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LOC Market Analysis for Downtown Redevelopment <br />CONSULTN G City of Centerville Economic Development Authority <br />April 3, 2023 <br />3. Multifamily Residential Market Analysis <br />This section presents data on the multifamily <br />housing market in the Centerville Primary Market <br />Area (PMA). The review includes the for -sale <br />housing market for both existing and newly <br />constructed homes, the multifamily rental housing <br />market, and the senior housing market. Because of <br />their densities, these housing types would most <br />likely be considered for redevelopment in <br />Downtown Centerville. <br />For -Sale Housing Trends <br />LOCI Consulting collected data on the for -sale home <br />market in the Downtown Centerville PMA—both <br />single-family detached homes and attached <br />townhomes and condominiums. The data includes <br />almost all existing home transactions and most of <br />the new construction transactions. The data is <br />collected from the Minneapolis Area Association of <br />Realtors. <br />Figure 3.1 shows closed real estate transactions in <br />the PMA between 2018 and 2022. Figure 3.2 shows <br />the median sale price for single-family detached <br />homes. Figure 3.3 shows the median sale price for <br />attached townhomes and condominiums. Figures <br />3.2 and 3.3 show comparisons between the City of <br />Centerville, the PMA, and the Metro Area. (Note that <br />the City of Centerville is also included in the PMA <br />data.) Figure 3.6 shows the average days on the <br />market for homes in the PMA over the period. <br />■ Between 2019 and 2020, total transactions <br />increased 18%, reflecting the increased demand <br />for housing driven by the COVID19 pandemic and <br />low interest rates. <br />■ Overall sales declined 24% in 2022, as the effects <br />of higher interest rates pushed down overall <br />demand and slower housing production. <br />Over this period, attached townhome and <br />condominium sales have made up about one in <br />four transactions in the PMA. <br />3.1 Closed Residential Transactions in the Downtown Centerville PMA <br />1,630 1,562 <br />1,415 1,341 <br />1,152 <br />0 <br />U <br />M <br />C <br />+� 541 492 533 485 <br />401 <br />2018 2019 2020 2021 2022 <br />■Single -Family Detached Homes oAttached Townhomes and Condominiums <br />Source: Minneapolis Area Association of Realtors; LOCI Consulting LLC <br />Page 138 <br />