAXFIELD RESEARCH AND CONSULTING, LLC 170 Summary of Emergency and Supportive Housing by Type in Edina and Neighbor- ing Communities An inventory and review of specialized supportive housing facilities was completed for Edina and the neighboring communities of Eden Prairie, Bloomington, Hopkins, Minnetonka, Rich- field, St Louis Park and Southwest Minneapolis. The review emphasized the following: • Edina has one larger apartment building that provides permanent supportive housing to homeless youth and youth at risk of becoming homeless. • Additional smaller homes are in Edina that provide housing to the following populations: • Seniors needing supportive living services (i.e. board and care homes) • Individuals with developmental disabilities • Individuals requiring hospice care (limited) • The City has no emergency shelters or treatment/halfway houses. A variety of these types of housing with services facilities are present in nearby communities such as South Minne- apolis, Richfield and Bloomington. • The City has demonstrated a commitment to address youth homelessness. The only social service provider present in the City is 66 West that is targeted to homeless youth. No other shelters or supportive housing is present in the City. • Single males comprise the primary clientele for many of the supportive housing and treat- ment centers in the surrounding communities. Particularly significant is men battling sub- stance abuse. Other groups however, are also being served, including women with Way- side, INC. and the LGBTQ community through the Pride Institute. • In Edina and neighboring communities, there are 139 units of permanent supportive hous- ing and 191 units/beds in treatment facilities and halfway houses. We believe there is additional demand for small to -mid-size facilities targeted to various popu- lations to combine housing with services in a smaller, more intimate environment with greater emphasis on individual service and care. Facilities such as these usually maintain high occupan- cies and demand often exceeds the supply. HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING, LLC 171 Introduction Affordable housing is a term that has various definitions according to different people and is a product of supply and demand. According to the U.S. Department of Housing and Urban Devel- opment (HUD), the definition of housing affordability is for a household to pay no more than 30% of its annual income on housing (including utilities). Households paying more than 30% of their income for housing (either rent or mortgage) are considered cost-burdened and may have difficulty affording necessities such as food, clothing, transportation and medical care. HUD also defines various levels of cost-burden. For example, a household that pays 35% or more of their income for housing is considered “moderately” cost-burdened while a household paying 50% or more of their income on housing is considered “severely” cost-burdened. The assessment of cost burden as households paying more than 30% of their income for hous- ing costs is a benchmark that has long been accepted in academic circles. It can be traced back to a legislative amendment passed in 1969 and developed by Senator Edward Brooke. The benchmark was originally developed as a response to rent increases and complaints about ser- vices in public housing. Although there have recently been substantial discussions regarding the efficacy of using percent of income the sole determinant of housing affordability, this pro- portion continues to be widely used. Generally, housing that is income-restricted to households earning at or less than 80% of Area Median Income (AMI) is considered affordable. Many individual properties, however, have in- come restrictions set between 30% to 80% of AMI. The rent level is set based on an affordabil- ity level of up to 40% of AMI, but with a maximum income that may not be exceeded. Housing programs funded under the Low-Income Housing Tax Credit Program (LIHTC) are properties that have this type of rent structure. According to the Urban Land Institute, a national land planning policy and advocacy organization, workforce housing is defined as either rental or ownership with pricing that is affordable to households earning between 60% and 120% of AMI. Although some households with incomes at 60% of AMI may qualify for LIHTC properties, most of these households do not. In addition, public housing income requirements often all house- holds with incomes at or less than 80% of AMI to reside there. For this reason, we classify “workforce housing” as 81% to 120% of AMI. Figure 1 below summarizes income ranges by def- inition. HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING, LLC 172 Rent and Income Limits Table HA-1 shows the maximum allowable incomes by household size to qualify for affordable housing and maximum gross rents that can be charged by bedroom size in Edina (based on fig- ures applicable for Hennepin County). Income limits by household size are revised and pub- lished annually by the Department of Housing and Urban Development (HUD) and published separately by Minnesota Housing (MN Housing) based on the various housing programs they administer and the date the project was placed into service. Fair market rent is the amount that a housing unit could reasonably obtain given current market conditions, its location and other conditions if it were offered for rent. Fair Market Rent is used as a basis for determining payment standards for the Housing Choice Voucher (HCV) program and the maximum monthly subsidy for families at financially assisted housing. Definition Extemely Low Income 0%-30% Very Low Income 31%-50% Low Income 51%-80% Moderate Income / Workforce Housing 81%-120% FIGURE 1 AREA MEDIAN INCOME (AMI) DEFINITIONS Note: Minneapolis-St Paul-Bloomington, MN-WI MSA 2019 AMI = $100,000 Source: MN Housing AMI Range HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING, LLC 173 Table HA-2 shows the maximum rents by household size and AMI based on income limits illus- trated in Table HA-1. The rents on Table HA-2 are based on HUD’s allocation that monthly rents should not exceed 30% of income. In addition, the table reflects the maximum household size based on HUD guidelines of number of people per unit. For each additional bedroom, the maxi- mum household size increases by approximately two people. The Fair Market Rents shown on Table HA-2 are the final 2019 Fair Market Rents for Hennepin County as identified by HUD. Be- tween 2018 and 2019, Fair Market Rents increased from an average of $1,205 in 2018 to an av- erage of $1,278 in 2019. The largest increase was for studio units (7.3%) and the smallest was for two-bedroom units (5.7%). The average overall increase was 6.1%. 1 pph 2 pph 3 pph 4 pph 5 pph 6 pph 7 pph 8 pph 30% of AMI $21,000 $24,000 $27,000 $30,000 $32,400 $34,800 $37,200 $39,600 50% of AMI $35,000 $40,000 $45,000 $50,000 $54,000 $58,000 $62,000 $66,000 60% of AMI $42,000 $48,000 $54,000 $60,000 $64,800 $69,600 $74,400 $79,200 80% of AMI $56,000 $64,000 $72,000 $80,000 $86,400 $92,800 $99,200 $105,600 100% of AMI $70,000 $80,000 $90,000 $100,000 $108,000 $116,000 $124,000 $132,000 120% of AMI $84,000 $96,000 $108,000 $120,000 $129,600 $139,200 $148,800 $158,400 EFF 1BR 2BR 3BR 4BR 5BR 30% of AMI $525 $600 $675 $750 $810 $870 50% of AMI $875 $1,000 $1,125 $1,250 $1,350 $1,450 60% of AMI $1,050 $1,200 $1,350 $1,500 $1,620 $1,740 80% of AMI $1,400 $1,600 $1,800 $2,000 $2,160 $2,320 100% of AMI $1,750 $2,000 $2,250 $2,500 $2,700 $2,900 120% of AMI $2,100 $2,400 $2,700 $3,000 $3,240 $3,480 EFF 1BR 2BR 3BR 4BR Fair Market Rent $763 $915 $1,151 $1,636 $1,923 Sources: MHFA, HUD, Novogradac, Maxfield Research and Consulting LLC. Fair Market Rent TABLE HA-1 MHFA/HUD MAX INCOME AND RENT LIMITS MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI MSA* - 2019 Income Limits by Household Size Maximum Gross Rent *: Includes the following counties in MN; Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Scott, Sherbune, Ramsey, Washington, and Wright and the following counties in Wisconsin; Pierce and St Croix HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING 174 Unit Type 1 Min Max Min. Max.Min. Max.Min. Max.Min. Max.Min. Max.Min. Max. Studio 1 1 $525 -$525 $875 -$875 $1,050 -$1,050 $1,400 -$1,400 $1,750 -$1,750 $2,100 -$2,100 1BR 1 2 $525 -$600 $875 -$1,000 $1,050 -$1,200 $1,400 -$1,600 $1,750 -$2,000 $2,100 -$2,400 2BR 2 4 $600 -$750 $1,000 -$1,250 $1,200 -$1,500 $1,600 -$2,000 $2,000 -$2,500 $2,400 -$3,000 3BR 3 6 $675 -$870 $1,125 -$1,450 $1,350 -$1,740 $1,800 -$2,320 $2,250 -$2,900 $2,700 -$3,480 4BR 4 8 $750 -$990 $1,250 -$1,650 $1,500 -$1,980 $2,000 -$2,640 $2,500 -$3,300 $3,000 -$3,960 Sources: HUD, Novogradac, Maxfield Research and Consulting, LLC *: Includes the following counties in MN; Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Scott, Sherbune, Ramsey, Washington, and Wright and the following counties in Wisconsin; Pierce and St Croix TABLE HA-2 1 One-bedroom plus den and two-bedroom plus den units are classified as 1BR and 2BR units, respectively. To be classified as a bedroom, a den must have a window and closet. MAXIMUM RENT BASED ON HOUSEHOLD SIZE AND AREA MEDIAN INCOME MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI MSA - 2019* Note: 4-person Minneapolis-St Paul-Bloomington, MN-WI MSA AMI is $100,000 (2019) HHD Size Maximum Rent Based on Household Size (@30% of Income) 30%60%80%100%120%50% HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING, LLC 175 Housing Cost Burden Table HA-3 shows the number and percent of owner and renter households in Edina and the selected nearby cities of Eden Prairie, Edina, Hopkins, Richfield and St. Louis Park that pay 30% or more of their gross income for housing. Also shown are figures for Hennepin County, the Twin Cities Metro Area and Minnesota. The information is compiled from the American Com- munity Survey 2018 estimates, the most recent available. This information is different than the 2010 Census which separated households that paid 35% or more in housing costs. As such, the information presented in the tables may be overstated in terms of households that may be “cost burdened.” The Federal standard for affordability is 30% of income for housing costs. Without a separate break-out for households that pay 35% or more, a number of households may be choosing to pay slightly more than 30% of their gross income to obtain their desired housing. Moderately cost-burdened is defined as households paying between 35% and 49.9% of their income for housing; severely cost-burdened is defined as households paying 50% or more of their income for housing. Higher-income households that are cost-burdened may have the option of moving to lower priced housing, but lower-income households often do not. The figures in the table focus on owner households with incomes of $50,000 or less and renter households with incomes of $35,000 or less. Key findings from Table HA-3 follow. • In Edina, 21.7% of owner households and 42.3% of renter households are considered cost burdened. Edina has a higher proportion of cost burdened owner households than the PMA Remainder (17.4%) and the Twin Cities Metro Area (19.8%). • Edina has a higher proportion of cost burdened renter households (42.3%) than the PMA (36.7%) but a lower proportion than the Twin Cities Metro Area (43.2%). • Among owner households earning less than $50,000, 16.7% were cost burdened in Edina. In comparison, almost 53% (52.7%) of owner households were cost burdened in the Twin Cities Metro Area and only 12.5% were cost burdened in the PMA Remainder. • An estimated 30.3% of Edina renter households with incomes less than $35,000 were cost burdened. The number of renter households earning less than $35,000 that were cost bur- dened was higher in the Twin Cities Metro Area (74.2%) and the PMA Remainder (78.7%). HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING, LLC 176 Community No.Pct.No.Pct.No.Pct. Owner Households All Owner Households 16,983 48,795 853,235 Cost Burden 30% or greater 3,685 21.7%8,490 17.4%168,941 19.8% Cost Burden 50% or greater 1,766 10.4%3,269 6.7%60,580 7.1% Owner Households w/ incomes <$50,000 3,654 8,359 184,126 Cost Burden 30% or greater 610 16.7%1,045 12.5%97,034 52.7% Cost Burden 50% or greater 373 10.2%585 7.0%49,530 26.9% Renter Households All Renter Households 6,517 19,505 396,141 Cost Burden 30% or greater 2,754 42.3%7,158 36.7%171,133 43.2% Cost Burden 50% or greater 1,291 19.8%3,491 17.9%81,605 20.6% Renter Households w/ incomes <$35,000 1,922 5,384 172,619 Cost Burden 30% or greater 582 30.3%4,237 78.7%128,083 74.2% Cost Burden 50% or greater 381 19.8%2,950 54.8%79,232 45.9% Median Contract Rent1 Sources: American Community Survey 2018 estimates; Maxfield Research and Consulting LLC EDINA, PMA REMAINDER & TWIN CITIES METRO AREA 2019 EDINA PMA REMAINDER TWIN CITIES METRO AREA $1,047 TABLE HA-3 HOUSING COST BURDEN *Twin Cities Metro includes; Anoka County, Carver County, Dakota County, Hennepin County, Ramsey County, Scott County, & Washington County. Note: Calculations exclude households not computed and use 2019 Tenure by Housegold Income totals adjusted with 2017 percentages. $1,292 $1,161 1 Median Contract Rent 2018 (2014-2018). Data for the PMA Remainder is from 2017 as 2018 data is not available. HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING, LLC 177 The table below shows a breakdown between the number of owner and renter households by age of householder that are estimated to be paying 30% or more of their income for housing costs. As shown, the highest proportion of cost burdened households are those age 65+ for owner households and those that are under age 25 for renter households. We note that many senior households over age 75 that are renting their housing may be spending down assets for assisted living services and to avoid nursing home placement. Also, if a senior household has no mortgage, but a home valued at a high level, they may be paying real estate property taxes that place a strain on their current income level. HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING, LLC 178 Housing Programs Come Home 2 Edina The Come Home 2 Edina loan program is a loan of up to $60,000 that can be taken out to help with the cost of a home purchase. Stipulations for the loan include; a loan that is at most 25% of the purchase price, the loan recipient needs to spend a minimum of 25% of their income to- wards the purchase, a maximum allowable purchase price of $425,000, and the down payment needs to be at least $1,000. All of Edina, excluding the southwestern portion of the City, is eligi- ble for the program. Neighborhoods excluded from the program include Indian Hills, Indian Trails, Braemar Hills, Creek Valley, the western portion of The Heights, the western portion of Prospect Knolls and the western portion of Dewey Hill. Percent of % of All Number Age Grp.Renter HHs Under 25 88 44%1% 25 to 34 302 19%5% 35 to 64 823 31%13% 65+1,319 62%20% Total 2,532 --39% Percent of % of All Number Age Grp.Owner HHs Under 25 8 100%>1% 25 to 34 190 19%1% 35 to 64 1,838 18%11% 65+1,997 34%12% Total 4,033 --24% Source: US Census Bureau Owner/Renter Households By Age Cost Burdened (<30% of Income) 2019 Renter Households Owner Households HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING, LLC 179 Come Home 2 Edina Mortgage Program Eligible Areas Map Source: City of Edina HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING, LLC 180 Housing Choice Vouchers In addition to properties that provide rental assistance to tenants on-site through a project- based subsidy, “tenant-based” subsidies such as Housing Choice Vouchers, can help lower in- come households afford market-rate rental housing. The tenant-based subsidy is funded by the Department of Housing and Urban Development (HUD) and in Edina is managed by Metro HRA. Under the Housing Choice Voucher program (in the past, also referred to as Section 8) qualified households are issued a voucher that the household can take to an apartment that has rent lev- els within the payment standards set by the Department of Housing and Urban Development in concert with the local administrative agency. The household then pays approximately 30% of their adjusted gross income for rent and utilities, and the Federal government pays the remain- der of the rent to the landlord. The maximum income limit to be eligible for a Housing Choice Voucher is 50% AMI based on household size, as shown in Table HA-1. Housing Costs as Percentage of Household Income Housing costs are generally considered affordable at 30% of a household’s adjusted gross in- come. Table HA-4 on the following page illustrates key housing metrics based on housing costs and household incomes in Hennepin County for various submarkets. The table estimates the percent of submarket households that can afford rental and for-sale housing based on a 30% allocation of income to housing. Housing costs are based on the average for each submarket. Availability of data may not be always consistent between secondary published resources, but this is factored into the calculations. The housing affordability calculations assume the following: For-Sale Housing  10% down payment with good credit score  Closing costs rolled into mortgage  30-year mortgage at 4.25% interest rate  Private mortgage insurance (equity of less than 20%)  Homeowners insurance for single-family homes and association dues for townhomes  Owner household income per 2017 ACS Rental Housing  Background check on tenant to ensure credit history  Background screening for criminal backgrounds and unlawful detainers  30% allocation of income  Renter household income per 2017 ACS HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING, LLC 181 Because of the down payment requirements and generally strict underwriting criteria for a mortgage, not all households will meet the income qualifications outlined above. The for-sale affordability analysis excludes equity that a homeowner may bring with them when purchasing a new residence. • The estimated 2019 median income for all households in Edina was $107,757. Median in- comes, however, vary by tenure (owner and renter). According to 2019 estimates, the me- dian income of Edina homeowners was $129,679 compared to $59,886 for renters. • According to the estimated 2019 income distribution for Edina, 57.2% of all households and 60.4% of owner households could afford to purchase an entry-level home in Edina ($400,000). The percentage of households able to afford a home valued at $800,000 is 30.2% of all households and 32.9% of owner households. The percentage of those able to afford executive homes of $1,200,000 is 13.2% of all households and 12.3% of owner house- holds. • An estimated 57.4% of existing renter households can afford to rent a market rate one-bed- room unit in Edina ($1,186/month). The percentage of renter income-qualified households decreases to 49.4% that can afford an existing two-bedroom unit ($1,473/month) and 31.4% that can afford an existing three-bedroom unit ($2,266/month). After adjusting for new construction rental housing (properties built in 2019 and 2018), the percentage of renter households that are income-qualified decreases. An estimated 42.9% of renters would be able to afford a new market rate one-bedroom unit ($1,745 per month) while 20.5% could afford a new two-bedroom unit ($2,993 per month) and only 8.7% could afford a new three-bedroom unit ($4,728). HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING, LLC 182 For-Sale (Assumes 10% down payment and good credit) Entry-Level Move-Up Executive Entry-Level Move-Up Executive Price of House $400,000 $800,000 $1,200,000 $400,000 $600,000 $750,000 Pct. Down Payment 10.0%10.0%10.0%10.0%10.0%10.0% Total Down Payment Amt.$40,000 $80,000 $120,000 $40,000 $60,000 $75,000 Estimated Closing Costs (rolled into mortgage)$12,000 $24,000 $36,000 $12,000 $18,000 $22,500 Cost of Loan $372,000 $744,000 $1,116,000 $372,000 $558,000 $697,500 Interest Rate 4.250%4.250%4.250%4.250%4.250%4.250% Number of Pmts.449 449 449 449 449 449 Monthly Payment (P & I)-$1,656 -$3,312 -$4,968 -$1,656 -$2,484 -$3,105 (plus) Prop. Tax -$333 -$667 -$1,000 -$333 -$500 -$625 (plus) HO Insurance/Assoc. Fee for TH -$133 -$267 -$400 -$100 -$100 -$100 (plus) PMI/MIP (less than 20%)-$161 -$322 -$484 -$161 -$242 -$302 Subtotal monthly costs -$2,284 -$4,568 -$6,852 -$2,251 -$3,326 -$4,132 Housing Costs as % of Income 30%30%30%30%30%30% Minimum Income Required $91,359 $182,717 $274,076 $90,025 $133,038 $165,298 Pct. of ALL Edina HHDS who can afford1 57.2%30.2%13.2%57.8%42.9%34.1% No. of Edina HHDS who can afford1 13,283 7,017 2,965 13,421 9,951 7,912 Pct. of Edina owner HHDs who can afford2 60.4%32.9%12.3%60.9%46.6%37.0% No. of Edina owner HHDs who can afford2 10,135 5,523 2,071 10,218 7,817 6,214 No. of Edina owner HHDS who cannot afford2 6,643 11,255 14,707 6,560 8,961 10,564 Rental (Market Rate) 1BR 2BR 3BR 1BR 2BR 3BR Monthly Rent $1,186 $1,473 $2,266 $1,745 $2,993 $4,728 Annual Rent $14,232 $17,676 $27,192 $20,940 $35,916 $56,736 Housing Costs as % of Income 30%30%30%30%30%30% Minimum Income Required $47,440 $58,920 $90,640 $69,800 $119,720 $189,120 Pct. of ALL Edina HHDS who can afford3 77.9%72.1%57.5%67.0%47.1%28.8% No. of Edina HHDS who can afford3 17,491 16,748 13,358 15,549 10,934 6,688 Pct. of Edina renter HHDs who can afford4 57.4%49.4%31.4%42.9%20.5%8.7% No. of Edina renter HHDs who can afford4 3,693 3,180 2,019 2,761 1,322 563 No. of Edina renter HHDS who cannot afford4 2,746 3,259 4,420 3,678 5,117 5,877 1Move Up New Construction Home Prices Closer to $1,500,000 22018 City of Edina Permits via Met Council 3 Based on 2017 household income for ALL households adjusted for 2019. 