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2014 Windom Housing Market Analysis

This analysis highlights the demographic and employment trends, housing stock, and housing demand in Windom. Recommendations are provided for new construction, flood insurance, housing rehabilitation, and rental programs.

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2014 Windom Housing Market Analysis

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  1. 2014 Windom Housing Market Analysis Prepared for: EDA of Windom / Windom HRA Prepared by: Viewpoint Consulting Group, Inc. Date: May 20, 2014 Viewpoint Consulting Group, Inc. 9104 Barrington Terrace Brooklyn Park, MN 55443 763-273-4303 www.viewpointconsult.com

  2. Windom’s Primary Market Area

  3. Demographic Highlights • Windom grew by 3.5% last decade and is projected to continue growing this decade, reaching a population of 4,850 in 2020. • Incomes in Windom are modest ($34,614 median household income in 2013 compared to $56,704 statewide). • Windom has a high percentage of single households (36%), but renters with 3+ persons is growing fast (84 HH in 2000 and 145 HH in 2010). • Older adults and seniors are experiencing the greatest growth, but younger persons are growing as well.

  4. Demographic Highlights

  5. Demographic Highlights Distribution of Windom’s Households by Income & Tenure • 52% of Windom’s households with incomes under $35,000 were cost burdened (spent 30%+ of gross income on housing)

  6. Employment Highlights Source: US Census Bureau – Local Employment Dynamics

  7. Employment Highlights • In 2011, 65% of Windom’s jobs were filled by people living outside the community. • Manufacturing is the largest employment sector in Windom (Toro and PM Beef). • There is a need for more housing in Windom for local employees. Representatives of major employers state that Windom has a shortage of housing – particularly rentals and mid-priced homes to purchase ($75,000 to $150,000). • Quality of existing rentals in Windom available to local workers was an issue raise by some major employers.

  8. Age of Windom’s Housing Stock

  9. Windom Owner-OccupiedHousing Trends • Windom’s for-sale housing market is stable (Avg. resale price of about $97,000 for four straight years). • About 50 homes were built in Windom last decade, only one twinhome (2 units) has been built this decade. • Windom has a very limited supply of available lots for new construction homes.

  10. June Court

  11. Windom High School

  12. River Bluff Estates

  13. Windom Owner-OccupiedHousing Trends Source: Cottonwood County Assessor’s Office

  14. Windom Rental Housing Trends • River Bluff Townhomes is “affordable,” but is the market leader. It has monthly rents of $615/2BR and $665/3BR. • River Bluff Townhomes were built in 2001. Windom’s other market rate housing is older than 35 years. • Older market rate properties have average monthly rents of $475/2BR and $550/3BR. • About half of Windom’s renters live in single-family homes & duplexes.

  15. RiverviewApartments River Bluff Townhomes

  16. Windom Rental Housing Trends • 60% of Windom’s non-senior apartment units are subsidized (residents pay 30% of AGI for rent). • Windom had a 3.7% vacancy rate among its non-senior rental housing supply. • Windom has three senior housing with services buildings – Pineview AL, Mikkelsen Manor, and Remick Ridge Estates. • Four Housing Choice Vouchers are being used in Windom – 15 names from Windom are on a waiting list.

  17. Good Samaritan Society Campus

  18. Windom Housing Demand2014 - 2020 Demand Sources: Household Growth – to accommodate the projected increase in population Demand from outside Windom – capturing a small percentage of commuters Replacement Need – to replace functionally obsolete units that should be demolished Pent-up Rental Demand – units needed for the rental market to achieve stabilized occupancy (95%)

  19. 60% of Windom’s demand for new single-family homes is for entry-level prices ($155,000 - $185,000). • 60% of Windom’s demand for new rental units is from employees with household incomes of $30,000+. • A greater share of demand is for rental/senior housing than for owner-occupied housing. Windom Housing Demand

  20. Windom Housing Demand2014 - 2020

  21. Windom Housing RecommendationsNew Construction, 2014 - 2020

  22. Windom Housing Recommendations2014 - 2020 • Bring new subdivisions for single-family homes and townhomes on-line by 2015 • Add a mix of rental housing (including re-use of Homes for Creative Living building) • Flood Insurance Rate Map Redrawing • Dilapidated Housing Demolition Program • Rental Registration Program • Continue housing rehabilitation programs • Promote use of Housing Choice Vouchers • Termite Mitigation

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