Laserfiche WebLink
LOC'i; <br />CONSULTING <br />Market Analysis for Downtown Redevelopment <br />City of Centerville Economic Development Authority <br />April 3, 2023 <br />3.8 Average Rent for Multifamily in the PMA and Metro Area <br />$1,450 $1,375 —,, $1,400 <br />$1,350 <br />m $1,250 <br />m $1,150 <br />m <br />$1,050 <br />$950 <br />$850 <br />$750 <br />a a a a a a a a a a <br />02 07 d? U d N N <br />N N N N N N <br />N CM o a o o a o a o 0 <br />N N N N N N N <br />■ PMA , Minneapolis Market <br />Data is Q1 2017 to Q4 2022 <br />Source: Costar; LOCI Consulting LLC <br />rose above 5.0% in the first quarter of 2020 and <br />has remained above that level since. <br />■ The vacancy rate for the PMA was 5.1% in the <br />fourth quarter of 2022. In general, the vacancy <br />rate in the PMA has been lower than the Metro <br />Area vacancy rate. <br />■ The average rent in the Twin Cities Market was <br />$1,400 per month. Average rents have risen about <br />3% per year across the market as a whole. <br />■ The average rent in the PMA was $1,375 per <br />month in the fourth quarter of 2022. Reflecting <br />the lower vacancy, rents have increased 6.8% per <br />year since the fourth quarter of 2019. <br />Profile of Newer Rental Properties in <br />the Downtown Centerville PMA <br />LOCI Consulting profiled recently constructed rental <br />developments in the Downtown Centerville PMA. <br />These properties are profiled to best understand <br />average rents, occupancies, and features and <br />amenities that are currently being offered in the <br />marketplace. <br />Figure 3.9 shows the rental properties identified and <br />profiled in the PMA. The inventory focused on <br />properties built in the last five years. It does not <br />include age -restricted apartments. Those properties <br />are discussed in the next section. Also excluded are <br />newer mixed -use buildings, which are profiled in the <br />fifth section of this report (Page 74). Map 3.10 <br />shows the location of these properties. <br />Income -Restricted Rental Properties <br />■ Three newer income -restricted properties were <br />identified in the PMA—two in Forest Lake and <br />one in Hugo. These properties total 143 units. <br />■ Income restrictions can vary by property and by <br />specific unit. Income restrictions range from 30% <br />to 60% of Area Median Income. Rents are <br />restricted based on the specific income <br />restrictions for the particular unit. <br />■ There are zero vacancies in the newer income <br />restricted properties. Building managers said <br />these properties stay full and vacant units fill <br />quickly. <br />Page 46 <br />