4 Based on 2017 ACS household income by tenure (i.e. owner and renter incomes) adjusted for 2019. *Properties Built Prior to 2018 **Properties Built in 2018 and 2019 Source: Maxfield Research & Consulting, LLC Existing Rental*New Rental** TABLE HA-4 EDINA HOUSING AFFORDABILITY - BASED ON HOUSEHOLD INCOME Single-Family Townhome/Twinhome/Condo HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING, LLC 183 Metropolitan Council Affordable Housing Criteria and Benchmarks The Metropolitan Council has established criteria and allocations for the Region’s affordable housing needs and goals. Cities do not need to create enough units to meet their share of the need, but they must plan for the possibility of these units by guiding sufficient land at higher residential densities. The Metropolitan Council is also hoping to disperse low income house- holds across communities in order to prevent further segregation of classes and races. For ex- ample, in the city of Edina much of the current affordable housing stock is concentrated in the eastern portion of the city near Southdale Center. Each community’s share of the need is based on the following: • Overall forecasted growth; • Its existing affordable housing stock; and • The ratio of low-wage jobs to low-wage earning residents. From 2021 to 2030, the Region’s need for affordable housing is calculated at 37,900 units. Of that total, Edina’s need is calculated at 1,220 units. This need is divided among the following income categories: units at or less than 30% of AMI (508), between 31% and 50% of AMI (325) and between 51% and 80% of AMI (387). Edina’s existing income-restricted rental stock provides a total of 560 units at or less than 50% of AMI and another 31 units between 50% and 80% of AMI. Because of the income require- ments for most deep-subsidy units, it is difficult to separate units at less than 30% and those between 31% and 50% of AMI. Within the NOAH category, Edina’s rental stock provides 529 units affordable to households with incomes between 31% and 50% of AMI, 513 units between 50% and 60% of AMI and 1,647 units between 60% and 80% AMI. As shown on Table HA-5, Edina’s allocation is double that of St. Louis Park, less than Eden Prai- rie’s and above that of other larger Hennepin County cities including Minnetonka, Bloomington, Golden Valley, Plymouth and Maple Grove. We note that St. Louis Park has a longer history of development of affordable housing than Edina. Therefore, it is logical that St. Louis Park’s allo- cation would be much lower than Edina’s. HOUSING AFFORDABILITY MAXFIELD RESEARCH AND CONSULTING, LLC 184 2020 % of Median Median City Households <30% AMI 31%-50% AMI 51%-80%AMI Total Households HH Income Net Worth Deep-Subsidy Shallow Subsidy Edina 23,500 508 325 387 1,220 5.2%$107,749 $687,275 582 0 St. Louis Park 23,600 309 178 106 593 2.5%$77,853 $124,590 401 53 Minnetonka 24,200 508 412 144 1,064 4.4%$97,979 $454,453 232 694 Eden Prairie 27,400 802 386 220 1,408 5.1%$116,107 $554,413 309 97 Bloomington 38,600 445 246 151 842 2.2%$75,813 $216,261 827 222 Golden Valley 9,300 53 34 24 111 1.2%$98,263 $451,005 415 45 Plymouth 31,800 369 219 91 679 2.1%$105,132 $462,483 163 221 Eagan 27,400 232 100 140 472 1.7%$89,097 $261,551 0 262 Maple Grove 26,600 694 310 184 1,188 4.5%$108,696 $452,164 100 329 Sources: Metropolitan Council; Maxfield Research and Consulting LLC Affordable Allocation Affordable Units METROPOLITAN COUNCIL AFFORDABLE HOUSING ALLOCATION 2021 TO 2030 TABLE HA-5 HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 185 Introduction Previous sections of this study analyzed the existing housing supply and the growth and demo- graphic characteristics of the population and household base in Edina. This section of the re- port presents our estimates of housing demand in Edina from 2020 to 2030 and from 2030 to 2040. Demographic Profile and Housing Demand The demographic profile of a community affects housing demand and the types of housing that are needed. The housing life-cycle stages are: 1. Entry-level householders • Often prefer to rent basic, inexpensive apartments • Usually singles or couples in their early 20’s without children • Will often “double-up” with roommates in apartment setting 2. First-time homebuyers and move-up renters • Often prefer to purchase modestly priced single-family homes or rent more upscale apartments • Usually married or cohabiting couples, in their mid-20's or 30's, some with children, but most are without children 3. Move-up homebuyers • Typically prefer to purchase newer, larger, and therefore more expen- sive single-family homes • Typically, families with children where householders are in their late 30's to 40's 4. Empty-nesters (persons whose children have grown and left home) and never-nesters (persons who never have children) • Prefer owning but will consider renting their housing • Some will move to alternative lower-maintenance housing products • Generally, couples in their 50's or 60's 5. Younger independent seniors • Prefer owning but will consider renting their housing • Will often move (at least part of the year) to retirement havens in the Sunbelt and desire to reduce their responsibilities for upkeep and maintenance • Generally, in their late 60's or 70's HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 186 6. Older seniors • May need to move out of their single-family home due to physical and/or health constraints or a desire to reduce their responsibilities for upkeep and maintenance • Generally single females (widows) in their mid-70's or older Demand for housing can come from several sources including household growth, changes in housing preferences and replacement need. Household growth necessitates building new housing unless there is enough desirable vacant housing available to absorb the increase in households. Demand is also affected by shifting demographic factors such as the aging of the population, which dictates the type of housing preferred. New housing to meet replacement need is required, even in the absence of household growth, when existing units no longer meet the needs of the population and when renovation is not feasible because the structure is physi- cally or functionally obsolete. Rural areas tend to have higher proportions of younger households that own their housing than in the larger growth centers or metropolitan areas such as the Twin Cities Metro Area. In addi- tion, senior households tend to move to alternative housing at an older age. These conditions are a result of housing market dynamics, which typically provide more affordable single-family housing for young households and a scarcity of senior housing alternatives for older house- holds. The graphic on the following page provides greater detail of various housing types supported within each housing life cycle. Information on square footage, average bedrooms/bathrooms, and lot size is provided on the subsequent graphic. Housing Demand Overview The previous sections of this assessment focused on demographic and economic factors driving demand for housing in Edina. In this section, we utilize findings from the economic and demo- graphic analyses to calculate demand for new general occupancy housing units in Edina. The ability to accommodate new construction in Edina will be constrained by the following factors: availability of land for new residential development, a predisposition toward increased density because of the scarcity of available land and the cost of land for new development. These fac- tors cause new construction single-family and owned multifamily (townhomes and condomini- ums) to be priced at the executive level, pricing at $750,000 and above for new condominiums and townhomes (primarily detached villas or twinhomes) and $900,000 and above for new sin- gle-family homes. Housing markets are driven by a range of supply and demand factors that vary by location and submarket. The following points outline several of the key variables driving housing demand. HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 187 Age Student Rental 1st-time Move-up 2nd Empty Nester/Senior Cohort Housing Housing Home Buyer Home Buyer Home Buyer Downsizer Housing 18-24 18 - 24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85+ Source: Maxfield Research & Consulting, LLC DEMOGRAPHICS & HOUSING DEMAND 18-34 65-79 25-39 30-49 40-64 55-74 55+ & 65+ HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 188 Demographics Demographics are major influences that drive housing demand. Household formations are criti- cal (natural growth, immigration, etc.) as are household types, size, age of householders, in- comes, etc. Edina is aging, but as empty-nesters and seniors leave their single-family homes, they are often replaced by younger households, a portion of which will have families. The pro- portion of households with children however, continues to decrease overall in the Twin Cities Metro Area, except for the far outlying suburban communities outside of the core seven coun- ties. In some areas, there has recently been an uptick in the number of children as this housing turnover occurs. Housing Types Target Market/Demographic Unit/Home Characteristics Lot Sizes/Units Per Acre1 Entry-level single-family First-time buyers: Families, couples w/no children, some singles 1,200 to 2,200 sq. ft. 2-4 BR | 2 BA 65'/+ wide lot 2.5-3.0 DU/Acre Move-up single-family Step-up buyers: Families, couples w/no children 1,800 sq. ft. + 3-4 BR | 2-3 BA 65'/+ wide lot 2.5-3.0 DU/Acre Executive Single family Step-up buyers: Families, couples w/no children 2,500 sq. ft. + 3-4 BR | 2-3 BA 85'/+ wide lot 2.5-3.0 DU/Acre Small-lot single-family First-time & move-down buyers: Families, couples w/no children, empty nesters, retirees 1,200 to 2,500 sq. ft. 3-4 BR | 2-3 BA 40' to 60' wide lot 5.0-8.0 DU/Acre Entry-Level townhomes First-time buyers: Singles, couples w/no children 1,100 to 1,600 sq. ft. 2-3 BR | 1.5BA+ 30'-38'/+ wide lot 6.0-12.0 DU/Acre Move-up townhomes First-time & step-up buyers: Singles, couples, some families, empty-nesters 1,200 to 2,000 sq. ft. 2-3 BR | 2 BA+ 40'-50'/ wide lot 6.0-8.0 DU/Acre Executive townhomes/twinhomes Step-up buyers: Empty-nesters, retirees 1,600+ sq. ft. 3 BR+ | 2 BA+ 40'-55'/ wide lot 4.0-6.0 DU/Acre Detached Townhome Step-up buyers: Empty nesters, retirees, some families 1,800+ sq. ft. 3 BR+ | 2 BA+ 50'-55'/ wide lot 4.0-6.0 DU/Acre Apartment-style rental housing Singles, couples, single-parents, some families, seniors 500 to 1,250 sq. ft. 1-3 BR | 1-2 BA Low-rise: 18.0-24.0 DU/Acre Mid-rise: 25.0+ DU/Acre Hi-rise: 75.0+ DU/Acre Townhome-style rental housing Single-parents, families w/children, empty nesters 900 to 1,700 sq. ft. 2-4 BR | 1-2 BA 8.0-12.0 DU/Acre BothSenior housing Retirees, Seniors 400 to 1,500 sq. ft. Suites - 2BR | 1-2 BA Varies considerably based on senior product type 1 Dwelling units(DU) per acre expressed in net acreage (minus right-of-way) Source: Maxfield Research & Consulting, LLC TYPICAL HOUSING TYPE CHARACTERISTICS Condominiums First-time & step-up buyers: Singles, couples, empty-nesters, retirees 800 to 2,000 sq. ft. 1-2 BR | 1-2BA Low-rise: 18.0-24.0 DU/Acre Mid-rise: 25.0+ DU/Acre Hi-rise: 75.0+ DU/Acre Student rental housing College students, mostly undergraduates 450 to 1,400 sq. ft. 1-4 BR | 1-2 BA Low-rise: 18.0-24.0 DU/Acre Mid-rise: 25.0+ DU/Acre Hi-rise: 50.0+ DU/AcreFor-Sale HousingRental Housing HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 189 Economy & Job Growth The economy and housing market are intertwined; the health of the housing market affects the broader economy and vice versa. Housing market growth depends on job growth (or the pro- spect of); jobs generate income growth which results in the formation of more households and can stimulate household turnover. Historically low unemployment rates have driven both exist- ing home purchases and new-home purchases. Lack of job growth leads to slow or diminishing household growth, which in-turn relates to reduced housing demand. Additionally, low income growth results in fewer move-up buyers which results in diminished housing turnover across all income brackets. Edina continues to be a leader in employment and the substantial amount of employment that exists in Edina and the immediately surrounding communities continues to support residential demand in the City. Consumer Choice/Preferences A variety of factors contribute to consumer choice and preferences. Many times, a change in family status is the primary factor for a change in housing type (i.e. growing families, empty- nest families, etc.). However, housing demand is also generated from the turnover of existing households who decide to move for a range of reasons. Some households may want to move- up, downsize, change their tenure status (i.e. owner to renter or vice versa), or simply move to a new location. Recently, there has been a modest increase in the proportion of households that elect to rent their housing, either younger households or older households. However, in- creasing demand in the owned housing sector, the high price of new construction and a prefer- ence for households to live closer into the core, has resulted in a low supply of existing homes on the market and prices for those homes being bid up or having multiple bid offers. Homes priced to the market are selling at times that are generally 20 days or less in desirable areas. Supply (Existing Housing Stock) The stock of existing housing plays a crucial component in the demand for new housing. There are a variety of unique household types and styles, not all of which are desirable to today’s con- sumers. The age of the housing stock is an important component for housing demand, as com- munities with aging housing stocks have higher demand for remodeling services, replacement new construction, or new home construction as the current inventory may not provide the sup- ply that consumers seek. Inner-ring suburbs such as Edina have an older housing that results in higher demand for remodeling services and infill redevelopment. Pent-up demand may also exist if supply is unavailable as households may postpone a move un- til new housing becomes available. HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 190 Housing Finance Household income is the fundamental measure that dictates what a householder can afford to pay for housing costs. According to the U.S. Department of Housing and Urban Development (HUD), the definition of affordability is for a household to pay no more than 30% of its annual income on housing (including utilities). Families who pay more than 30% of their income for housing (either rent or mortgage) are considered cost burdened and may have difficulty afford- ing necessities such as food, clothing, transportation and medical care. After the Great Recession lenders “tightened the belts” on mortgage lending and it was difficult for many buyers to obtain financing. The ability of buyers to obtain mortgage financing has lightened as lenders have eased restrictions that had been in place since the recession. Alt- hough mortgage interest rates have recently increased, rates are still very low compared to pre- vious decades. Credit requirements for buyers remain stricter than prior to the Recession. Mobility Demand is generally fluid between communities in the Twin Cities Metro Area and is impacted by development activity in neighboring communities in addition to throughout the core seven county metro area in general. Estimated Demand for For-Sale Housing Table HD-1 presents our demand calculations for general occupancy for-sale housing in Edina between 2020 to 2025 while tables HD-2 and HD-3 present demand calculations between 2025 and 2030 and 2030 and 2040, respectively. The 65 and older cohort is typically not a target market for new single-family homes as many of these households will remain in their single-family homes or may relocate to owned multifamily or a senior housing option. F or the purpose of this analysis, we include all households under age 65 and 50% of households over age 65. Using household income by age of householder data, Edina is expected to add 94 new households from 2020 to 2025, 126 households from 2025 to 2030 and 992 households from 2030 to 2040. We estimate that 68% would choose to own their housing (a decrease based on trends), which produces demand for 888 new general occupancy for-sale housing units from 2020 to 2025. Additional demand is also forecast from existing Edina households through turnover. There are an estimated 16,928 owner-occupied households are in Edina in 2020. Based on mobility data from the Census Bureau, an estimated 5% of owner households will turn over in a ten-year period, resulting in 846 existing households projected to turn over. Finally, we estimate 15% of the existing owner households would seek new for-sale housing, resulting in demand for 127 for-sale units to 2025. HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 191 Next, we estimate that 30% of the total demand for new for-sale units in Edina will come from people currently living outside of the City. A portion of this market will be former residents of the area, such as “snow-birds” heading south for the winters. Adding demand from outside Edina to the existing demand potential, results in a total estimated demand for 269 for-sale housing units to 2025. Based on land availability, building trends, and demographic shifts (increasing older adult popu- lation), we estimate that 30% of the for-sale owners will prefer traditional single-family product types while the remaining 30% will prefer a maintenance-free multi-family product (i.e. twin homes, townhomes, or condominiums). The identified platted lots that are under construction or approved are subtracted from the total. After subtracting the current lot supply (seven SF lots in Blake Woods and 0 MF units), demand remains for 47 single-family lots and 215 multifamily lots/units to 2025. Demand is projected to 62 single-family lots and 146 multifamily lots/units by 2030 and increase to 92 single-family lots and 831 multifamily lots/units by 2040. HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 192 Projected HH growth in Edina 2020 to 2025¹ (times) % propensity to own2 x (equals) Projected demand from new HH growth = Number of owner households in Edina (2020)3 (times) Estimated percent of owner turnover 4 x (equals) Total existing households projected to turnover = (times) Estimated percent desiring new housing x (equals) Demand from existing households (equals) Total demand from HH growth and existing HHs 2020 to 2025 = (times) Demand from outside Edina (30%) (equals) Total demand potential for ownership housing, 2020 to 2025 (times) Percent desiring for-sale single-family vs. multifamily5 x 20%80% (equals) Total demand potential for new single-family & multifamily for-sale housing =54 215 (minus) Units under construction or approved platted lots (undeveloped and developed lots)6 -7 0 (equals) Excess demand for new general occupancy for-sale housing =47 215 2 Pct. of owner households (2018 ACS, and Maxfield Research and Consulting LLC) 3 Estimate based on ESRI, US Census Bureau and Maxfield Research and Consulting LLC 4 Based on average annual turnover from 2018 American Community Survey for households moving over a 5-year period. 5 Based on preference for housing type and land availability * Multi-family demand includes demand for townhomes, twinhomes, detached townhomes and condominium units. Sources: City of Edina; U.S. Census Bureau; Maxfield Research and Consulting LLC 1 Estimated household growth based on projections for under 65 and 50% of age 65+ households 15% 127 188 30% 269 Single Family Multi- Family* 6 Approved platted lot data does not account for the scattered lot supply which includes individual lots and lots in older non- marketing subdivisions. 846 TABLE HD 1 FOR-SALE HOUSING DEMAND EDINA 2020 to 2025 Demand from Projected Household Growth 94 65% 61 Demand from Existing Owner Households 16,928 5% HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 193 Projected HH growth in Edina 2025 to 2030¹ (times) % propensity to own2 x (equals) Projected demand from new HH growth = Number of owner households in Edina (2025)3 (times) Estimated percent of owner turnover4 x (equals) Total existing households projected to turnover = (times) Estimated percent desiring new housing x (equals) Demand from existing households (equals) Total demand from HH growth and existing HHs 2025 to 2030 = (times) Demand from outside Edina (30%) (equals) Total demand potential for ownership housing, 2025 to 2030 (times) Percent desiring for-sale single-family vs. multifamily5 x 20%80% (equals) Total demand potential for new single-family & multifamily for-sale housing =62 246 (minus) Units under construction or approved platted lots (undeveloped and developed lots)6 -0 0 (equals) Excess demand for new general occupancy for-sale housing =62 246 2 Pct. of owner households (2018 ACS, and Maxfield Research and Consulting LLC) 3 Estimate based on ESRI, US Census Bureau and Maxfield Research and Consulting LLC 4 Based on average annual turnover from 2018 American Community Survey for households moving over a 5-year period. 5 Based on preference for housing type and land availability * Multi-family demand includes demand for townhomes, twinhomes, detached townhomes, and condominium units. 1 Estimated household growth based on projections for under 65+ and 50% of 65+ households 216 30% 308 Single Family Multi- Family* 6 Approved platted lot data does not account for the scattered lot supply which includes individual lots and lots in older non- marketing subdivisions. Source: Maxfield Research and Consulting LLC TABLE HD 2 FOR-SALE HOUSING DEMAND EDINA 2025 to 2030 Demand from Projected Household Growth 126 65% 82 Demand from Existing Owner Households 17,829 5% 891 15% 134 HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 194 Projected HH growth in Edina 2030 to 2040¹ (times) % propensity to own2 x (equals) Projected demand from new HH growth = Number of owner households in Edina (2030)3 (times) Estimated percent of owner turnover4 x (equals) Total existing households projected to turnover = (times) Estimated percent desiring new housing x (equals) Demand from existing households (equals) Total demand from HH growth and existing HHs 2030 to 2040 = (times) Demand from outside Edina (20%) (equals) Total demand potential for ownership housing, 2030 to 2040 (times) Percent desiring for-sale single-family vs. multifamily5 x 10%90% (equals) Total demand potential for new single-family & multifamily for-sale housing =92 831 (minus) Units under construction or approved platted lots (undeveloped and developed lots)6 -0 0 (equals) Excess demand for new general occupancy for-sale housing =92 831 2 Pct. of owner households (2018 ACS, and Maxfield Research and Consulting LLC) 3 Estimate based on ESRI, US Census Bureau and Maxfield Research and Consulting LLC 4 Based on average annual turnover from 2018 American Community Survey for households moving over a 5-year period. 5 Based on preference for housing type and land availability * Multi-family demand includes demand for townhomes, twinhomes, detached townhomes, and condominium units. 