01-22-08 1B Market Study - Laserfiche WebLink

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HOUSING RECOMMENDATIONS Sin!!le-familv Homes Recommended For-sale Products Table 34 shows that there is a projected demand for over 800 single-family homes on the TCAAP site between 2008 and 2020. We understand that this far exceeds the number that could likely be built on the site, as redevelopment costs require an overall higher density of housing units than single-family alone can provide. However, the TCAAP site is well positioned to cap- ture single-family demand as it is a unique "destination site" within approximately 10 miles of both downtowns. There is limited competition for new single-family homes within the surround- ing area, or closer to the core of the Twin Cities where much of Metro's job base is located. Preliminary plans are for about 130 single-family homes on the site, which we find supportable. Table 35 presents our recommendations for single-family homes on the site, based on a concept that limits the total number of housing units to 1,750 ("Option B"). The table illustrates recom- mended lot pricing and sizing based on the suggested housing types. The lot and home prices will vary based on location within the development, views, lot topography, configuration, and overall lot size. TABLE 35 RECOMMENDED SINGLE-FAMILY HOUSING CONCEPT TCAAP SITE January 2008 Total Lot Size Recommended Lot Estimated Housiug Type Lots Ranges (Sq. Ft.) Price Ranges Home Valuesl Executive 130- 140 14,500 - 18,000 $135,000 - $250,000 $550,000 - $ J ,000,000 M ave-up 180 - 190 10,000 - It ,500 $100,000 - $120,000 $375,000 - $475,000 310 - 330 I Assumes lot cost is 25% of retail home sales price. Horne values will vary based on buyer's finishing and upgrade preferences. Lot cost will probably vary from 20% to 30% of purchase price. Note: Lot pricing is quoted in 2008 dollars. Source: Maxfield Research Inc. We recommend that 130 to 140 of the single-family homes be larger-lot executive homes with sales prices of $550,000 to $1,000,000 in 2008 dollars. We anticipate that with optional up- grades, most of the executive homes built would be priced at about $650,000+. Lot sizes for the larger executive style homes are typically about 14,500 square feet and larger, with prices of $135,000+ per lot. . The remaining 180 to 190 single-family homes should be on lots of about 10,000 to 11,500 square feet with home prices of$375,000 to $475,000. The corresponding lot prices should be MAXFIELD RESEARCH INC. 84