1 Estimated household growth under age 65 and 50% of age 65+ 6 Approved platted lot data does not account for the scattered lot supply which includes individual lots and lots in older non- marketing subdivisions. Source: Maxfield Research and Consulting LLC 10% 94 739 20% 923 Single Family Multi- Family* 938 TABLE HD 3 FOR-SALE HOUSING DEMAND EDINA 2030 to 2040 Demand from Projected Household Growth 992 65% 645 Demand from Existing Owner Households 18,768 5% HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 195 Estimated Demand for General-Occupancy Rental Housing Table HD-4 presents our calculation of general-occupancy rental housing demand in Edina be- tween 2020 and 2025 while Tables HD-5 and HD-6 present demand calculations between 2025 and 2030 and 2030 and 2040, respectively. The analysis identifies potential demand for rental housing that is generated from new households and turnover households. A portion of the de- mand will be drawn from existing households in Edina that want to upgrade their housing situa- tions. Although the 65 and older cohort is not typically a primary target market for new general occu- pancy rental housing, the rising cost of owned housing and senior options has encouraged more seniors to move into the general occupancy market before considering age-restricted options. As such, we include all age groups in the demand calculation. At a propensity to rent of 30% of the total, demand from household growth equals 375 units between 2020 and 2025. Demand will also occur from existing renter households through turnover. As of 2020, there are an estimated 6,517 renter households in Edina. Based on mobility data from the Census Bureau, an estimated 80% of renter households will turn over in a ten-year period, resulting in 5,214 existing households projected to turn over. Finally, we estimate 20% of the existing renter households will seek new rental housing, resulting in demand for 1,043 rental units to 2025. Next, we estimate that 30% of the total demand for new rental units in Edina will come from people currently living outside of the Market Area. Adding demand from outside Edina to the existing demand potential, results in a total estimated demand for 1,418 rental housing units to 2025. Based on a review of rental household incomes and sizes and monthly rents at existing projects, we estimate that approximately 15% of the total demand will be for subsidized housing (50% or less AMI), 30% will be for affordable housing (51% to 80% AMI) and 55% will be for market rate housing (80% AMI or above and non-income restricted). Next, we subtract housing developments under construction or pending, since these projects will satisfy some of the calculated demand for general occupancy rental housing. There are five pending developments that will offer affordable rental units. They include: the Lorient (3 units), Millennium at Southdale Phase One & Two (18 units), 4100 76th Street West (70 units), 7001 France Avenue (90 units) and Amundson Flats (62 units). There are four pending market rate developments, which include Millennium at Southdale (357 units), Promenade Residences (186 units), The Lorient (43 units), and 7001 France Avenue (135 units). Additional rental units being developed in nearby cities such as Minnetonka, Bloomington, Rich- field and St. Louis Park may capture a portion of the demand allocated to Edina. Overall, addi- tional rental units coming on-line in the market within Edina’s Primary Market Area is likely to create additional temporary softness in the market, raising vacancy rates in the short-term. HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 196 After subtracting units under construction or pending results in demand for 284 subsidized units, 397 affordable units and 430 market rate units between 2020 and 2025. Demand is projected to increase to 258 subsidized units, 517 affordable units and 947 market rate units between 2025 and 2030 and to 327 subsidized units, 655 affordable units and 1,200 market rate units between 2030 and 2040. Projected HH growth in Edina 2020 to 2025¹ (times) Estimated % to be renting their housing2 x (equals) Projected demand from new HH growth = Number of renter HHs in Edina (2020)3 (times) Estimated percent of renter turnover 4 x (equals) Total existing households projected to turnover = (times) Estimated percent desiring new rental housing x (equals) Demand from existing households (equals) Total demand from HH growth and existing HHs 2020 to 2025 = (times) Demand from outside Edina (equals) Total demand potential for rental housing, 2020 to 2025 Deep Shallow Market Subsidy Subsidy Rate (times) Percent of rental demand by product type5 x 15%30%55% (equals) Total demand potential for general-occupancy rental housing units =304 608 1,114 (minus) Units under construction or pending6 -20 211 684 (equals) Excess demand for new general occupancy rental housing =284 397 430 Source: Maxfield Research and Consulting LLC 20% 1,043 1,418 30% 2,025 3 Estimate based on 2018 ACS renter households adjusted for current estimates 2 Pct. of renter households under age 65 adjusted to 2020. 4 Based on on turnover from 2018 American Community Survey for renter households moving over 5-year period. 5 Based on the combination of current rental product and household incomes of area renters (non-senior households) 6 Pending/proposed/under construction at 95% occupancy. 1 Estimated household growth based on projections. Some totals do not add exactly due to rounding. 5,214 TABLE HD-4 RENTAL HOUSING DEMAND EDINA 2020 to 2025 Demand from Projected Household Growth 1,250 30% 375 Demand from Existing Renter Households 6,517 80% HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 197 Projected HH growth in Edina 2025 to 2030 (times) Estimated % to be renting their housing2 x (equals) Projected demand from new HH growth = Number of renter HHs in Edina (2025)3 (times) Estimated percent of renter turnover4 x (equals) Total existing households projected to turnover = (times) Estimated percent desiring new rental housing x (equals) Demand from existing households (equals) Total demand from HH growth and existing HHs 2025 to 2030 = (times) Demand from outside Edina (equals) Total demand potential for rental housing, 2025 to 2030 Deep Shallow Market Subsidy Subsidy Rate (times) Percent of rental demand by product type5 x 15%30%55% (equals) Total demand potential for general-occupancy rental housing units =258 517 947 (minus) Units under construction or pending6 -0 0 0 (equals) Excess demand for new general occupancy rental housing =258 517 947 5,537 15% 831 2 Pct. of renter households adjusted for 2025; TABLE HD-5 RENTAL HOUSING DEMAND EDINA 2025 to 2030 Demand from Projected Household Growth 6 Pending/proposed/under construction at 95% occupancy. Source: Maxfield Research and Consulting LLC 1,250 30% 375 Demand from Existing Renter Households 1 Estimated household growth based on projections as adjusted by Maxfield Research and Consulting LLC 1,206 30% 1,722 6,921 3 Estimate based on 2018 ACS renter households adjusted for current estimates 4 Based on on turnover from 2018 American Community Survey for renter households moving over 5-year period. 5 Based on the combination of current rental product and household incomes of area renters (non-senior households) 80% HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 198 Projected HH growth in Edina 2030 to 2040 (times) Estimated % to be renting their housing2 x (equals) Projected demand from new HH growth = Number of renter HHs in Edina (2030)3 (times) Estimated percent of renter turnover4 x (equals) Total existing households projected to turnover = (times) Estimated percent desiring new rental housing x (equals) Demand from existing households (equals) Total demand from HH growth and existing HHs 2030 to 2040 = (times) Demand from outside Edina (equals) Total demand potential for rental housing, 2030 to 2040 Deep Shallow Market Subsidy Subsidy Rate (times) Percent of rental demand by product type5 x 15%30%55% (equals) Total demand potential for general-occupancy rental housing units =327 655 1,200 (minus) Units under construction or pending6 -0 0 0 (equals) Excess demand for new general occupancy rental housing =327 655 1,200 Source: Maxfield Research and Consulting LLC 1 Estimated household growth based on projections as adjusted by Maxfield Research and Consulting LLC 2 Pct. of renter households adjusted for forecasts 3 Estimate based on 2018 ACS renter households adjusted for current estimates 4 Based on on turnover from 2018 American Community Survey for renter households moving over 5-year period. 5 Based on the combination of current rental product and household incomes of area renters (non-senior households) 6 Pending/proposed/under construction at 95% occupancy. 35% 420 Demand from Existing Renter Households 7,606 80% 6,085 20% 1,217 1,637 25% 2,183 1,200 TABLE HD-6 RENTAL HOUSING DEMAND EDINA 2030 to 2040 Demand from Projected Household Growth HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 199 Demand for Active Adult (55+) Housing Table HD-7 presents our demand calculations for market rate active adult/few services housing in Edina for 2020 and 2025 while Tables HD-8 and HD-9 present demand calculations for 2025 and 2030 and 2030 and 2040, respectively. In order to determine demand for active adult housing, the potential market is reduced to those households that are both age and income qualified. The age-qualified market is defined as older adults age 55 and older, although most of these properties will primarily attract house- holds age 65 and older. We calculate that the minimum income needed to afford monthly rents is $50,000 or more plus homeowner households with incomes between $40,000 and $50,000 who would be able to supplement their incomes with the proceeds from a home sale. We estimate the number of age/income-qualified senior households in Edina in 2020 to be 10,832 households. Adjusting to include appropriate long-term capture rates for each age cohort (1.0% of house- holds age 55 to 64, 6.5% of households age 65 to 74, and 13.5% of households age 75 and over) results in a market rate demand potential for 717 active adult (55+) units in 2020. The demand is apportioned between ownership and rental housing. Based on the age distribu- tion, homeownership rates and current product available in Edina, we estimate that 60% of Edina’s demand will be for adult ownership housing (430 units) and 40% will be for rental hous- ing (287 units). Some additional demand will come from outside Edina. We estimate that 30% of the demand will be generated by seniors currently residing outside Edina. This demand will consist primarily of parents of adult children living in Edina, individuals who live just outside Edina and have an orientation to the area, as well as former residents who desire to return. Together, the de- mand from Edina seniors and demand from seniors who would relocate to Edina results in a de- mand for 614 ownership and 409 market rate active adult units in 2020. Next, we subtract existing competitive market rate units (minus a vacancy factor of 5% to allow for sufficient consumer choice and turnover) from the owner and rental demand. Subtracting the existing competitive market rate units results in total demand potential for 126 adult owner-occupied units and 252 active adult rental units. Adjusting for inflation, we have estimated that households with incomes of $55,000 or more and homeowners with incomes of $45,000 to $54,999 would income qualify for market rate in- dependent senior housing in 2030. These figures increase to households with incomes of $60,000 or more and homeowners with incomes of $50,000 to $60,000 in 2040. Considering the growth in the older adult base and the income distribution of the older adult population in 2025, the methodology estimates demand for 219 adult owner-occupied units and 314 active adult rental units in Edina . The demand is cumulative, meaning any additional units developed HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 200 over the period would reduce the demand in 2025. Demand in 2030 is identified at 220 active adult owned units and 315 active adult rental units and increases to 228 owned and 320 rental units by 2040. 55-64 65-74 75+55-64 65-74 75+ # of Households w/ Incomes of $50,000 or More 4,007 3,072 2,711 3,817 3,722 3,562 (plus) # of Households w/ Incomes of $40,000 to $49,9991 +150 252 524 103 239 552 (times ) Homeownership Rate x 82%82%67%82%82%67% (equals) Potential Market =123 207 351 =84 196 370 (equals)Total Potential Market Base =4,130 3,279 3,423 =3,901 3,918 3,932 (times) Potential Capture Rate x 1.0%6.5%13.5%x 1.0%6.5%13.5% (equals) Demand Potential =41 213 462 =39 255 531 Total Market Rate Demand Potential =717 =824 Ownership Rental Ownership Rental (times) % for ownership/rental formats x 60%x 40%x 60%x 40% (equals) Demand potential =430 287 =495 =330 (plus) Demand from Outside Market Area (30%)+184 +123 +212 +141 (equals) Total Demand Potential =614 =409 =707 =471 (minus) Existing Competitive and Pending Units2 -488 -157 -488 -157 (equals) Excess Demand for Market Rate Active Adult Units =126 =252 =219 =314 1 2025 income-qualified figures ($50K or more + homeowners w/ inc. of $40K - $50K) Source: Maxfield Research and Consulting Inc. Age of Householder Age of Householder 2 Competitive existing and pending units include adult rental/ownership at 95% occupancy (market equilibrium). TABLE HD-7 MARKET RATE ACTIVE ADULT/FEW SERVICES HOUSING DEMAND EDINA 2020 and 2025 2020 2025 HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 201 55-64 65-74 75+55-64 65-74 75+ # of Households w/ Incomes of $50,000 or More 3,817 3,722 3,562 3,634 3,718 3,608 (plus) # of Households w/ Incomes of $40,000 to $49,9991 +103 239 552 112 241 536 (times ) Homeownership Rate x 82%82%67%80%80%65% (equals) Potential Market =84 196 370 =90 193 348 (equals)Total Potential Market Base =3,901 3,918 3,932 =3,724 3,911 3,956 (times) Potential Capture Rate x 1.0%6.5%13.5%x 1.0%6.5%13.5% (equals) Demand Potential =39 255 531 =37 254 534 Total Market Rate Demand Potential =824 =826 Ownership Rental Ownership Rental (times) % for ownership/rental formats x 60%x 40%x 60%x 40% (equals) Demand potential =495 330 =495 =330 (plus) Demand from Outside Market Area (30%)+212 +141 +212 +142 (equals) Total Demand Potential =707 =471 =708 =472 (minus) Existing Competitive and Pending Units2 -488 -157 -488 -157 (equals) Long-term Demand =219 =314 =220 =315 1 2030 income-qualified figures adjusted for inflation ($55K or more + homeowners w/ inc. of $45K - $55K) Source: Maxfield Research and Consulting Inc. Age of Householder Age of Householder 2 Competitive existing and pending units include adult rental/ownership at 95% occupancy (market equilibrium). TABLE HD-8 MARKET RATE ACTIVE ADULT/FEW SERVICES HOUSING DEMAND EDINA 2025 & 2030 2025 2030 HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 202 Demand for Subsidized/Affordable Active Adult Housing Table HD-10 presents our demand calculations for subsidized/affordable active adult (55+ or 62+) housing in Edina in 2020 and 2025 while Tables HD-11 and HD-12 present demand calcula- tions for 2025 and 2030 and 2030 and 2040, respectively. In order to arrive at the potential age and income qualified base for low income and affordable housing, we include all older adult (55+) households with incomes less than $48,000. We ex- clude 55+ homeowner households with incomes between $21,000 and $47,999, as these households are most likely to have additional equity that could be converted to monthly in- come following the sales of their single-family homes. Households in need-based situations (either requiring services or financial assistance) more readily move to housing alternatives than those in non-need-based situations. Therefore, the capture rate among each age group is higher than for market rate housing. Capture rates are 55-64 65-74 75+55-64 65-74 75+ # of Households w/ Incomes of $55,000 or More 3,634 3,718 3,608 3,444 3,391 3,603 (plus) # of Households w/ Incomes of $45,000 to $54,9991 +112 241 536 116 224 511 (times ) Homeownership Rate x 80%80%65%78%78%62% (equals) Potential Market =90 193 348 =90 175 317 (equals)Total Potential Market Base =3,724 3,911 3,956 =3,534 3,566 3,920 (times) Potential Capture Rate x 1.0%6.5%13.5%x 1.0%6.5%14.5% (equals) Demand Potential =37 254 534 =35 232 568 Total Market Rate Demand Potential =826 =835 Ownership Rental Ownership Rental (times) % for ownership/rental format x 60%x 40%x 60%x 40% (equals) Demand potential =495 330 =501 =334 (plus) Demand from Outside Market Area (30%)+212 +142 +215 +143 (equals) Total Demand Potential =708 =472 =716 =477 (minus) Existing Competitive and Pending Units2 -488 -157 -488 -157 (equals) Long-term Demand =220 =315 =228 =320 1 2040 income-qualified figures adjusted for inflation ($60K or more + homeowners w/ inc. of $50K - $60K) Source: Maxfield Research and Consulting Inc. Age of Householder Age of Householder 2 Competitive existing and pending units include adult rental/ownership at 95% occupancy (market equilibrium). TABLE HD-9 MARKET RATE ACTIVE ADULT/FEW SERVICES HOUSING DEMAND EDINA 2030 & 2040 20402030 HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 203 employed at 5.0% for households age 55 to 64, 15.0% for households age 65 to 74 and 20.0% for households age 75 and older. Seniors in need-based situations are less selective when securing housing than those in non- need-based situations. Typically, demand is high for these developments because households seeking assisted housing are more likely to search in a broader geographic area. Using the methodology described above results in a demand potential for 978 subsidized or af- fordable senior units. After adjusting for household incomes, demand results for 304 subsi- dized units and 294 affordable units. Next we subtract existing competitive units from the overall demand. There are 381 existing subsidized independent units in the Market Area - minus a vacancy factor of 3% to allow for suf- ficient consumer choice and turnover). After subtracting these units, demand remains for 304 subsidized and 294 affordable age-restricted units in 2020. Adjusting for inflation, we estimate that households with incomes up to $51,700 would be can- didates for financially-assisted independent housing in 2025. We reduce the potential market by homeowner households earning between $24,700 and $51,699 that would exceed income- restrictions once equity from their home sales is converted to monthly income. In 2030, house- holds with incomes up to $55,700 would be candidates for financially-assisted independent housing. The potential market is reduced by homeowners earning between $28,700 and $55,699. By 2040 income qualified households are those earning less than $64,650. The market is reduced by homeowners earning between $38,000 and $64,649. Following the same methodology, we project demand in Edina for 165 subsidized units and 234 affordable units in 2025. This increases to 289 subsidized units and 287 affordable units in 2030 and 396 subsidized units and 518 affordable units in 2040. HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 204 55-64 65-74 75+55-64 65-74 75+ # of Households w/ Incomes $48,000 or Less1 672 1,036 2,416 469 981 2,468 (minus) Owner HHs w/Incomes of $21,000 to $47,999 -222 346 882 -273 627 1,378 (times ) Homeownership Rate x 82%82%67%x 82%82%67% (equals) Total Potential Market Base =490 752 1,825 =245 467 1,545 (times) Potential Capture Rate x 5.0%15.0%30.0%x 5.0%15.0%30.0% (equals) Demand Potential =24 113 548 =12 70 463 (equals) Potential Demand from Residents =685 546 +294 +234 =978 =780 Deep-Shallow Deep-Shallow Subsidy Subsidy Subsidy Subsidy (times) % by Product Type x 70%x 30%x 70%x 30% (equals) Demand Potential by Product Type =685 =294 =546 =234 (minus) Existing and Pending Active Adult Units2 -381 -0 -381 -0 (equals) Excess Demand for Aff/Sub Units =304 =294 =165 =234 Source: Maxfield Research and Consulting LLC Note: Individuals 18 and over with a qualified disability are eligible to reside in most units under the HUD Section 8 program. ² Existing units are deducted at market equilibrium, or 97% occupancy. Age of Householder Age of Householder (plus) Demand from outside Edina (30%) (equals) Total Demand Potential ¹ 2025 calculations define income-qualified households as all households with incomes less than $51,700. Homeowner households with incomes between $24,700 and $51,699 are excluded from the market potential for financially-assisted housing. TABLE HD-10 DEEP-SUBSIDY/SHALLOW SUBSIDY ACTIVE ADULT HOUSING DEMAND EDINA 2020 and 2025 20252020 HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 205 55-64 65-74 75+55-64 65-74 75+ # of Households w/ Incomes $51,700 or Less1 469 981 2,468 512 1,107 2,857 (minus) Owner HHs w/Incomes of $24,700 to $51,699 -273 627 1,378 286 650 1,485 (times ) Homeownership Rate x 82%82%67%x 80%80%65% (equals) Total Potential Market Base =245 467 1,545 =283 587 1,892 (times) Potential Capture Rate x 5.0%15.0%30.0%x 5.0%15.0%30.0% (equals) Demand Potential =12 70 463 =14 88 568 (equals) Potential Demand from Residents =546 670 +234 +287 =780 =957 Deep-Shallow Deep-Shallow Subsidy Subsidy Subsidy Subsidy (times) % by Product Type x 70%x 30%x 70%x 30% (equals) Demand Potential by Product Type =546 =234 =670 =287 (minus) Existing and Pending Active Adult Units2 -381 -0 -381 -0 (equals) Excess Demand for Aff/Sub Units =165 =234 =289 =287 TABLE HD-11 DEEP-SUBSIDY/SHALLOW SUBSIDY ACTIVE ADULT HOUSING DEMAND EDINA 2025 and 2030 20302025 Age of Householder Age of Householder (plus) Demand from outside Edina (30%) (equals) Total Demand Potential Source: Maxfield Research and Consulting LLC ¹ 2030 calculations define income-qualified households as all households with incomes less than $55,700. Homeowner households with incomes between $28,700 and $55,699 are excluded from the market potential for financially-assisted housing. ² Existing units are deducted at market equilibrium, or 97% occupancy. Fairview units were adjusted to include 90% as occupied by seniors. Note: Individuals 18 and over with a qualified disability are eligible to reside in most units that are under a HUD Section 8 program. HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 206 Demand for Independent (Congregate) Housing Table HD-13 presents our demand calculations for independent living (congregate) housing in Edina in 2020 and 2025 while Tables HD-14 and HD-15 present demand calculations for 2025 and 2030 and 2030 and 2040, respectively. The potential age- and income-qualified base for independent living senior housing includes all senior (65+) households with incomes of $50,000 as well as homeowner households with in- comes between $40,000 and $49,999 who would qualify with the proceeds from the sales of their homes. The proportion of income-qualified homeowners is based on the estimated 2019 homeownership rates of Edina seniors, which are then adjusted over time based on long-term homeownership trends. The number of age, income, and asset-qualified households in Edina is estimated to be 6,341 households in 2020. Demand for independent living (congregate) housing is need-driven, which reduces the quali- fied market to only the portion of seniors who need some assistance. Adjusting to include ap- propriate capture rates for each age cohort (1.5% of households age 65 to 74 and 14.5% of households age 75 and older) results in a local demand potential for 493 independent living units in 2020. 55-64 65-74 75+55-64 65-74 75+ # of Households w/ Incomes $55,700 or Less1 512 1,107 2,857 597 1,237 3,535 (minus) Owner HHs with incomes between $28,700 and $55,699 -286 650 1,485 291 603 1,519 (times ) Homeownership Rate x 80%80%65%x 78%78%63% (equals) Total Potential Market Base =283 587 1,892 =370 767 2,578 (times) Potential Capture Rate x 5.0%15.0%30.0%x 5.0%15.0%30.0% (equals) Demand Potential =14 88 568 =19 115 773 (equals) Potential Demand from Residents =670 907 +287 +389 =957 =1,296 Deep-Shallow Deep-Shallow Subsidy Subsidy Subsidy Subsidy (times) % by Product Type x 70%x 30%x 60%x 40% (equals) Demand Potential by Product Type =670 =287 =777 =518 (minus) Existing and Pending Active Adult Units2 -381 -0 -381 -0 (equals) Excess Demand for Aff/Sub Units =289 =287 =396 =518 ¹ 2040 calculations define income-qualified households as all households with incomes less than $64,650. Homeowner households with incomes between $38,000 and $64,649 are excluded from the market potential for financially-assisted housing. ² Existing units are deducted at market equilibrium, or 97% occupancy. Note: Individuals 18 and over with a qualified disability are eligible to reside in most units that are under a HUD Section 8 program. Source: Maxfield Research and Consulting LLC Age of Householder Age of Householder (plus) Demand from outside Edina (30%) (equals) Total Demand Potential TABLE HD-12 DEEP-SUBSIDY/SHALLOW SUBSIDY ACTIVE ADULT HOUSING DEMAND EDINA 2030 and 2040 2030 2040 HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 207 We estimate that seniors currently residing outside of Edina will generate 30% of the demand. Together, the demand from Edina seniors and demand from seniors who are willing to locate to Edina totals 705 independent living units in 2020. Next, we subtract existing independent living units in Edina. Therefore, demand is reduced to 267 units in 2020. Adjusting for inflation, we estimate that households with incomes of $50,000 or more and sen- ior homeowners with incomes between $40,000 and $49,999 would qualify for independent living housing in 2025. This increases to households with incomes of $55,000 or more and sen- ior homeowners with incomes between $45,000 and $54,999 in 2030 and to households with incomes of $60,000 or more and senior homeowners with incomes between $50,000 and $59,999 in 2040. Following the same methodology, demand is increases to 460 units in 2025 553 units in 2030 and 483 units in 2040. # of Households w/ Incomes of $50,000 or More¹ # of Households w/ Incomes of $40,000 to $49,999¹++ (times) Homeownership Rate x x (equals) Total Potential Market Base == (times) Potential Capture Rate²x x (equals) Potential Demand =+=+ Potential Demand from Edina Residents == (plus) Demand from Outside Edina (30%)++ (equals) Total Demand Potential == (minus) Existing and Pending Independent (Congregate) Units³-- (equals) Total Independent (Congregate) Demand Potential == Source: Maxfield Research and Consulting LLC TABLE HD-13 MARKET RATE INDEPENDENT (CONGREGATE) RENTAL HOUSING DEMAND EDINA 2020 and 2025 2020 2025 Age of Householder Age of Householder 65-74 75+65-74 75+ 3,072 2,711 3,722 3,562 252 523 239 551 82%67%82%67% 3,279 3,062 3,918 3,931 1.5%14.5%1.5%14.5% 49 444 59 570 493 629 211 269 705 898 438 438 267 460 ¹2025 calculations define income-qualified households as all households with incomes greater than $50,000 and homeowner households with incomes between $40,000 and $49,999. 2 The potential capture rate is derived from data from the Summary Health Statistics for the U.S. Population: National Health Interview Survey, 2008 by the U.S. Department of Health and Human Services. The capture rate used is the percentage of seniors needing assistance with IADLs, but not ADLs (seniors needing assistance with ADLs typcially need assistance with multiple IADLs and are primary candidates for service-intensive assisted living). ³ Competitive units include independent (congregate) units at 95% occupancy (market equilibrium). HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 208 # of Households w/ Incomes of $50,000 or More¹ # of Households w/ Incomes of $40,000 to $49,999¹++ (times) Homeownership Rate x x (equals) Total Potential Market Base == (times) Potential Capture Rate²x x (equals) Potential Demand =+=+ Potential Demand from Edina Residents == (plus) Demand from Outside Edina (30%)++ (equals) Total Demand Potential == (minus) Existing and Pending Independent (Congregate) Units³-- (equals) Total Independent (Congregate) Demand Potential == Source: Maxfield Research and Consulting LLC 12030 calculations define income-qualified households as all households with incomes greater than $55,000 and homeowner households with incomes between $45,000 and $54,999. 2 The potential capture rate is derived from data from the Summary Health Statistics for the U.S. Population: National Health Interview Survey, 2008 by the U.S. Department of Health and Human Services. The capture rate used is the percentage of seniors needing assistance with IADLs, but not ADLs (seniors needing assistance with ADLs typcially need assistance with multiple IADLs and are primary candidates for service-intensive assisted living). ³ Competitive units include Independent (congregate) units at 95% occupancy (market equilibrium). 438 438 460 553 629 694 269 297 898 991 1.5%14.5%1.5%14.5% 59 570 59 635 82%67%82%67% 3,918 3,931 3,925 4,377 3,722 3,562 3,599 3,846 239 551 397 792 Age of Householder Age of Householder 65-74 75+65-74 75+ TABLE HD-14 MARKET RATE INDEPENDENT (CONGREGATE) RENTAL HOUSING DEMAND EDINA 2025 and 2030 2025 2030 # of Households w/ Incomes of $55,000 or More¹ # of Households w/ Incomes of $45,000 to $54,999¹++ (times) Homeownership Rate x x (equals) Total Potential Market Base == (times) Potential Capture Rate²x x (equals) Potential Demand =+=+ Potential Demand from Edina Residents == (plus) Demand from Outside Edina (30%)++ (equals) Total Demand Potential == (minus) Existing and Pending Independent (Congregate) Units³-- (equals) Total Independent (Congregate) Demand Potential == Source: Maxfield Research and Consulting LLC ³ Competitive units include Independent (congregate) units at 95% occupancy (market equilibrium). 2 The potential capture rate is derived from data from the Summary Health Statistics for the U.S. Population: National Health Interview Survey, 2008 by the U.S. Department of Health and Human Services. The capture rate used is the percentage of seniors needing assistance with IADLs, but not ADLs (seniors needing assistance with ADLs typcially need assistance with multiple IADLs and are primary candidates for service-intensive assisted living). 694 644 297 276 991 921 438 438 553 483 12040 calculations define income-qualified households as all households with incomes greater than $60,000 and homeowner households with incomes between $50,000 and $59,999. 1.5%14.5%1.5%14.5% 59 635 56 589 82%67%80%70% 3,925 4,377 3,707 4,061 3,599 3,846 3,390 3,603 397 792 396 653 Age of Householder Age of Householder 65-74 75+65-74 75+ TABLE HD-15 MARKET RATE INDEPENDENT (CONGREGATE) RENTAL HOUSING DEMAND EDINA 2030 and 2040 2030 2040 HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 209 Demand for Assisted Living Housing Table HD-16 presents our demand calculations for assisted living senior housing in Edina in 2020 and 2025 while tables HD-17 and HD-18 present demand for 2025 and 2030 and 2030 and 2040, respectively. This analysis focuses on the potential private pay/market rate demand for assisted living units. The availability of more intensive support services such as meals, housekeeping and personal care at assisted living facilities usually attracts older, frailer seniors. According to the 2009 Overview of Assisted Living (which is a collaborative research project by the American Association of Homes and Services for the Aging, the American Seniors Housing Association, National Center for Assisted Living, and National Investment Center for the Seniors Housing and Care Industry), the average age of residents in freestanding assisted living facilities was 87 years in 2008. Hence, the age-qualified market for assisted living is defined as seniors ages 75 and over, as we estimate that of the half of demand from seniors under age 87, almost all would be from seniors over age 75. In 2020, there are an estimated 7,088 seniors age 75 and older in Edina. Demand for assisted living housing is need-driven, which reduces the qualified market to only the portion of seniors who need assistance. According to a study completed by the U.S. Census Bureau (1999 panels of the Survey of Income and Program Participation (SIPP) files), 30% of seniors needed assistance with everyday activities (from 25.5% of 75-to-79-year-olds, to 33.6% of 80-to-84-year-olds and 51.6% of 85+ year olds). Applying these percentages to the senior population yields a potential assisted living market of 2,711 seniors in Edina. Due to the supportive nature of assisted living housing, most daily essentials are included in monthly rental fees, which allow seniors to spend a higher proportion of their incomes on housing with basic services. Therefore, the second step in determining the potential demand for assisted living housing in Edina is to identify the income-qualified market based on a senior’s ability to pay the monthly rent. We consider seniors in households with incomes of $40,000 or greater to be income-qualified for assisted living senior housing in Edina. Households with incomes of $40,000 could afford monthly assisted living fees of $3,000 by allocating 90% of their income toward the fees. According to the 2009 Overview of Assisted Living, the average arrival income of assisted living residents in 2008 was $27,260, while the average annual assisted living fee was $37,281 ($3,107/month). This data highlights that seniors are spending down assets to live in assisted living and avoid institutional care. Thus, in addition to households with incomes of $40,000 or greater, there is a substantial base of senior households with lower incomes who income-qual- ify based on assets – their homes, in particular. HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 210 Sixty-seven percent of the age 75+ households in Edina were homeowners in 2019 and the me- dian resale price of homes through the end of September 2019 in Edina was $465,000. Seniors selling their homes for the median resale price would generate an estimated $437,100 in pro- ceeds after selling costs. With an average monthly fee of $3,800, these proceeds would last nearly ten years in an assisted living facility, which is higher than the average length of stay in assisted living (27 months according to the 2009 Overview of Assisted Living). For each age group in Table HD-16, we estimate the income-qualified percentage to be all seniors in house- holds with incomes above $40,000 (who could afford monthly rents of $3,800+ per month) plus 40% of the estimated seniors in homeowner households with incomes below $40,000 (who will spend down assets, including home-equity, in order to live in assisted living housing). This re- sults in a total potential market of 1,979 units in 2020. Because most assisted living residents are single (88% according to the 2009 Overview of Assisted Living), our demand methodology multiplies the total potential market by the percentage of seniors age 75+ in Edina living alone. Based on Census data, an estimated 58% of age 75+ households in Edina lived alone. Applying this percentage results in a total base of 1,149 age/income-qualified singles. The 2009 Overview of Assisted Living found that 12% of residents in assisted living were couples. Adding in couples would result in a total of 1,306 age/income-qualified seniors needing assistance in Edina including both couples and singles. We estimate that roughly 72% of the qualified market needing significant assistance with Activities of Daily Living (“ADLs”) would either remain in their homes or less service-intensive senior housing with the assistance of a family member or home health care, or would need greater care provided in a skilled care facility. The remaining 28% could be served by assisted living housing. Applying this potential market penetration rate of 28% results in demand for 366 assisted living units in 2020. We estimate that a portion of demand for assisted living units (30%) will come from outside of Edina. Applying this figure results in total potential demand for 522 market rate assisted living units in Edina. There are 395 assisted living units in Edina. After adjusting for households that would utilize Elderly Waivers and accounting for the remaining competitive units (minus a 93% occupancy rate) from the total demand potential, demand is calculated for 127 assisted living units in the Edina in 2020. Demand increases to 224 assisted living units in 2025 and 298 assisted living units in 2030. Additional demand could come from seniors that will need to receive supplemental income in order to afford assisted living or memory care housing. While some of these seniors will re- ceive income from the sales of their homes, others will need to rely on other sources of public aid. The Elderly Waiver program has provided public funding for seniors who wish to receive “alternative” care that allows them to stay in the community as opposed to receiving similar care at a nursing home. HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 211 Most assisted living developments require residents to have lived in their facility for a certain amount of time before they can use a waiver, and most limit the number of waivers accepted within the community to no more than 15% to 20%. Some small facilities may accept higher amounts of residents on waivers and some new facilities will not accept waivers from first-time residents. Percent Percent Needing Needing Age group People Assistance¹People Assistance¹ 75 - 79 2,255 25.5%3,013 25.5% 80 - 84 1,987 33.6%2,344 33.6% 85+2,846 51.6%3,125 51.6% Total 7,088 8,482 Percent Income-Qualified2 Total potential market (times) Percent living alone x (equals) Age/income-qualified singles needing assistance = (plus) Proportion of demand from couples (12%)³+ (equals) Total age/income-qualified market needing assistance = (times) Potential penetration rate4 x (equals) Potential demand from Edina residents = (plus) Proportion from outside Edina (30%)+ (equals) Total potential assisted living demand = (minus) Existing market rate assisted living units5 - (equals) Total excess market rate assisted living demand = Source: Maxfield Research and Consulting LLC TABLE HD-16 MARKET RATE ASSISTED LIVING DEMAND EDINA 2020 and 2025 2020 2025 1,469 1,612 Number Number Needing Needing Assistance1 Assistance1 575 768 668 787 2,711 3,168 73%74% 1,979 2,344 58%58% 1,149 1,361 157 186 1,306 1,547 28%28% 366 433 157 186 522 619 395 395 127 224 2 Includes households with incomes of $40,000 or more (who could afford monthly rents of $3,000+ per month) plus 40% of estimated owner households with incomes below $40,000 (who will spend down assets, including home-equity, in order to live in assisted living housing). 3 The 2009 Overview of Assisted Living (a collaborative project of AAHSA, ASHA, ALFA, NCAL & NIC) found that 12% of assisted living residents are couples. 5 Existing and pending units at 93% occupancy and 15% for Elderly Waivers 1 The percentage of seniors unable to perform or having difficulting with ADLs, based on the publication Health, United States, 1999 Health and Aging Chartbook, conducted by the Centers for Disease Control and Prevention and the National Center for Health Statistics. 4 We estimate that 72% of the qualified market needing assistance with ADLs could either remain in their homes or reside at less advanced senior housing with the assistance of a family member or home health care, or would need greater care provided in a skilled care facility. HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 212 Percent Percent Needing Needing Age group People Assistance¹People Assistance¹ 75 - 79 3,013 25.5%3,358 25.5% 80 - 84 2,344 33.6%2,779 33.6% 85+3,125 51.6%3,416 51.6% Total 8,482 9,554 Percent Income-Qualified2 Total potential market (times) Percent living alone x (equals) Age/income-qualified singles needing assistance = (plus) Proportion of demand from couples (12%)³+ (equals) Total age/income-qualified market needing assistance = (times) Potential penetration rate4 x (equals) Potential demand from Edina residents = (plus) Proportion from outside Edina (35%)+ (equals) Total potential assisted living demand = (minus) Existing market rate assisted living units5 - (equals) Total excess market rate assisted living demand = Source: Maxfield Research and Consulting LLC TABLE HD-17 MARKET RATE ASSISTED LIVING DEMAND EDINA 2025 and 2030 2025 2030 1,612 1,763 Number Number Needing Needing Assistance1 Assistance1 768 856 787 934 3,168 3,553 74%74% 2,344 2,629 58%58% 1,360 1,525 185 208 1,545 1,733 28%28% 433 485 185 208 618 693 395 395 223 298 2 Includes households with incomes of $45,000 or more (who could afford monthly rents of $3,000+ per month) plus 40% of estimated owner households with incomes below $45,000 (who will spend down assets, including home-equity, in order to live in assisted living housing). 3 The 2009 Overview of Assisted Living (a collaborative project of AAHSA, ASHA, ALFA, NCAL & NIC) found that 12% of assisted living residents are couples. 4 We estimate that 72% of the qualified market needing assistance with ADLs could either remain in their homes or reside at less advanced senior housing with the assistance of a family member or home health care, or would need greater care provided in a skilled care facility. 5 Existing and pending units at 93% occupancy and 15% for Elderly Waivers. 1 The percentage of seniors unable to perform or having difficulting with ADLs, based on the publication Health, United States, 1999 Health and Aging Chartbook, conducted by the Centers for Disease Control and Prevention and the National Center for Health Statistics. HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 213 Percent Percent Needing Needing Age group People Assistance¹People Assistance¹ 75 - 79 3,358 25.5%4,053 25.5% 80 - 84 2,779 33.6%3,695 33.6% 85+3,416 51.6%4,053 51.6% Total 9,554 11,801 Percent Income-Qualified2 Total potential market (times) Percent living alone x (equals) Age/income-qualified singles needing assistance = (plus) Proportion of demand from couples (12%)³+ (equals) Total age/income-qualified market needing assistance = (times) Potential penetration rate4 x (equals) Potential demand from Edina residents = (plus) Proportion from outside Edina (30%)+ (equals) Total potential assisted living demand = (minus) Existing market rate assisted living units5 - (equals) Total excess market rate assisted living demand = Source: Maxfield Research and Consulting LLC TABLE HD-18 MARKET RATE ASSISTED LIVING DEMAND EDINA 2030 and 2040 2030 2040 1,763 2,091 Number Number Needing Needing Assistance1 Assistance1 856 1,033 934 1,242 3,553 4,366 74%70% 2,629 3,056 58%58% 1,525 1,773 208 242 1,733 2,014 28%28% 485 564 208 242 693 806 5 Existing and pending units at 93% occupancy and 15% for Elderly Waivers. 395 395 298 411 1 The percentage of seniors unable to perform or having difficulting with ADLs, based on the publication Health, United States, 1999 Health and Aging Chartbook, conducted by the Centers for Disease Control and Prevention and the National Center for Health Statistics. 2 Includes households with incomes of $45,000 or more (who could afford monthly rents of $3,000+ per month) plus 40% of estimated owner households with incomes below $45,000 (who will spend down assets, including home-equity, in order to live in assisted living housing); $50,000 in 2040. 3 The 2009 Overview of Assisted Living (a collaborative project of AAHSA, ASHA, ALFA, NCAL & NIC) found that 12% of assisted living residents are couples. 4 We estimate that 72% of the qualified market needing assistance with ADLs could either remain in their homes or reside at less advanced senior housing with the assistance of a family member or home health care, or would need greater care provided in a skilled care facility. HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 214 Demand for Memory Care Housing Table HD-19 presents our demand calculations for market rate memory care senior housing in Edina in 2020 and 2025 while Tables HD-20 and HD-21 present demand for 2025 and 2030 and 2030 and 2040, respectively. Demand is calculated by starting with the estimated Edina senior (age 65+) population in 2020 and multiplying by the incidence rate of Alzheimer’s/dementia among this population’s age co- horts. According to the Alzheimer’s Association (Alzheimer’s Disease Facts and Figures, 2019), 3% of seniors ages 65 to 74, 17% of seniors ages 75 to 84, and 32% of seniors ages 85+ are in- flicted with Alzheimer’s Disease. This yields a potential market of 1,828 seniors in Edina in 2020. Because of the staff-intensive nature of dementia care, typical monthly fees for this type of housing are at least $4,000 and range upwards of $5,000 to $6,000 when including service packages. Based on our review of senior household incomes in Edina, homeownership rates and home sale data, we estimate that 69% of seniors in Edina would have incomes and/or as- sets to sufficiently cover the costs of memory care housing. This figure considers married cou- ple households where one spouse may have memory care needs and allows for a sufficient in- come for the other spouse to live independently. Multiplying the number of seniors with Alz- heimer’s/dementia 1,828 seniors) by the income-qualified percentage results in a total of 1,262 age/income-qualified seniors in Edina in 2020. According to data from the National Institute of Aging, about 20% of all individuals with memory care impairments comprise the market for memory care housing units. This figure considers that seniors in the early stages of dementia will be able to live independently with the care of a spouse or other family member, while those in the later stages of dementia will re- quire intensive medical care that would only be available in skilled care facilities. Applying this figure to the estimated population with memory impairments yields a potential market of 252 seniors in Edina. We estimate that 30% of the overall demand for memory care housing would come from out- side of Edina. Together, demand totals 360 memory care units in 2020. We reduce the demand potential by accounting for the existing memory care product in Edina. There are 246 units; however, we reduce the competitive units to include memory care units at a 7% vacancy rate and a portion of units occupied by residents utilizing Elderly Waiver. Sub- tracting these competitive units results in demand for 114 units as of 2020. Potential demand for market rate memory care units in Edina is expected to increase to 176 units by 2025, 203 units by 2030 and 272 units by 2040. HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 215 65 to 74 Population 6,551 7,589 (times) Dementia Incidence Rate¹x 3%x 3% (equals) Estimated Age 65 to 74 Pop. with Dementia =197 =228 75 to 84 Population 4,242 5,357 (times) Dementia Incidence Rate¹x 17%x 17% (equals) Estimated Age 75 to 84 Pop. with Dementia =721 =911 85+ Population 2,846 3,125 (times) Dementia Incidence Rate¹x 32%x 32% (equals) Estimated Age 85+ Pop. with Dementia =911 =1,000 (equals) Total Senior Population with Dementia =1,828 =2,138 (times) Percent Income/Asset-Qualified²x 69%x 69% (equals) Total Income-Qualified Market Base =1,262 =1,475 (times) Percent Needing Specialized Memory Care Assistance x 20%x 20% (equals) Total Need for Dementia Care =252 =295 (plus) Demand from Outside Edina (30%)+108 +126 Total Demand for Memory Care Units =360 422 (minus) Existing and Pending Memory Care Units3 -246 -246 (equals) Excess Demand Potential =114 =176 Source: Maxfield Research and Consulting LLC ¹ Alzheimer's Association: Alzheimer's Disease Facts & Figures (2019) ² Includes seniors with income at $60,000 or above ($60,000 in 2025) plus 25% of homeowners with incomes below this threshold (who will spend down assets, including home-equity, in order to live in memory care housing. 3 Existing memory care units at 7% vacancy rate and 15% for Elderly Waiver TABLE HD-19 MARKET RATE MEMORY CARE DEMAND EDINA 2020 and 2025 2020 2025 HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 216 65 to 74 Population 7,589 8,164 (times) Dementia Incidence Rate¹x 3%x 3% (equals) Estimated Age 65 to 74 Pop. with Dementia =228 =245 75 to 84 Population 5,357 6,137 (times) Dementia Incidence Rate¹x 17%x 17% (equals) Estimated Age 75 to 84 Pop. with Dementia =911 =1,043 85+ Population 3,125 3,416 (times) Dementia Incidence Rate¹x 32%x 32% (equals) Estimated Age 85+ Pop. with Dementia =1,000 =1,093 (equals) Total Senior Population with Dementia =2,138 =2,381 (times) Percent Income/Asset-Qualified²x 69%x 66% (equals) Total Income-Qualified Market Base =1,475 =1,572 (times) Percent Needing Specialized Memory Care Assistance x 20%x 20% (equals) Total Need for Dementia Care =295 =314 (plus) Demand from Outside Edina (30%)+126 +135 Total Demand for Memory Care Units =422 449 (minus) Existing and Pending Memory Care Units3 -246 -246 (equals) Excess Demand Potential =176 =203 Source: Maxfield Research and Consulting LLC ¹ Alzheimer's Association: Alzheimer's Disease Facts & Figures (2019) ² Includes seniors with income at $60,000 or above ($65,000 in 2030) plus 25% of homeowners with incomes below this threshold (who will spend down assets, including home-equity, in order to live in memory care housing. 3 Existing memory care units at 7% vacancy rate and 15% for Elderly Waivers TABLE HD-20 MARKET RATE MEMORY CARE DEMAND EDINA 2025 and 2030 2025 2030 HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 217 Need for Skilled Nursing Units Skilled nursing beds are highly regulated by the State of Minnesota. There has been a morato- rium on new nursing home beds since the late 1980s. The State allows for acquisition and transfer of existing beds in high demand areas. In some new senior housing facilities, new skilled nursing beds have been developed because the operator/developer has been able to transfer the licenses from another location to the new facility. A small number of nursing beds (i.e. 20 or less) in a continuum of care facility typically maintain higher occupancy rates than traditional freestanding nursing homes. Also, senior housing facilities continue to increase their ability to care for higher acuity residents. Many residents are able to move into senior housing and remain their for the rest of their lives. If residents need transitional or respite care through skilled nursing, the beds can also be used for that. 65 to 74 Population 8,164 8,702 (times) Dementia Incidence Rate¹x 3%x 3% (equals) Estimated Age 65 to 74 Pop. with Dementia =245 =261 75 to 84 Population 6,137 7,748 (times) Dementia Incidence Rate¹x 17%x 17% (equals) Estimated Age 75 to 84 Pop. with Dementia =1,043 =1,317 85+ Population 3,416 4,053 (times) Dementia Incidence Rate¹x 32%x 32% (equals) Estimated Age 85+ Pop. with Dementia =1,093 =1,297 (equals) Total Senior Population with Dementia =2,381 =2,875 (times) Percent Income/Asset-Qualified²x 66%x 63% (equals) Total Income-Qualified Market Base =1,572 =1,811 (times) Percent Needing Specialized Memory Care Assistance x 20%x 20% (equals) Total Need for Dementia Care =314 =362 (plus) Demand from Outside Edina (30%)+135 +155 Total Demand for Memory Care Units =449 518 (minus) Existing and Pending Memory Care Units3 -246 -246 (equals) Excess Demand Potential =203 =272 Source: Maxfield Research and Consulting LLC ¹ Alzheimer's Association: Alzheimer's Disease Facts & Figures (2019) ² Includes seniors with income at $65,000 or above ($70,000 in 2040) plus 25% of homeowners with incomes below this threshold (who will spend down assets, including home-equity, in order to live in memory care housing. 3 Existing memory care units at 7% vacancy rate and 15% for Elderly Waivers TABLE HD-21 MARKET RATE MEMORY CARE DEMAND EDINA 2030 and 2040 2030 2040 HOUSING DEMAND ANALYSIS MAXFIELD RESEARCH AND CONSULTING, LLC 218 Although we anticipate that demand for skilled nursing care will rise with the substantial in- crease in the aging of Baby Boomers, there are no plans at this time to increase the number of nursing home beds in Minnesota. It is likely that new methods of care delivery, some of which are already being tested, will continue to take the place of traditional nursing homes. RECOMMENDATIONS AND CONCLUSIONS MAXFIELD RESEARCH AND CONSULTING, LLC 219 Introduction/Overall Housing Recommendations This section summarizes demand for specific housing products in Edina and recommends devel- opment concepts to meet the housing needs forecast for the City. All recommendations are based on findings of the Comprehensive Housing Needs Assessment. The following tables and charts illustrate calculated demand by product type. Housing demand is highly contingent on projected household growth, market demand and land availability. The ability of Edina to ac- commodate new household growth will rely heavily on infill and redevelopment. Type of Use 2020-2025 2025-2030 2030-2040 Rental - Market Rate 430 947 1,200 Rental - Shallow-Subsidy 397 517 655 Rental - Deep-Subsidy 284 258 327 For-Sale - Single-family 47 62 92 For-Sale - Multifamily 215 246 831 Total General Occupancy Units Supportable 1,373 2,030 3,105 2020 2025 2030 2040 Market Rate Adult Few Services (Active Adult)378 533 535 548 Ownership 126 219 220 228 Rental 252 314 315 320 Independent Living (Congregate)267 460 553 483 Assisted Living 127 224 298 411 Memory Care 114 176 203 272 Total Market Rate Senior Units Supportable 886 1,393 1,589 1,714 Shallow-Subsidy/Deep-Subsidy Active Adult - Shallow-Subsidy 304 165 289 396 Active Adult - Deep-Subsidy 294 234 287 518 Total Shallow/Deep-Subsidy Sr Units Supportable 598 399 576 914 Source: Maxfield Research & Consulting, LLC TABLE CR-1 SUMMARY OF HOUSING DEMAND EDINA, MN JANUARY 2020 Age-Restricted (Senior) General-Occupancy RECOMMENDATIONS AND CONCLUSIONS MAXFIELD RESEARCH AND CONSULTING, LLC 220 Based on the analysis and demand calculations, Table CR-2 provides a summary of suggested housing products with number of units that may be developed in Edina from 2020 to 2040. The proposed concepts are intended to act as a development guide to most effectively meet the housing needs of existing and future households in the City. For some housing product types, it is unlikely that Edina can fully meet the demand for new residential units primarily for low-den- sity housing, as products in these categories are likely to be upper bracket. Redevelopment op- tions at higher densities could target household segments not able to afford low-density prod- ucts. The amount of housing recommended does not equal demand in Table CR-1. RECOMMENDATIONS AND CONCLUSIONS MAXFIELD RESEARCH AND CONSULTING, LLC 221 Purchase Price/ Monthly Rent Range¹ Market Rate For-Sale Housing Move-Up Single-Family $650,000-$700,000 40 -50 Owned Multifamily (TwinHms/Villas)$525,000-$550,000 60 -80 60 -80 Affordable For-Sale Entry-level single-family $425,000-$450,000 50 -60 Owned Multifamily (THs/Rowhomes)$400,000 100 -120 100 -120 Market Rate Rental Housing Market Rate - Rental $1,450+/1BR, $2,200+/2BR 500 -600 Total 500 -600 Affordable Rental Housing Affordable Moderate Income3 220 -260 Subsidized 30% of Income4 160 -180 Total 160 -180 Total-General Occupancy 820 -980 Purchase Price/ Monthly Rent Range¹ Senior Coop./Ownership Active Adult $200,000+/1BR - $400,000+/2BR 200 -240 Active Adult Market Rate Rental5 $1,400+/1BR - $1,900+/2BR 200 -250 Active Adult Affordable Rental5 Moderate Income3 160 -180 Active Adult Subsidized Rental5 30% of Income4 150 -200 Independent Living/Congregate $2,800+/1BR - $4,500+/2BR 300 -350 Assisted Living $3,500+/EFF - $4,500+/1BR 180 -200 Memory Care $4,200+/EFF - $5,000+/1BR 120 -140 Total Senior Units 1,310 -1,560 Total - All Units 2,130 -2,540 2030-2040 recommended development should be revisited based on number of units developed from 2020-2030. 2030-2040 No. of Units 2030-2040 No. of Units 30 40 40 30 30 Units General Occupancy Housing No. of 120 2020-2025 10 20 No. of Units 2025-2030 10 20 180 10 10 30 490 300 120 50 250 Senior Housing (i.e. Age Restricted) 2020-2025 2025-2030 Units No. of No. of Units 2030-2040 1,030 960 540 2020-2025 2025-2030 510 80 100 100 60 80 150 60 80 60 30 TABLE CR-2 Source: Maxfield Research & Consulting, LLC RECOMMENDED HOUSING DEVELOPMENT CITY OF EDINA 2020 to 2040 ¹ Pricing in 2020 dollars. Pricing can be adjusted to account for inflation. 2 Replacement need, infill, and redevelopment. 3 Affordablity subject to income guidelines per Minnesota Housing Finance Agency (MHFA). See Table HA-1 for Hennepin County Income limits. 4 Subsized housing will require a high level of financial assistance 5 Alternative development concept is to combine active adult affordable and market rate active adult into mixed-income senior i Note - Recommended development does not equal total demand. Edina may not be able to accommodate all recommended housing types based on land availability and development constraints. 40 30 80 100 180 150 50 200 450 RECOMMENDATIONS AND CONCLUSIONS MAXFIELD RESEARCH AND CONSULTING, LLC 222 Housing Recommendations/Gaps For-Sale Housing Single-Family Housing Table HD-1 identifies demand for 47 single-family housing units in Edina to 2025 and another 62 single-family homes by 2030. As a first-tier suburb, Edina is fully-developed and has a very lim- ited supply of vacant land available for future housing development. Redevelopment of some sites and combining existing parcels could provide additional opportunities for new single-fam- ily construction as has occurred in the recent past. If more sites were available for this type of development, especially at a lower land cost, we acknowledge that single-family housing de- mand would be very strong for new detached housing subdivisions. Due to land constraints however, new single-family housing will likely be confined to infill, underutilized, teardowns, or redevelopment areas. Housing values in Edina are higher than in neighboring communities as demonstrated in the for- sale section of the report. With a median resale single-family home value of $465,000, many potential buyers, including many first-time homebuyers are priced out of the Edina single-fam- ily market. Other housing products are available, including older townhomes and condomini- ums, but these units may not be as attractive to families. From 2010 through 2018, 882 homes were torn down and rebuilt. The average value of homes torn down was in the mid-$400,000s and the average value of the new homes was $1.2 million. Although the City benefits from an increased tax capacity due from these rebuilt homes, it has also lost many homes that were af- fordable to middle-income households, especially those that may want to relocate to Edina and would bring additional equity from a first purchase. To a degree, tear-downs are response to homes that may be viewed as functionally or physi- cally obsolete in the marketplace and other features and amenities of the community support a value for the land that exceeds the value of the current home. Tear-downs are not unique to Edina and other high-income areas in Minneapolis and western Hennepin County have been ex- periencing similar situations. Although blight replacement is usually highly desired, with a price point of the existing home in the mid-$400,000s, it is unlikely that replacements have been due to traditional “blight.” A portion of current or prospective Edina homeowners who desire new construction, may be unable to find housing in the City that meets their needs. Some of those will move to a differ- ent community. Others that can afford it may choose to remove the existing home and con- struct a new home. One comment from the City’s community survey identified Edina as acces- sible and conveniently located. Removing the existing home is one way for buyers to obtain the housing they want without having to commute long distances or forego other amenities that Edina has to offer. RECOMMENDATIONS AND CONCLUSIONS MAXFIELD RESEARCH AND CONSULTING, LLC 223 There is a demand/need for more modest homes across the Twin Cities and in Edina. Tear- downs have decreased recently, but demand for new housing continues, particularly housing targeted to entry-level buyers (i.e. low to mid-$300,000s). The Come Home2 Edina program ad- dresses this need in part. Large lots however, remain the standard which continues to drive-up the cost of existing and new housing. While younger buyers may still want all the features and amenities within the home, they are less likely to want to spend time taking care of a large yard. This makes products such as town- homes an attractive option. Without assistance, current development costs result in new home construction in the upper end of the move-up and into the executive price levels. Demand for these products is primarily being served through tear-downs and additions and improvements to existing homes. Although pricing for new construction may not necessarily be higher for the actual home, cost of land and other components may drive the cost of housing in Edina higher than would be the case in neighboring communities. For example, new construction move-up housing in suburban edge communities usually starts in the low to mid-$400,000. In Edina, the cost is typically above $600,000. New construction executive homes in the suburban edge communities are usually priced starting at $600,000 and above. This category in Edina is likely to be $900,000 or higher with many homes priced at more than $1 million. RECOMMENDATIONS AND CONCLUSIONS MAXFIELD RESEARCH AND CONSULTING, LLC 224 There are six single-family lots available in Edina, Blake Woods subdivision. Lots are valued at $350,000 and most lots have a total square footage of This is about equal to the average per square foot price for Hennepin and Ramsey Counties. The chart on the previous page shows the median sales price and PSF for new single-family housing across the Metro Area by county; as depicted in the chart, Hennepin County has the highest new construction costs in the Metro Area at $560,000 ($190 PSF). Higher costs in fully-developed communities in the Metro Area are primarily driven by lack of land supply and high site acquisition costs. Small Lot Single-Family. On its own, small lot single-family development has not been readily accepted in the larger market, especially in suburban locations. Buyer concerns regarding ap- preciation and resale and reduced absorption even at affordable prices have deterred builders from constructing sizeable developments. With housing costs increasing however, more build- ers are reducing lot sizes down from 75’ widths to 65’ widths for move-up homes and increas- ing the amount of lot coverage. In Minneapolis, St. Paul and some first-tier suburbs, lot sizes are much smaller and buyers are willing to accept a smaller lot and smaller, but fully appointed homes. Since most of this development has been a result of tear-downs however, the cost to develop new has not created affordable ownership homes. We believe there would be a strong market for new small, lot single-family homes in Edina at a price point priced in the mid-$400,000s. These homes should be designed to fit in with the ex- isting character of the neighborhoods in which they would be located. For-Sale Multifamily Housing With the overall aging of the population, more households are looking for greater convenience and less space in their housing and are selecting twinhomes, detached townhomes, and condo- miniums. Typically, the target market for owned multifamily housing is empty-nesters and re- tirees seeking to downsize from their single-family homes. In addition, professionals, particu- larly singles and couples without children also seek these products if they prefer not to have the maintenance responsibilities of a single-family home. In many housing markets, younger households also find purchasing owned attached housing more affordable than purchasing new single-family homes. Although Edina has a base of more affordable townhomes and condomin- iums, new construction for these types of units is priced at an average of $376 per square foot, higher than for new single-family homes, at $346 per square foot. As Table FS-2 showed, multi- family resales make-up an estimated 33% of the for-sale housing market in Edina. The newest developments of this type in Edina are Edina Flats and Hawthorne Place, offering condomini- ums and detached villas. Based on changing demographics and the need for alternative housing types, demand was cal- culated for 381 new owned multifamily for-sale units in Edina to 2030. Because of the limited land supply and high cost to bring these units to the market, it is unlikely that Edina will be able to satisfy the identified demand. Alternative concepts that at differing price points would ap- peal to a broader array of buyers. RECOMMENDATIONS AND CONCLUSIONS MAXFIELD RESEARCH AND CONSULTING, LLC 225 Increasing density may be one way to try to moderate the price points for these types of units, although it is generally accepted that, regardless of increasing density, other resources will be needed to make new construction units more affordable. Demand for most of these products is for single-level living, targeted primarily to the empty-nester and independent senior market. General Occupancy Rental Housing The inventory of multifamily rental housing found that vacancy rates for affordable and subsi- dized housing were the lowest, along with older, more affordable market rate rentals. While new construction rental has absorbed well in the market, the increased number of new units, especially in the Southdale area, is likely to lead to increased vacancy rates in the short-term as it takes the market longer to absorb these luxury units. Due to the age and positioning of the existing rental supply (most pre-1980 construction), a sig- nificant portion of units are priced affordable to households at or less than 80% of AMI, which indirectly satisfies demand from some households that income-qualify for financially assisted housing. The growing renter base however, is seeking newer rental properties with additional and updated amenities that are not often offered in older developments. Several of the older properties in Edina have remodeled units, updating with new kitchens, new baths, and some upgrades to common area amenities. Rent levels increase as a result and these properties con- tinue to maintain high occupancies. Once rents increase however, it reduces the number of rental units affordable to households with incomes at or less than 60% AMI. As in most com- munities, demand is particularly strong for affordable and subsidized units. • Market Rate Rental – Demand calculations identified demand for 200 additional units in Edina between 2020 and 2025, accounting for units already in the pipeline. Additional de- mand for market rate rental is not likely to be felt until later in the five-year period to ena- ble existing new properties to fully absorb into the market. • Affordable General Occupancy Multifamily Housing– There are no income-restricted prop- erties that are 100% affordable in Edina. This is dissimilar from neighboring communities, many of which have a few of these properties. Most of the new affordable units developed in Edina have been in market rate properties that have elected to provide a portion of their units as income-restricted due to the City’s policies. The existing NOAH inventory accounts for a total of 3,000 rental units with rents affordable to households with incomes at or less than 80% of AMI. Although the NOAH inventory pro- vides for a level of affordability in the rental housing stock, a portion of renters are choos- ing to pay less than 30% of their income for rent and are residing in housing where they could pay more. Development of new affordable housing is needed to satisfy the demand that is not being met through the existing inventory. RECOMMENDATIONS AND CONCLUSIONS MAXFIELD RESEARCH AND CONSULTING, LLC 226 Development of new affordable properties is most likely to occur through the Low-Income Housing Tax Credit Program (LIHTC) as in the past. This program has become extremely competitive in the Twin Cities and many developers must submit two to three times to se- cure funding. Some communities are considering other concepts and funding tools to de- velop affordable housing, including fewer luxury features, general obligation bonds, land write downs, land trusts, and property tax reductions. TIF funding has been used exten- sively to increase affordability for new rental construction. Demand for affordable housing is identified at 391 units with rents affordable at 51% to 80% of AMI between 2020 and 2025. Affordable housing would attract households that cannot afford new construction market rate housing units, but do not income-qualify for deep subsidy housing (less than 50% of AMI). Affordable properties attract a broad group of people depending on the unit types offered. One-bedroom units target singles and cou- ples, whereas two and three-bedroom units target families. Some seniors would also be attracted to an affordable concept. Additional affordable units are in the pipeline, but ad- ditional units are needed to meet demand. Units with rents affordable at between 50% to 80% AMI targeting the greatest level of need. • Affordable General Occupancy Rental Townhomes– Rental townhomes affordable to mod- erate-income households would be in high demand in Edina. Affordable rental townhomes have been very popular in many Metro Area communities. These projects would have in- come-restrictions and would target households with incomes between 50% and 80% of area median income; some however, could be workforce units with affordability up to 120% AMI. We recommend a development offering two- and three-bedroom units with up to 24 total units. Units should feature central air conditioning, full appliance package, in- unit washer/dryer, an attached one/two car garage. Such developments are popular with families that cannot afford housing options in the for-sale market or market rate rentals. Because of the lower density of affordable rental townhomes, this housing type would be very expensive to build. Senior Housing As illustrated in Table CR-1, demand exists for all types of senior housing product types in Edina. To 2030, demand exists for 1,589 senior housing units across the product and service-level spectrum. Development of additional senior housing is recommended to provide housing op- portunities for the projected growing group of seniors that may need or want to transition from other housing products. The development of additional senior housing serves a two-fold pur- pose in meeting the housing needs in Edina: older adult and senior residents can relocate to new age-restricted housing in Edina and existing homes and rental units that were occupied by seniors become available to other households. Therefore, the development of additional senior housing does not mean the housing needs of younger households are neglected; it simply means that a greater percentage of housing need is satisfied by housing unit turnover. We note however, that the rising cost of senior housing may result in some decrease in demand from RECOMMENDATIONS AND CONCLUSIONS MAXFIELD RESEARCH AND CONSULTING, LLC 227 households that feel they cannot afford this type of housing or are concerned with spending down all of their assets to reside in senior housing. • Active Adult Rental – Demand is projected for 252 market rate active adult rental units in Edina as of 2020. Avidor is the only market rate active adult property in Edina with 165 units and is still in initial lease-up. Avidor has a higher proportion of one-bedroom than two-bedroom units, which is atypical for these types of properties. Most active adult rental properties have a higher proportion of two-bedroom units to appeal to couples. Depending on the positioning of the product, a portion of seniors that currently reside in general occu- pancy housing may consider age-restricted rental product. Development of this product could be in a separate stand-alone facility or in a mixed-in- come project. A mixed-income building could include a portion of units that would be af- fordable to seniors with incomes at or less than 60% of AMI. • Active Adult Senior Cooperative – There are two existing active senior age-restricted for-sale developments in Edina – one condominium and one cooperative. These two properties have a combined total of 463 units. Demand is projected for 126 units of active adult own- ership housing as of 2020, increasing to 220 units by 2030. The cooperative model, in par- ticular, has appealed to a larger base of potential residents in that it has characteristics of both rental and ownership housing. Cooperative developments allow prospective residents an ownership option and homestead tax benefits without a substantial upfront investment as would be true in a condominium development or life care option. Maxfield Research & Consulting, LLC has found the cooperative model to be well-accepted in suburban commu- nities in the Twin Cities Metro Area and across the Midwest. These developments are high- density and can be accommodated on multifamily zoned property. • Affordable Few Services Rental – Edina demand for affordable senior housing is estimated at 304 units as of 2020, decreasing to 289 units by 2030. We believe this product would be well-received by seniors in and near the Edina area, but it can be difficult to develop given financing challenges and development costs. Affordable senior housing would most likely be developed through the LIHTC program administered by MN Housing. MN Housing has assisted affordable senior housing projects under the tax credit program and recently ex- panded expand financing for this product type but is likely to restrict future funding despite the substantial rising demand over the next ten years. Affordable senior housing products can also be incorporated into a mixed-income building, but this may support a develop- ment’s financial feasibility unless some type of financial assistance is provided. Accommo- dation for at least a portion of the units to very low-income seniors (incomes less than 50% AMI) should also be considered. RECOMMENDATIONS AND CONCLUSIONS MAXFIELD RESEARCH AND CONSULTING, LLC 228 • Independent Living/Congregate – Edina has five properties that offer independent living. These properties have a combined 461 units and are in high demand. Additional demand is calculated for 267 units as of 2020, rising to 533 units by 2030, if no additional units were to be added to the market. New properties are seeing increased demand for larger size units across the board and a higher proportion of two-bedroom units as more couples are making a move to this product type in anticipation of aging in place. Historically more service-in- tensive, many of the continuum of care properties have reduced the level of services in- cluded and offer more services as optional. As such, this product is usually combined with assisted living and memory care to support the optional service component for the inde- pendent living. Properties of this type usually have rents beginning at $2,000 to $2,500 for one-bedroom units. Many properties allow residents to receive additional services in their units as they age. • Assisted Living and Memory Care Senior Housing – Based on the analysis, demand was iden- tified for 127 assisted living units as of 2020, although current vacancies identify that the market is at equilibrium as of the survey, with an overall vacancy rate of 6.9%. Most of the vacancies however, are concentrated in older product and most service-enriched housing in Edina is either fully-occupied or near full occupancy. Increases in the demand for assisted living and memory care are anticipated over the next 10 to 15 years as the baby boom gen- eration ages. CHALLENGES AND OPPORTUNITIES MAXFIELD RESEARCH AND CONSULTING, LLC 229 Challenges and Opportunities Table CR-2 identifies and recommends housing types/concepts to assist in satisfying housing needs in Edina over the next ten years. Additionally, the following are identified as challenges and opportunities for developing the recommended housing types (in no particular order - al- phabetically). • Age of Housing Stock. As illustrated in the Housing Characteristics Section of the report (Ta- ble HC-3), the median year built for a home in Edina is 1967 and 59% of the for-sale housing stock was built prior to 1980. As a first-tier suburban community, housing remodels are on- going and tear-downs demonstrate some replacement of the housing stock. Additional pro- grams to facilitate upgrading of the housing stock could assist in maintaining and making older units more attractive. • Affordability. As illustrated in Table HA-4, based on current home prices, 60% of Edina owner households and 57% of all households could afford to purchase an entry-level home ($400,000) given today’s pricing. Also, 67% of all households and 43% of all renter house- holds could afford the average market rent of a new construction one-bedroom unit in Edina. The percentage drops however, for a new construction two-bedroom unit to only 21% of renter households and drops further to only 9% of renter households for a three- bedroom unit. Because of the higher rent structures at the new market rental buildings be- ing constructed in Edina, the minimum incomes needed to afford a luxury rental are more than double that of the existing rental housing stock in Edina. This demonstrates the need 1,6961,4324,4194,2964,0002,8619261,2498370 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 <1940s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010+UnitsDecade of Construction Housing Units Built by Decade City of Edina CHALLENGES AND OPPORTUNITIES MAXFIELD RESEARCH AND CONSULTING, LLC 230 for housing that would target renter households with moderate incomes. New rental hous- ing is targeting “lifestyle renters” or those with higher incomes who have enough money to buy a house but choose to rent for the convenience and lifestyle. Some of these renters may be cost burdened, but they elect to do so for the location, amenities, and proximity to transit. • Aging Population. As illustrated in Table D-2, there is significant growth in the Edina senior population. In addition, Table D-6 shows the Edina homeownership rate among seniors 65+ remains high, at 82% up through age 74. The high homeownership rate among seniors indi- cates that seniors are preferring to either remain in their homes or elect other lower maintenance products rather than shift over to rental options. The rising population of older adults will continue to fuel demand for alternative maintenance-free housing prod- ucts. In addition, demand for home health care services and home remodeling programs to assist seniors with retrofitting their existing homes is also anticipated to increase. • Housing Programs. Compared to other municipalities in the Twin Cities Metro Area, Edina has a somewhat limited number of housing programs that promote or preserve the existing housing stock in the community and provide homeownership opportunities for low and moderate-income households. Some communities fund housing programs through an HRA levy that collects funds based on the market values of property in the community. Money generated from the HRA levy can be allocated to a several housing issues as long they fall within the boundaries established by state law. Typically levy funds are used to supplement existing housing programs, establish new programs/projects, or allocated to administra- tional needs. Other communities fund housing programs through CDBG funds, economic development authorities, private or public foundations, the general fund or though depart- ment budgets. (i.e. community development, economic development, etc.) 82%82% 67% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 55-64 65-74 75+Homeownership RateAge Cohort Older Adult Homeownership Rates -2019 Edina CHALLENGES AND OPPORTUNITIES MAXFIELD RESEARCH AND CONSULTING, LLC 231 • Job Growth/Employment/Inflow. Historically, low unemployment rates have driven both existing home purchases and new-home purchases. Lack of job growth leads to slow or di- minishing household growth, which in-turn relates to reduced housing demand. Like most areas across the Twin Cities and Minnesota, the unemployment rate peaked in 2009 during the Great Recession at 9.1%. However, since that time, the unemployment rate has de- creased annually and is less than 3% in the Metro Area as of 2019. Although the low unem- ployment rate is positive, continued declines in the unemployment rate or a protracted low unemployment rate may create challenges in filling jobs with qualified workers. Edina is home to several major employers that are job generators in the Twin Cities. Nearly 98% of the jobs in Edina are filled by non-residents of the community. Edina continues to capture workers that view the community as a desirable place to live and to be close to their work. • Land Assembly/Land Bank. Land costs and land assembly are some of the most challeng- ing components for new housing development. Land Banking is a program of acquiring land with the purpose of developing at a later date. After a holding period, the land can be sold to a developer (often at a price lower than market) with the purpose of developing afforda- ble housing or other housing product types. The City could consider acquisition if the right opportunity presented itself. • Homeownership. Several social and financial trends may cause decreases in homeowner- ship rates, including maximum limits for property tax and capital gains deductions and alter- nate incentives to invest in other financial vehicles such as 401K plans and IRAs. However, it remains generally accepted that the purchase of a home and paying off a mortgage has been one of the best long-term vehicles to increasing household wealth. This may change over time depending on long-term economic growth. • Land Constraints/Infill/Teardown’s. Edina has a very limited supply of residential lots suit- able for single- or two-family housing developments; as such, the availability of land and the need to increase density is critical in satisfying future housing demand. The most recent single-family lots available have an estimated market value of $350,000. The very low sup- ply of lots indicates the City is not likely to be able to satisfy the housing demand outlined in Table CR-1 unless substantial in-fill and tear-downs prevail. Although increased density can reduce land costs, the type of product needed to substantially reduce land costs does not always match market demand. Although Edina is likely to continue to have some tear-downs, the substantial price point that results from that type of redevelopment is likely to deter buyers. The higher the price points, the more limited the market that can qualify to buy. This type of development also does not create additional housing, but does replace housing than may be viewed as func- tionally or physically obsolete. CHALLENGES AND OPPORTUNITIES MAXFIELD RESEARCH AND CONSULTING, LLC 232 • Mortgage Rates. Mortgage rates play a crucial part in housing affordability. Lower mort- gage rates result in a lower monthly mortgage payment and buyers receiving more home for their dollar. Rising interest rates often require homebuyers to raise their down payment in order to maintain the same housing costs. Mortgage rates have remained at historic lows over the past several years coming out of the Great Recession. The Federal Reserve has raised the short-term interest rate only twice since the recession and recently reduced it again three times in the past year. Continued low inflation and concern about the domestic and global economies are likely to keep interest rates low. This could increase the demand for owned housing, but with housing prices rising faster than inflation even at lower interest rates, has not generated significant demand for new owned housing. • The following chart illustrates historical mortgage rate averages as compiled by Freddie Mac. The Freddie Mac Market Survey (PMMS) has been tracking mortgage rates since 1972 and is the most relied upon benchmark for evaluating mortgage interest market conditions. The Freddie Mac survey is based on 30-year mortgages with a loan-to-value of 80%. • Millennials. The Millennials (generally defined as persons born in the 1980 and 1990s) are now, as a group, larger than the Baby Boom generation and have begun impacting real es- tate development. The 80 million Millennials began influencing real estate as they formed new households. Many Millennials’ however, have and are continuing to delay home own- ership due to high student loan debt and social changes (i.e. delayed marriage, delayed childbearing, delayed careers, etc.). The median age of the first-time home buyer is now 32 (an older Millennial), an increase from age 30 about a decade ago. Increasing apartment 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017Mortgage RateHistoric 30-year Mortgage Rates 1972 through 2018 Mortgage Rate CHALLENGES AND OPPORTUNITIES MAXFIELD RESEARCH AND CONSULTING, LLC 233 rents in the Twin Cities have also affected the ability of Millennials to save for a down pay- ment and qualify for a mortgage. Studies conducted by the Pew Research Center, a highly respected national think tank and non-profit organization has identified that Millennials generally have the same desires as did their parents regarding having a family, owning a home and when asked specifics, often identify living in a single-family home in a suburban location. With a scarcity of housing in the Twin Cities and rapidly rising home values, entry- level homes are being snapped up by younger buyers. Higher priced homes are increasingly out of reach for many younger households. Although Millennial’s have favored more urban locations and are typically renters today, survey’s show they are not that different in their preferences from other generations. Many Millennials’ indicate they still desire to live in the suburbs, but they desire communi- ties with amenities such as parks, walking trails, shopping, proximity to jobs, transit and en- tertainment. Although Edina’s housing stock is expensive, it has many other amenities that are likely to appeal to Millennials. Entry-level housing on smaller lots with less upkeep and contempo- rary architecture is likely to appeal to households with smaller families or singles and cou- ples that want to live in Edina. • Naturally Occurring Affordable Housing/Preservation. As illustrated in the Rental Market Analysis section, 51% of the market rate rental housing stock in Edina is affordable to households with incomes at or less than 80% of area median income. According to the Har- vard University’s Joint Center for Housing Studies (JCHS), unsubsidized rentals account for more than 75% of the affordable housing stock in the United States. It is estimated that over one-third of the naturally occurring affordable housing stock is composed of smaller multifamily buildings from 5 to 49 units. In the Twin Cities Metro Area, it is estimated that 60% of the rental stock is unsubsidized rentals affordable to households at or below 50% AMI. Because the unsubsidized housing market is unregulated and is fluid, there is the chance some affordable market rate units may be lost or if remodeled, rents could then exceed the affordability level for moderate income households. New construction costs for apartments in Edina are likely to reach $250,000 per unit; whereas an older Class B or Class C rental building may be acquired for $100,000 or less per unit. Therefore, it is typically more eco- nomical to rehabilitate an existing property than build a new one. Because of the high cost of new construction, we recommend the City monitor and encourage the preservation of the unsubsidized rental market as an effort to maintain a sufficient supply of affordable housing. • Shadow Rental Inventory. Shadow rentals are generally considered nontraditional rentals that were previously owner-occupied single-family homes, townhomes or condominiums. The shadow market was fueled in the early part of the previous decade by homeowners who lost their home to foreclosure after the recession who opt to not rent in a traditional CHALLENGES AND OPPORTUNITIES MAXFIELD RESEARCH AND CONSULTING, LLC 234 rental complex. Many of these units, absent some type of legal or other requirement, have not returned to the owner-occupied market. In fact, there are some proposals to develop new construction single-family rentals for those that want the space of a single-family home, but not the upkeep. The City of Edina recently implemented a new rental licensing program effective November 2019. Because this program is in its infancy, there are very few properties that have been registered to date. As more properties enter the licensing system, Edina will be better able to monitor the safety and condition of all rental units, supporting what is generally an aging rental stock. One concern however, may be that with increased inspections, this will cause landlords to raise rents, making rental housing in the community increasingly unaffordable. Rents have been increasing without a license program. Once converted to rental, the economic dynam- ics of a property change. It is often very difficult to convert these units back to the owner- occupied market. Too many rental homes in one area may create a shift in the overall ori- entation of the neighborhood. The rental licensing program will enable Edina to monitor the number of non-traditional rental units in the community over time to mitigate problems with individual properties and improve the overall rental housing stock. HOUSING PROGRAMS MAXFIELD RESEARCH AND CONSULTING, LLC 235 Introduction The following are housing programs offered through third-party agencies or through the City of Edina to address housing needs of Edina residents, preserve and improve the existing housing stock, provide for affordable housing, provide for new housing products, provide for the safety and security of residents residing in rental housing and ownership housing and other strategies and initiatives to support ongoing stability and enhancement of the City’s housing stock. Housing Programs/Activities-Edina and Third-Party Providers: • Housing Choice Voucher (Section 8) Program. Metro HRA administers the Section 8 Housing Choice Voucher program for several cities in Hennepin County including Eden Prairie, Edina, Golden Valley, Maple Grove, Minnetonka and Richfield. Currently, 98 Edina households are using vouchers issued by Metro HRA. The wait list through Metro HRA is not anticipated to re-open again however, for at least another three years as it was just recently opened to accept new applications. Metro HRA provides housing for more than 7,200 families in the core Twin Cities Metro Area. Budgets for the Housing Choice Voucher program continue to decrease as housing costs continue to rise. As a result, fewer households can be served with Vouchers and the time to obtain a Voucher has increased substantially. With rising rents, landlords are opting out of accepting housing vouchers making it more difficult for the tenant to find an apartment that will meet the requirements. • HUD Funded Programs. Each year, the Department of Housing and Urban Development issues a series of Notice of Funding Availability (NOFA) for various grant and funding op- portunities for housing and housing related programs. Programs target specific popula- tions such as elderly, disabled, low- and moderate-income households, populations with special needs and special housing initiatives such as redevelopment, housing preserva- tion and rehabilitation and other programs. Some programs, which were previously of- fered each year, such as Section 202 for the elderly, are now restricted to only qualified low-income census tracts and NOFA announcements for these programs are offered sporadically instead of regularly. Recently, HUD has been offering more diverse oppor- tunities to include a broader array of initiatives such as Continuum of Care (homeless), Jobs Plus Initiative, Self-Help Homeownership Opportunity, Housing Counseling Grant Program, Choice Neighborhoods Planning Grant Programs and other combined housing and support service programs to assist in the creation and support of affordable housing to meet the needs of households seeking affordable housing. • Low-Income Housing Tax Credits. This is a federal program that is administered by the State of Minnesota through its finance agency, MN Housing. MN Housing provides tax credit funding to its development partners (for-profit and non-profit) to create new af- fordable housing units and/or to preserve existing affordable housing through rehabili- tation. Competition for limited financial resources has increased in recent years. Point HOUSING PROGRAMS MAXFIELD RESEARCH AND CONSULTING, LLC 236 scoring ranks each project against a set of criteria which is weighted more heavily to- ward urban locations, walkability and public transit. Some developers have had to sub- mit two to three times before receiving funding. This has reduced the amount of afford- able housing that can be developed resulting in increased demand. Most tax credit de- velopments provide rental rates affordable to households with incomes between 50% and 60% of Area Median Income. These properties also accept Housing Choice Vouch- ers, providing some opportunities for lower-income households to reside in these units. • General Obligation Bonds have been used to a limited degree by municipalities and counties to support the development of affordable housing. Typically, the government guarantees the bonds issued. This can create affordable housing, usually affordable to households with incomes between 60% and 80% of AMI but is not prevalent in the mar- ket. • Metropolitan Council Livable Communities. The Twin Cities Metropolitan Council pro- vides grant funding for developments that link jobs, housing, services and transit. The Local Housing Incentive Account (LIHA) provides grants to communities to help them achieve their negotiated affordable housing goals. Grant funds cover gap financing costs such as infrastructure, land acquisition, demolition, site preparation, alterations and additions, interior and exterior finishing, roofing and other direct construction costs. The Tax Base Revitalization Program provides $5 million annually to investigate and clean up brownfield, contaminated land, groundwater and/or buildings for new devel- opment. Investment goals include cleaning up contaminated land, producing affordable housing, expand each community’s range of housing choices, encourage use of existing parks and walking trails, efficiently use existing infrastructure. The Met Council also of- fers Transit-Oriented Development grants that link housing, jobs and services to • Minnesota Homeownership Center. A non-profit organization that provides infor- mation and connects prospective buyers with a diverse array of resources dedicated to assisting individuals and households with purchasing a home or renovating or rehabbing a home. Down payment assistance, affordable loan products, special programs for ren- ovation, foreclosure prevention and foreclosure counseling, refinancing and reverse mortgages are some of the programs offered through the Center. The Center connects clients with local legal, financial and economic resources to smooth the path to home- ownership and/or to decide whether homeownership is “right” for them. • Minnesota Homeless Fund. Minneapolis-St. Paul Foundation set up the Minnesota Homeless Fund to provide a nimble source of funding to assist organizations and com- munities to provide for crisis response, emergency shelter and low-barrier affordable housing across the State to assist those in extreme need of housing. • MN Housing – Homeless Programs. MN Housing works with private developers and communities to support housing developments that address the needs of the homeless in our cities. Funding for supportive housing, rental assistance, operating subsidies, HOUSING PROGRAMS MAXFIELD RESEARCH AND CONSULTING, LLC 237 Family Homeless Prevention and Assistance Program (FHPAP) provides funding to 20 grantees that cover all 87 counties in Minnesota. Hennepin County is one of the grant administrators of funding through the FHPAP program with services targeting Rapid Re- housing and homeless prevention. Additional dedicated funding is available for devel- opments that incorporate a portion of their housing units for long-term homeless. • MN Housing – Homeowner Programs. MN Housing offers a diverse array of homebuyer education, funding and resources to assist low- and moderate-income prospective buy- ers to achieve homeownership. The partner with local agencies and organizations that have long histories of assisting economically disadvantaged households with purchasing and owning a home. • Rental Housing Licensing and Inspection Program. Edina only recently implemented a rental housing licensing and inspection program. The rental housing licensing and in- spection program consists of inspecting all registered rental dwelling units, including: single-family homes, townhouses, condominiums, duplexes, multifamily buildings, hous- ing with services dwellings and accessory dwelling units. The goal is to inspect a mini- mum of one-third of all licensed rental units each year so that all rented units will have been inspected at least once every three years. The focus of the rental inspection pro- gram is to maintain the quality and stability of rental units, thereby preserving land and building values in the community. Rental housing conditions that adversely affect the life, safety, and general welfare of renters should be attended to for the well-being of all residents and the improvement of housing conditions in the community. • Come Home2 Edina. The City offers a low interest second home mortgage intended to assist families and individuals looking for affordable homeownership in Edina. The maxi- mum loan amount is 25% of the purchase price and not to exceed $60,000. Borrower must spend at least 25% of their gross income on the first mortgage (PITI, etc.) and the program uses the interest rate of the first mortgage. The purchase price of the property cannot exceed $425,000 and the borrower shall not pay less than $1,000 towards down payment, closing costs and/or prepaid expenses. The program has been in place for 20 years. The program is funded through the Edina Housing Foundation. The only area ex- cluded from consideration is the far southwest corner of Edina. • Redevelopment Activities. The City has, in the past, provided some assistance to vari- ous housing developments through the use of TIF or other funding to support redevel- opment. Redevelopment activity has been focused on the Southdale area, the Grandview area and 50th and France commercial district. Each of these areas has experi- enced increased density and redevelopment with owned and rental housing properties. HOUSING PROGRAMS MAXFIELD RESEARCH AND CONSULTING, LLC 238 • Tax Increment Financing. Tax Increment Financing has been utilized in many communi- ties throughout the Metro Area and in Greater Minnesota to support the development of new housing, primarily rental housing to reduce rental rates to bring them in line with levels supportable in the market. The use of TIF to address housing needs for very low- income households has not been used extensively and typically does not provide suffi- cient gap funding to create this type of housing. • Housing Improvement Area (HIA) Program. The HIA program is a financial tool for im- provements in condominiums and townhomes. This program was established by State law and can be a tool through the municipality to assist condominium and townhome developments that may have significant improvements to make to common elements that they would otherwise be unable to finance. St. Louis Park, Bloomington, Minneap- olis and Hopkins have all funded various HIA owned multifamily projects through this program. We do not believe that Edina has ever funded this type of loan for any owned multifamily property in the city to date. • Inclusionary Zoning. The City of Edina requires that multifamily properties seeking re- zoning or comprehensive plan amendments incorporate affordable housing units at 10% affordable at 50% AMI or 20% affordable at 60% AMI. Most new developments have opted for 10% affordable at 50% AMI or have opted out of including affordable housing units by paying a per unit fee of $100,000 for the required affordable units. Today’s cost of constructing new luxury housing units is upwards of $200,000 per unit or higher. Therefore, requiring a per unit fee of $100,000 is less than the cost to develop new af- fordable housing units. A total of 98 new affordable units have been developed or ap- proved in the City between 2015 and 2018. The plan has been expanded to include de- velopments on city owned land and projects seeking city financial assistance. The af- fordability requirement has also been extended from 15 years to 20 years. This is an ef- fort to increase the number of affordable housing units developed and to provide for more affordable housing over the long-term. APPENDIX MAXFIELD RESEARCH AND CONSULTING, LLC 239 APPENDIX SENIOR HOUSING PROPERTIES MAXFIELD RESEARCH AND CONSULTING, LLC 240 Year No. of No. Project Name/City Built Units Vacant No.Type Min -Max Services/Amenities/Comments Market Active Adult Rental Avidor Edina 2019 165 39 89 -1BR 537 -1,125 $2,175 -$2,852 $2.54 -$4.05 5220 Eden Ave (Initial lease-up)76 -2BR 1,013 -1,834 $3,501 -$4,984 $2.72 -$3.46 Market Active Adult Ownership Creekside 2007 126 0 11 -1BR 992 -1,111 $275,000 -$275,000 $248 -$277 7100 Metro Blvd 18 -1BR+D 1,275 -1,352 $305,125 -$351,490 $239 -$260 71 -2BR 1,305 -1,475 $274,810 -$428,250 $211 -$290 26 -2BR+D 1,720 -2,413 $445,500 -$672,000 $259 -$278 Cooperative/Ownership Active Adult 7500 York Cooperative 1977 337 0 184 -1BR 775 -925 $41,391 -$52,156 $53 -$56 7500 York Ave S 135 -2BR 1,020 -1,260 $61,648 -$70,487 $56 -$60 18 -3BR 1,455 -1,455 $89,915 -$89,915 $62 -$62 None Deep Subsidy Active Adult South Haven 1991 100 0 100 -1BR 535 -535 ----- 3400 Parklawn Yorktown Continental 1972 264 0 262 -1BR 525 -525 ----- 7151 York Ave S 2 -2BR 650 -650 ----- Summit Point/Woodhaven 1986 29 0 29 -1BR 600 -600 ----- 5010 Summit Ave Total Deep-Subsidy 393 0 30% of AGI $2.20 $1.67 Shallow-Subsidy Active Adult Rent Ranges Sale Price $1,350 (Mkt Rent)$2.08 Heat, water, sewer and trash removal included in rent; Restricted to 62+; on-site common laundry; community rm w/serving kitchen; computer lab; Building was rehabbed in 2014/2015. Has a community room, dining room, and library. Utilities included. Fitness center, pool, spa, gameroom, theater room, clubhouse, business center, concierge, guest apartments, pet washing station, car charging station & rooftop terrace. $1,175 (Mkt Rent) Condomiminum with in unit washer/dryer, fitness center, lounge and party room, theater, golf simulator, library, art/yoga studio, woodshop and underground garage. There is a 25 lb pet limit. Library, fitness center, hobby room, game room, and workshop. Mini bus Monday through Friday. Convenience Store. Depending on the unit floor plan, wait times may range from 6 mos to 15 years. 30% of AGI $875 (Mkt Rent) 30% of AGI TABLE A-1 SENIOR HOUSING PROPERTIES EDINA November/December 2019 Monthly Rent/Rent/Sales Price/PSFMarket/Base 30% of AGI HUD subsidized property. SENIOR HOUSING PROPERTIES MAXFIELD RESEARCH AND CONSULTING, LLC 241 Year No. of No. Project Name/City Built Units Vacant No.Type Min -Max Services/Amenities/Comments Independent Living/Congregate The Waters of Edina 2013 59 1 34 -1BR 557 -921 $3,400 -$4,530 $4.92 -$6.10 6300 Colonial Way 6 -1BR+D 921 -1,250 $3,400 -$4,530 $3.62 $3.69 15 -2BR 1,063 -1,465 $5,150 -$5,970 $4.08 $4.84 4 -2BR+D 1,453 -1,469 $5,770 -$5,770 $3.93 -$3.97 Brookdale Edina 1990 150 20 7 -Studio 724 -724 $2,675 -$2,675 $3.69 -$3.69 3330 Edinborough Way 45 -1BR 625 -625 $4,255 -$4,255 $6.81 -$6.81 97 -2BR 983 -983 $4,195 -$4,195 $4.27 -$4.27 1 -3BR 1,628 -1,628 $5,250 -$5,250 $3.22 -$3.22 Heritage of Edina 1965 59 8 16 -Studio 290 -420 $1,189 -$1,544 $3.68 -$4.10 3434 Heritage Drive 43 -1BR 450 -705 $1,882 -$2,260 $3.21 -$4.18 Vernon Terrace 1988 127 0 39 -1BR 654 -654 $1,771 -$1,921 $2.71 -$2.94 5250 Vernon Ave 30 -1BR+D 845 -845 $2,034 -$2,034 $2.41 -$2.41 42 -2BR 900 -1,310 $2,029 -$3,226 $2.25 -$2.46 16 -2BR+D 1,050 -1,499 $2,461 -$3,412 $2.28 -$2.34 Yorkshire of Edina 2015 66 5 57 -1BR 589 -862 $3,350 -$3,750 $4.35 -$5.69 7141 York Ave S 3 -1BR+D 1,189 -1,189 $3,750 -$3,750 $3.15 -$3.15 6 -2BR 1,015 -1,015 $4,150 -$4,150 $4.09 -$4.09 Total Independent Living (Congregate)461 34 Assisted Living Aurora on France 2016 88 2 5 -Studio 497 -543 $3,490 -$3,595 $6.62 -$7.02 6500 France Ave S 43 -1BR 665 -1,237 $3,955 -$4,720 $3.82 -$5.95 8 -1BR+D 801 -976 $4,265 -$4,470 $4.58 -$5.32 25 -2BR 1,155 -1,752 $4,605 -$5,615 $3.20 -$3.99 7 2BR+D 1,517 -1,875 $5,505 -$6,150 $3.28 -$3.63 The Waters of Edina 2013 30 1 15 -1BR 557 -921 $3,300 -$3,300 $3.58 -$5.92 6300 Colonial Way 3 -1BR+D 921 -1,250 $4,640 -$4,940 $3.95 -$5.04 8 -2BR 1,063 -1,465 $5,150 -$5,970 $4.08 -$4.84 4 -2BR+D 1,453 -1,469 $5,770 -$6,180 $3.97 -$4.21 Heritage of Edina 1965 84 10 73 -Studio 290 -420 $4,651 -$5,182 $12.34 -$16.04 3434 Heritage Dr 11 -1BR 450 -805 $5,204 -$5,745 $7.14 -$11.56 Sunrise of Edina 1999 69 0 47 -Studio 252 -353 $3,330 -$3,330 $9.43 -$13.21 7128 France Ave S 4 -Studio 371 -417 $3,750 -$3,750 $8.99 -$10.11 18 -1BR 410 -558 $4,890 -$4,890 $8.76 -$11.93 Rent Ranges Sale Price (continued) The Waters of Edina is 55+ and has a fitness center, spa, in unit washer/dryer, clubhouse, & kitchen wih three meals per day. Aditionally, dogs up to 30 lbs are allowed. Daily meals (3), wkly laundry and hskpg. Common areas include sunroom, Service packages are available depending on care level needed; Only small dogs are allowed. Wait list of 2 years on 1BR Facility includes, independent living, assisted living, transitional care, memory care, and care suites. The facility contains a salon, theater, outdoor patio, community room, underground parking ($72 per month), and meals. Connected to Fairview Southdale Hospital and 55+. Fitness center, pool, business center, in unit washer/dryer, salon, lounge, fitness center, library, and solarium. The Waters of Edina is 55+ and has a fitness center, spa, in unit washer/dryer, clubhouse, & kitchen. Aditionally, dogs up to 30 lbs are allowed. Fitness center, walking paths, underground garage ($85), business center, guest suite, library, courtyard and garden, therapy room, barber shop, pool, community room. Facility is 65+. Flexible meal options, housekeeping, barber shop, wellness checks, utilities included, and underground parking ($60/mo). Flexible meal options, housekeeping, barber shop, wellness checks, utilities included and underground parking ($60/mo). There are 66 assisted living, and 30 memory care units. In unit washer/dryer, fitness room, kitchen, chapel, salon, lounge, bistro/pub room with 1-3 meals per day and underground parking ($75/mo). Facility is 55+ and pet limit is 25 lbs. TABLE A-1 SENIOR HOUSING PROPERTIES EDINA November/December 2019 Market/Base Monthly Rent/Rent/Sales Price/PSF SENIOR HOUSING PROPERTIES MAXFIELD RESEARCH AND CONSULTING, LLC 242 Year No. of No. Project Name/City Built Units Vacant No.Type Min -Max Services/Amenities/Comments Assisted Living (continued) Brookdale Edina 1990 54 10 7 -Studio 450 -450 $3,415 -$3,415 $7.59 -$7.59 3330 Edinborough Way 47 -1BR 560 -560 $4,255 -$4,255 $7.60 -$7.60 York Gardens 2011 47 4 10 -Studio 409 -409 $3,470 -$3,780 $8.48 -$9.24 3451 Parklawn Ave S 21 -1BR 559 -625 $4,610 -$4,955 $7.93 -$8.25 4 -1BR+D 786 -870 $5,055 -$5,205 $5.98 -$6.43 12 -2BR 875 -1,115 $5,205 -$6,140 $5.51 -$5.95 Ashwood -Geneva Suites 1973 6 1 6 -Pvt. Suite 160 -220 $12,167 -$12,167 $55.30 -$76.04 6200 Parkwood Road Braeburn -Geneva Suites 1969 6 1 6 -Pvt. Suite 160 -220 $12,167 -$12,167 $55.30 -$76.04 6222 Braeburn Cir Walker Care Suites 1991 60 1 50 -Studio 298 -477 $3,100 -$3,650 $7.65 -$10.40 7400 York Ave S 8 -1BR 511 -518 $4,010 -$4,010 $7.74 -$7.85 2 -1BR+D 700 -700 $4,115 -$4,115 $5.88 -$5.88 Yorkshire of Edina 2015 66 5 57 -1BR 589 -862 $3,750 -$4,150 $4.81 -$6.37 7141 York Ave S 3 -1BR+D 1,189 -1,189 $4,150 -$4,150 $3.49 -$3.49 6 -2BR 1,015 -1,015 $4,550 -$4,550 $4.48 -$4.48 Total Assisted Living 510 35 Memory Care Aurora on France 2016 35 3 25 -Studio 357 -464 $4,275 -$4,495 $9.69 -$11.97 6500 France Ave S 10 -Comp Ste 311 -341 $3,935 -$3,935 $11.54 -$12.65 York Gardens 2011 15 0 15 -Studio 409 -409 $3,910 -$4,140 $9.56 -$10.12 3451 Parklawn Ave S Monthly Rent/Rent/Sales Price/PSF Rent Ranges Sale Price TABLE A-1 SENIOR HOUSING PROPERTIES Additional care package in addition to housing/basic services mo fee; common lvg area for meals and activities; 24/7 care available; med mgmt; guest suite; weekly hskp; outside memory garden. York Gardens provides assisted living/memory care connected via hallway to 7500 York Cooperative. Rest.-style dining; 24/7 care if needed; all personal cares available; salon/spa; theater rm; card clubs; art classes; htd UG pkg; all utilities included; fitness ctr w/wellness classes Daily meals and near Centennial Lakes. Also have care suites available at cost of $330/day. AL care packages available. 45 care suites/27 assisted living EDINA November/December 2019 (continued) Market/Base Home with six bedrooms for each of the residents. Home is 4,000 sqft and in the Parkwood Knolls neighborhood. Cost is $400 per day, all inclusive and guaranteed for life Staff on duty 24/7; specialized memory care programming; emerg call; daily hkspg; personal laundry; salon; daily meal service; pvt gathering spaces; personal care. The facility contains theater room, outdoor patio, community room, enclosed heated parking. Connected to Fairview Southdale Hospital. Near Braemar Golf Course. Cost is $400 per day, all-inclusive and guaranteed for life. Brookdale Edina is a 65+ community with a fitness center, walking paths, indoor garage, business center, guest suite, library, courtyard and garden, therapy room, barber shop, pool, & community room. There are 66 assisted living, and 30 memory care units. In unit washer/dryer, fitness room, kitchen, chapel, salon, lounge, bistro/pub room with 1-3 meals per day, and underground parking ($75/mo). Facility is 55+ and pet limit is 25 lbs. SENIOR HOUSING PROPERTIES MAXFIELD RESEARCH AND CONSULTING, LLC 243 Year No. of No. Project Name/City Built Units Vacant No.Type Min -Max Services/Amenities/Comments Memory Care (continued) Sunrise of Edina 1999 23 0 14 -Pvt Ste 252 -300 $4,710 -$4,710 $15.70 -$15.70 7128 France Ave S 6 -Comp Ste 353 -417 $5,340 -$5,340 $12.81 -$12.81 3 -1BR 550 -550 $6,150 -$6,150 $11.18 -$11.18 Brookdale Edina 1990 35 4 22 -Studio 400 -400 $5,095 -$5,095 $12.74 -$12.74 3330 Edinborough Way 13 -1BR 626 -626 $6,615 -$6,615 $10.57 -$10.57 English Rose Suites - Loch Wood 1970 6 0 6 -Pvt. Ste 185 -225 $3,250 -$4,950 $17.57 -$22.00 6201 Loch Moor Dr English Rose Suites - Interlachen 1946 6 0 6 Pvt. Ste 165 -215 $3,250 -$4,950 $19.70 -$23.02 609 Blake Rd S English Rose Suites - Indian Hills 1982 6 0 6 Pvt. Ste 175 -210 $3,250 -$4,950 $18.57 -$23.57 6400 Timber Ridge English Rose Suites - Gleason Kn 1966 6 0 6 -Pvt. Ste 180 -212 $3,250 -$4,950 $18.06 -$23.35 6200 Loch Moor Dr English Rose Suites - Braemar Hi 1972 6 0 6 -Pvt. Ste 185 -215 $3,250 -$4,950 $17.57 -$23.02 6941 Valley View Rd Rent Ranges Sale Price SENIOR HOUSING PROPERTIES EDINA November/December 2019 (continued) Market/Base Monthly Rent/Rent/Sales Price/PSF TABLE A-1 Partnerships with local providers such as the Mayo Clinic and Health Partners. Various therapy treatments, daily exercise, group activites, and one to three care ratio. There are two vacancies among the five Edina locations. Partnerships with local providers such as the Mayo Clinic and Health Partners. Various therapy treatments, daily exercise, group activites, and one to three care ratio. There are two vacancies among the five Edina locations. Daily meals, personal laundry, housekeeping, monthly wellness visits; daily activities; sunroom, lounge areas, main floor café/bistro; pvt. dining; dining rm. Atrium activity area Partnerships with local providers such as the Mayo Clinic and Health Partners. Various therapy treatments, daily exercise, group activites, and one to three care ratio. There are two vacancies among the five Edina locations. Partnerships with local providers such as the Mayo Clinic and Health Partners. Various therapy treatments, daily exercise, group activites, and one to three care ratio. There are two vacancies among the five Edina locations. Fitness center, walking paths, indoor garage, business center, guest suite, library, courtyard and garden, therapy room, barber shop, pool, & community room. Partnerships with local providers such as the Mayo Clinic and Health Partners. Various therapy treatments, daily exercise, group activites, and one to three care ratio. There are two vacancies among the five Edina locations. SENIOR HOUSING PROPERTIES MAXFIELD RESEARCH AND CONSULTING, LLC 244 Year No. of No. Project Name/City Built Units Vacant No.Type Min -Max Services/Amenities/Comments Memory Care (continued) The Waters of Edina 2013 42 0 36 -Studio 410 -563 $4,170 -$4,300 $7.64 -$10.17 6300 Colonial Way 6 -1BR 472 -761 $4,580 -$4,580 $6.02 -$9.70 Yorkshire of Edina 2015 30 0 27 -Studio 384 -393 $4,800 -$4,900 $12.47 -$12.50 7141 York Ave S 3 -1BR 589 -589 $5,200 -$5,200 $8.83 -$8.83 Walker Care Suites 1991 12 0 12 -Studio 298 -378 $1,920 -$1,920 $5.08 -$6.44 7400 York Ave S Vernon Terrace (The Willows)2011 16 0 14 -Studio 295 -513 $2,459 -$4,621 $8.34 -$9.01 5250 Vernon Ave 2 -1 BR 654 -654 $4,833 -$4,833 $7.39 -$7.39 Heritage of Edina 1965 75 18 56 -Studio 290 -375 $6,274 -$6,718 $17.91 -$21.63 3434 Heritage Dr 19 -1BR 585 -695 $6,804 -$6,988 $10.05 -$11.63 - Total Memory Care 313 25 Specialty Care Edina - East & West 2004 6 0 6 -Pvt. Rm 168 -168 $9,000 -$10,500 $53.57 -$62.50 6804 Dovre Dr Skilled Nursing Aurora on France 2016 63 4 50 -Pvt. Rm 180 -200 $186 -$484 $1.03 -$2.42 6500 France Ave S 13 -Dbl. Rm 180 -200 $186 -$484 $1.03 -$2.42 Edenbrook Edina 1971 85 0 18 -Pvt. Rm 180 -200 $186 -$484 $1.03 -$2.42 6200 Xerxes Ave S 67 -Dbl. Rm 180 -200 $186 -$484 $1.03 -$2.42 Total Skilled Nursing 148 4 Total Senior Units (excl. SNF)2,311 133 N/A: Not Applicable. * Per day rates reflect 30-day monthly rate. Rent Ranges Sale Price November/December 2019 (continued) Market/Base Monthly Rent/Rent/Sales Price/PSF TABLE A-1 SENIOR HOUSING PROPERTIES EDINA The Waters of Edina is 55+ and has a fitness center, spa, in unit washer/dryer, clubhouse, & kitchen. Aditionally, dogs up to 30 lbs are allowed. Fitness center, pool, business center, in unit wahser/dryer, salon, lounge, fitness center, library, and solarium. Transitional Care Unit; also provide respite care; offer bariatric care hospice, oxygen therapy; infection care. Pvt/dbl rooms; Pvt room additional $36/day There are 66 assisted living, and 30 memory care units. In unit washer/dryer, fitness room, kitchen, chapel, salon, lounge, bistro/pub room with 1-3 meals per day, and underground parking ($75/mo). Facility is 55+ and pet limit is 25 lbs. Twin home with six bedrooms; 24/7 care provided; residence equipped with adaptive devices for Parkinson's patients; three meals per day plus snacks; transportation to appointments; activities; hskp/laundry; foot care; personal care, med-set-up and mgmt. Source: Maxfield Research and Consulting LLC Daily meals and housekeeping; outdoor terrace and garden courtyard; front desk concierge; van transportation; Additional care package cost is $4,750 ro $8,100. Flexible meal options, housekeeping, barber shop, wellness checks, utilities included, and underground parking ($60/mo). Admission 24 hours per day. Nursing and respite care. $3,150 - $6,150 Additional Care Level Packages DEFINITIONS MAXFIELD RESEARCH AND CONSULTING, LLC 245 Definitions Absorption Period – The amount of time necessary for newly constructed or renovated proper- ties to achieve the stabilized level of occupancy. The absorption period begins when the first certificate of occupancy is issued and ends when the last unit to reach the stabilized level of oc- cupancy has signed a lease. Absorption Rate – The average number of units rented each month during the absorption pe- riod. Active adult (or independent living few/no services available) – Active Adult properties are similar to a general-occupancy apartment building, in that they offer virtually no services but have age-restrictions (typically 55 or 62 or older). Organized activities and occasionally a trans- portation program are usually all that are available at these properties. Because of the lack of services, active adult properties typically do not command the rent premiums of more service- enriched senior housing. Adjusted Gross Income “AGI” – Income from taxable sources (including wages, interest, capital gains, income from retirement accounts, etc.) adjusted to account for specific deductions (i.e. contributions to retirement accounts, unreimbursed business and medical expenses, alimony, etc.). Affordable housing (shallow-subsidy) – Housing that is income-restricted to households earn- ing at or below 80% AMI, though individual properties can have income-restrictions set at 30%, 50%, 60% or 80% AMI. Rent is not based on income but instead is a contract amount that is af- fordable to households in the specific income restriction segment. Housing programs such as Section 42 and Low-Income Housing Tax Credit (LIHTC) and various municipal bonding programs often fall into this category. Housing is affordable to moderate, low and very low-income resi- dents, according to definitions published by the Department of Housing and Urban Develop- ment. The lowest income level (30%) is often reserved for units targeted to long-term or chronic homeless. Amenity – Tangible or intangible benefits offered to a tenant in the form of common area amenities or in-unit amenities. Typical in-unit amenities include dishwashers, washer/dryers, walk-in showers and closets and upgraded kitchen finishes. Typical common area amenities in- clude detached or attached garage parking, community room, fitness center and an outdoor pa- tio or grill/picnic area. Area Median Income “AMI” – AMI is the midpoint in the income distribution within a specific geographic area. By definition, 50% of households earn less than the median income and 50% earn more. The U.S. Department of Housing and Urban Development (HUD) calculates AMI an- nually and adjustments are made for family size. DEFINITIONS MAXFIELD RESEARCH AND CONSULTING, LLC 246 Assisted Living – Assisted Living properties come in a variety of forms, but the target market for most is generally the same: very frail seniors, typically age 80 or older (but can be much younger, depending on their particular health situations), who are in need of extensive support services and personal care assistance. Absent an assisted living option, these seniors would otherwise need to move to a nursing facility. At a minimum, assisted living properties include two meals per day and weekly housekeeping in the monthly fee, with the availability of a third meal and personal care (either included in the monthly fee or for an additional cost). Assisted living properties also have either staff on duty 24 hours per day or at least 24-hour emergency response. Building Permit – Building permits track housing starts and the number of housing units author- ized to be built by the local governing authority. Most jurisdictions require building permits for new construction, major renovations, as well as other building improvements. Building permits ensure that all the work meets applicable building and safety rules and is typically required to be completed by a licensed professional. Once the building is complete and meets the inspec- tor’s satisfaction, the jurisdiction will issue a “CO” or “Certificate of Occupancy.” Building per- mits are a key barometer for the health of the housing market and are often a leading indicator in the rest of the economy as it has a major impact on consumer spending. Capture Rate – The percentage of age, size, and income-qualified renter households in a given area or “Market Area” that the property must capture to fill the units. The capture rate is cal- culated by dividing the total number of units at the property by the total number of age, size and income-qualified renter households in the designated area. Comparable Property – A property that is representative of the rental housing choices of the designated area or “Market Area” that is similar in construction, size, amenities, location and/or age. Concession – Discount or incentives given to a prospective tenant to induce signature of a lease. Concessions typically are in the form of reduced rent or free rent for a specific lease term, or free amenities, which are normally charged separately, such as parking. Congregate (or independent living with services available) – Congregate properties offer sup- port services such as meals and/or housekeeping, either on an optional basis or a limited amount included in the rents. These properties typically dedicate a larger share of the overall building area to common areas, in part, because the units are smaller than in adult housing and in part to encourage socialization among residents. Congregate properties attract a slightly older target market than adult housing, typically seniors age 75 or older. Rents are also above those of the active adult buildings, even excluding the services. Contract Rent – The actual monthly rent payable by the tenant, including any rent subsidy paid on behalf of the tenant, to the owner, inclusive of all terms of the lease. DEFINITIONS MAXFIELD RESEARCH AND CONSULTING, LLC 247 Demand – The total number of households that would potentially move into a proposed new or renovated housing project. These households must be of appropriate age, income, tenure and size for a specific proposed development. Components vary and can include, but are not lim- ited to: turnover, people living in substandard conditions, rent over-burdened households, in- come-qualified households and age of householder. Demand is project specific. Density – Number of units in a given area. Density is typically measured in dwelling units (DU) per acre – the larger the number of units permitted per acre the higher the density; the fewer units permitted results in lower density. Density is often presented in a gross and net format: • Gross Density – The number of dwelling units per acre based on the gross site acreage. Gross Density = Total residential units/total development area • Net Density - The number of dwelling units per acre located on the site, but excludes public right-of-ways (ROW) such as streets, alleys, easements, open spaces, etc. Net Density = Total residential units/total residential land area (excluding ROWs) Detached housing – a freestanding dwelling unit, most often single-family homes, situated on its own lot. Effective Rents – Contract rent less applicable concessions. Elderly or Senior Housing – Housing where all the units in the property are restricted for occu- pancy by persons age 62 years or better, or at least 80% of the units in each building are re- stricted for occupancy by households where at least one household member is 55 years of age or better and the housing is designed with amenities, facilities and services to meet the needs of senior citizens. Extremely low-income – person or household with incomes below 30% of Area Median In- come, adjusted for respective household size. Fair Market Rent – Estimates established by HUD of the Gross Rents needed to obtain modest rental units in acceptable conditions in a specific geographic area. The amount of rental income a given property would command if it were open for leasing at any given moment and/or the amount derived based on market conditions that is needed to pay gross monthly rent at mod- est rental housing in a given area. This figure is used as a basis for determining the payment standard amount used to calculate the maximum monthly subsidy for families on at financially assisted housing. Fair Market Rent – Hennepin County 2016 EFF 1BR 2BR 3BR 4BR Fair Market Rent $656 $813 $1,027 $1,444 $1,693 Fair Market Rent DEFINITIONS MAXFIELD RESEARCH AND CONSULTING, LLC 248 Floor Area Ratio (FAR) Ratio of the floor area of a building to area of the lot on which the building is located. Foreclosure – A legal process in which a lender or financial institute attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by using the sale of the house as collateral for the loan. Gross Rent – The monthly housing cost to a tenant which equals the Contract Rent provided for in the lease, plus the estimated cost of all utilities paid by tenants. Maximum Gross Rents for Hennepin County in 2016 are as follows: Gross Rent Hennepin County – 2016 Household – All persons who occupy a housing unit, including occupants of a single-family, one person living alone, two or more families living together, or any other group of related or unre- lated persons who share living arrangements. Household Trends – Changes in the number of households for any particular areas over a meas- urable period of time, which is a function of hew households formations, changes in average household size, and met migration. Housing Choice Voucher Program – The federal government's major program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. A family that is issued a housing voucher is responsible for finding a suit- able housing unit of the family's choice where the owner agrees to rent under the program. Housing choice vouchers are administered locally by public housing agencies. They receive fed- eral funds from the U.S. Department of Housing and Urban Development (HUD) to administer the voucher program. A housing subsidy is paid to the landlord directly by the public housing agency on behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program. EFF 1BR 2BR 3BR 4BR 30% of median $450 $514 $579 $643 $695 50% of median $751 $857 $965 $1,072 $1,158 60% of median $901 $1,029 $1,158 $1,287 $1,390 80% of median $1,202 $1,372 $1,544 $1,716 $1,854 100% of median $1,502 $1,715 $1,930 $2,145 $2,317 120% of median $1,803 $2,058 $2,316 $2,574 $2,781 Maximum Gross Rent DEFINITIONS MAXFIELD RESEARCH AND CONSULTING, LLC 249 Housing unit – House, apartment, mobile home, or group of rooms used as a separate living quarters by a single household. HUD Project-Based Section 8 – A federal government program that provides rental housing for very low-income families, the elderly, and the disabled in privately owned and managed rental units. The owner reserves some or all the units in a building in return for a Federal government guarantee to make up the difference between the tenant's contribution and the rent. A tenant who leaves a subsidized project will lose access to the project-based subsidy. HUD Section 202 Program – Federal program that provides direct capital assistance and operat- ing or rental assistance to finance housing designed for occupancy by elder household who have incomes not exceeding 50% of Area Median Income. Section 202 programs are currently reserved for sites that are in qualified low-income census tracts. HUD Section 811 Program – Federal program that provides direct capital assistance and operat- ing or rental assistance to finance housing designed for occupancy of persons with disabilities who have incomes not exceeding 50% Area Median Income. HUD Section 236 Program – Federal program that provides interest reduction payments for loans which finance housing targeted to households with income not exceeding 80% Area Me- dian Income who pay rent equal to the greater or market rate or 30% of their adjusted income. Income limits – Maximum households income by a designed geographic area, adjusted for household size and expressed as a percentage of the Area Median Income, for the purpose of establishing an upper limit for eligibility for a specific housing program. Inflow/Outflow – The Inflow/Outflow Analysis generates results showing the count and charac- teristics of worker flows in to, out of, and within the defined geographic area. Low-Income – Person or household with gross household incomes below 80% of Area Median Income, adjusted for household size. 1 pph 2 phh 3 phh 4 phh 5 phh 6 phh 7 phh 8 phh 30% of median $18,030 $20,580 $23,160 $25,740 $27,810 $29,850 $31,920 $33,990 50% of median $30,050 $34,300 $38,600 $42,900 $46,350 $49,750 $53,200 $56,650 60% of median $36,060 $41,160 $46,320 $51,480 $55,620 $59,700 $63,840 $67,980 80% of median $48,080 $54,880 $61,760 $68,640 $74,160 $79,600 $85,120 $90,640 100% of median $60,100 $68,600 $77,200 $85,800 $92,700 $99,500 $106,400 $113,300 120% of median $72,120 $82,320 $92,640 $102,960 $111,240 $119,400 $127,680 $135,960 Income Limits by Household Size DEFINITIONS MAXFIELD RESEARCH AND CONSULTING, LLC 250 Low-Income Housing Tax Credit – A program aimed to generate equity for investment in af- fordable rental housing authorized pursuant to Section 42 of the Internal Revenue Code. The program requires that a certain percentage of units built be restricted for occupancy to house- holds earning 60% or less of Area Median Income, and rents on these units be restricted ac- cordingly. Market analysis – The study of real estate market conditions for a specific type of property, ge- ographic area or proposed (re)development. Market rent – The rent that an apartment, without rent or income restrictions or rent subsi- dies, would command in a given area or “Market Area” considering its location, features and amenities. Market study – A comprehensive study of a specific proposal including a review of the housing market in a defined market or geography. Project specific market studies are often used by de- velopers, property managers or government entities to determine the appropriateness of a pro- posed development, whereas market specific market studies are used to determine what house needs, if any, existing within a specific geography. Market rate rental housing – Housing that does not have any income-restrictions. Some prop- erties will have income guidelines, which are minimum annual incomes required in order to re- side at the property. Memory Care – Memory Care properties, designed specifically for persons suffering from Alz- heimer’s disease or other dementias, is one of the newest trends in senior housing. Properties consist mostly of suite-style or studio units or occasionally one-bedroom apartment-style units, and large amounts of communal areas for activities and programming. In addition, staff typi- cally undergoes specialized training in the care of this population. Because of the greater amount of individualized personal care required by residents, staffing ratios are much higher than traditional assisted living and thus, the costs of care are also higher. Unlike conventional assisted living, however, which deals almost exclusively with widows or widowers, a higher pro- portion of persons afflicted with Alzheimer’s disease are in two-person households. That means the decision to move a spouse into a memory care facility involves the caregiver’s con- cern of incurring the costs of health care at a special facility while continuing to maintain their home. Migration – The movement of households and/or people into or out of an area. Mixed-income property – An apartment property contained either both income-restricted and unrestricted units or units restricted at two or more income limits. Mobility – The ease at which people move from one location to another. DEFINITIONS MAXFIELD RESEARCH AND CONSULTING, LLC 251 Moderate Income – Person or household with gross household income between 80% and 120% of the Area Median Income, adjusted for household size. Multifamily – Properties and structures that contain more than two housing units. Naturally Occurring Affordable Housing – Although affordable housing is typically associated with an income-restricted property, there are other housing units in communities that indi- rectly provide affordable housing. Housing units that were not developed or designated with income guidelines (i.e. assisted) yet are more affordable than other units in a community are considered “naturally-occurring” or “unsubsidized affordable” units. This rental supply is avail- able through the private market, versus assisted housing programs through various governmen- tal agencies. Property values on these units are lower based on a combination of factors, such as: age of structure/housing stock, location, condition, size, functionally obsolete, school dis- trict, etc. Net Income – Income earned after payroll withholdings such as state and federal income taxes, social security, as well as retirement savings and health insurance. Net Worth – The difference between assets and liabilities, or the total value of assets after the debt is subtracted. Pent-up demand – A market in which there is a scarcity of supply and as such, vacancy rates are very low or non-existent. Population – All people living in a geographic area. Population Density – The population of an area divided by the number of square miles of land area. Population Trends – Changes in population levels for a specific geographic area over a specific period– a function of the level of births, deaths, and in/out migration. Project-Based rent assistance – Rental assistance from any source that is allocated to the prop- erty or a specific number of units in the property and is available to each income eligible tenant of the property or an assisted unit. Redevelopment – The redesign, rehabilitation or expansion of existing properties. Rent burden – gross rent divided by adjusted monthly household income. Restricted rent – The rent charged under the restriction of a specific housing program or sub- sidy. DEFINITIONS MAXFIELD RESEARCH AND CONSULTING, LLC 252 Saturation – The point at which there is no longer demand to support additional market rate, affordable/subsidized, rental, for-sale, or senior housing units. Saturation usually refers to a particular segment of a specific market. Senior Housing – The term “senior housing” refers to any housing development that is re- stricted to people age 55 or older. Today, senior housing includes an entire spectrum of hous- ing alternatives. Maxfield Research Inc. classifies senior housing into four categories based on the level of support services. The four categories are: Active Adult, Independent Living, As- sisted Living and Memory Care. Short Sale – A sale of real estate in which the net proceeds from selling the property do not cover the sellers’ mortgage obligations. The difference is forgiven by the lender, or other ar- rangements are made with the lender to settle the remainder of the debt. Single-family home – A dwelling unit, either attached or detached, designed for use by one household and with direct street access. It does not share heating facilities or other essential electrical, mechanical or building facilities with another dwelling. Stabilized level of occupancy – The underwritten or actual number of occupied units that a property is expected to maintain after the initial lease-up period. Subsidized housing (Deep-subsidy) – Housing that is income-restricted to households earning at or below 50% AMI. Rent is based on income, with the household contributing 30% of their adjusted gross income toward rent. Some programs may set a specific rent where households may qualify based on 30% or less of AMI. This is also designated as “deep subsidy” housing. This housing targets households with extremely low incomes, according to HUD definitions. Subsidy – Monthly income received by a tenant or by an owner on behalf of a tenant to pay the difference between the apartment’s contract/market rate rent and the amount paid by the ten- ant toward rent. Substandard conditions – Housing conditions that are conventionally considered unacceptable and can be defined in terms of lacking plumbing facilities, one or more major mechanical or electrical system malfunctions, or overcrowded conditions. Target population – The market segment or segments of the given population a development would appeal or cater to. Tenant – One who rents real property from another individual or rental company. Tenant-paid utilities – The cost of utilities, excluding cable, telephone, or internet necessary for the habitation of a dwelling unit, which are paid by said tenant. Tenure – The distinction between owner-occupied and renter-occupied housing units. DEFINITIONS MAXFIELD RESEARCH AND CONSULTING, LLC 253 Turnover – A measure of movement of residents into and out of a geographic location. Turnover period – An estimate of the number of housing units in a geographic location as a per- centage of the total house units that will likely change occupants in any one year. Unrestricted units – Units that are not subject to any income or rent restrictions. Vacancy period – The amount of time an apartment remains vacant and is available on the market for rent. Workforce housing – Housing that is income-restricted to households earning between 80% and 120% AMI. Also referred to as moderate-income housing. Zoning – Classification and regulation of land use by local governments according to use catego- ries (zones); often also includes density designations and limitations