HomeMy WebLinkAboutItem 03M
Lakeville
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Memorandum
Item #3
City of Lakeville
Community & Economic Development
To: Mayor and City Council
Steven Mielke, City Administrator
From: David L. Olson, Community & Economic Development Director
Cc: EDC Members
Daryl Morey, Planning Director
Date: June 19, 2014
Subject: Presentation of Comprehensive Housing Needs Assessment by Maxfield Research
and Dakota County CDA
The Dakota County CDA contracted with Maxfield Research in 2013 to complete a
comprehensive housing needs assessment for Dakota County. This was completed by doing
an analysis of demographic growth trends and characteristics, the county's existing housing
stock, and current housing market conditions. The Housing Needs Assessment calculated
the housing demand in the County to 2030 and recommends housing products to meet
demand between now and 2020.
The attached Summary of Findings contains the needs and recommendations specific to
Lakeville. Mary Bujold of Maxfield Research along with Dakota County CDA staff will present
the results of this Housing Needs Assessment at Monday's Work Session. This presentation
was made to the EDC at their February Meeting and EDC members have been invited to the
Work Session.
The completion of this Housing Needs Assessment dovetails well with the City's recently
adopted 2014-16 Strategic Plan for Economic Development. One of the strategic priorities of
this Strategic Plan is High Density Housing and a number of Strategic Initiatives have been
identified for this priority and are high -lighted in the attached Strategic Plan Outline.
The first initiative under the Strategic Plan is to develop and adopt "housing goals". Staff
suggests that the Housing Needs Assessment recently completed by Maxfield Research be
the basis for the development these housing goals.
Action Requested:
The Council is encouraged to ask questions and provide feedback on the findings contained
in the assessment. The Council is also requested to indicate whether you are in agreement
with findings and recommended actions becoming the basis for the development City
"housing goals."
City Coundi/EDCJoint Meeting
November 12, 2013
Page -3-
6) High density housing
The three-year strategic plan recommends 12 scattered high density housing sites by
2016. This would require re -guiding or rezoning of land in commercial/industrial
zones in order to allow high density housing. Tushie stated that high density can
imply various lifestyles and types of housing, but includes high-end, luxury housing,
often occupied by empty -nesters, near retail opportunities. Swecker asked what the
current market is for high density. Tushie stated that people want to have the option
of living near their work, or near public transit, so those amenities are critical. Council
members did not totally support high density housing in industrial zoning because of
potential incompatibility. High density can indicate subsidized or market rate units;
allowing high density housing in commercial and industrial areas provides additional
opportunities and options.
To recap, Mr. Rapp stated that the Strategic Plan for Economic Development consists of
priorities, indicators of success, and a set of initiatives. Staff will discuss an action plan
with the EDC.
3. Adjourn
Mayor Little adjourned the meeting at 6:15 p.m.
Respectfully submitted,
A
J IlHawkins, Deputy Clerk
ZOO�; -
MarKittle, Mayor
Economic Deveaopment Commission Strategic Plan Outline 2014-2016
Strategic
Key Outcome
Measure
Target
Strategic Initiatives
Priority
Indicator (KOI)
High Skill, High
High quality jobs
New jobs over
200 btwn 1/1/14-
a) Conduct mkt. analysis to determine target
Wage Jobs
$60k
12/31/16
mkts.-special emphasis- higher ed
b) Develop strategy to leverage existing
business partners, vendors, alliances for
job creation
c) Correlate incentive packages for high
skill/high wage jobs with overall incentive
strategy
Infrastructure to
Infrastructure
Developer need
95% of time- has
a) Develop detailed infrastructure plans to
Leverage
capacity and
meet developer needs
Opportunities
mechanisms to
b) Explore infrastructure financing methods
meet needs
c) Analyze provider -city
partnership/relationship opportunities
County support
Cost sharing
County supports &
d) Initiate and participate in city -county
shares cost 90% of
discussions
time
Business
Existing businesses
Square footage
500k sq. ft. added
a) Expand/enhance the business outreach
Retention and
of expansions
1/1/14-12/31/16
program
Expansion
Existing businesses
Employment
300 jobs added
b) Analyze expanded methods for increased
growth
1/1/14 —12/31/16
business contacts
Existing businesses
Retention
90 % of existing
c) Evaluate city business expansion
non -retail
requirements for streamlining
businesses retained
opportunities
Incentives and
New business
Leveraged
3 new businesses
a) Expand marketing strategy to ensure
Tools to Achieve
development
investment
via tools/leverage
alignment w/ Lakeville success factors and
Success
btwn 1/14-12/16
current incentive policies
b) Establish EDC/City Council consensus on
incentive policies, assumptions, ROI,
priority locations
Enhancing a Pro-
RE Developers
Satisfaction w/
90% satisfied-
a) Continue and enhance surveys of
Business Climate
city processes
survey
contractors, developers, and businesses
b) Develop a concise "development review
process" document
Existing businesses
Business
90% good place to
c) Conduct a professionally administered
environment
operate, expand,
and statistically valid business survey
locate
every 3 years
d) Create "internal brand champions" to
market/communicate Lakeville's benefits
internally
High Density
Housing
Sites reguided for
12 scattered sites
a) Adopt city "housing goals"
Housing
high density
btwn 1/1/14-
b) Develop an economic development
12/31/16
housing strategy
C/I zoned districts
C/I districts with
All C/I zones
c) Determine C/I high-density housing
hsg allowed
changed to permit
demand
hsg by 12/31/16
d) Create a plan to address expanded
housing options in C/I zoning districts
Dakota County Submarkets ➢ Consistent with 2005 study
➢ 3 Primary Submarkets
➢ Developed
• Cities with limited land available for new
development
➢ Growth
■ Cities with a higher proportion of land
available for new development
• Lakeville is in this category
➢ Rural
■ Rural towns and townships; most of
these areas are likely to remain low
density
,r, DII.�kO•v.G�ums,
�C4rtvM1'RM^mtl Demographics
CDA a
Projections compiled by Maxfield Research considered a thorough review of several
factors (i.e. impact of recession/recovery, 2010 Census, building permits, recent
population and household growth estimates, etc.)
New Met Council 2030 projections have not yet been released
o Current projections by Met Council were based on pre -Recession growth trends
o Current Met Council 2040 projections reflect slower growth in suburban areas
o Maxfield Research Inc. compiled projections based on slightly slower growth to
2020 and then a higher level of growth between 2020 and 2030
Population Projection Comparison
Lakeville: 2000 to 2040
100,000
90,000 ---
80,000
g 20'1100
n 60,000 ✓'�F o
15 50,000
40.000
Z30,000
20,000
10,000
0
2000 2010 2020 2030 2040
Mel Council -2030 —F Mel Council -20x0 — Maxfield Research
• +49,525 households in Co. (2010-2030)
• +13,600 households in Lakeville (2010-2030)
• Limited increase in senior housing demand
until after 2020
o 55 - 74 age cohort — fastest growth rate
this decade
• Demand for additional housing
• 34,525 owned/15,100 rental in Co,
• 10,342 owned/3,284 rental in Lakeville
Millennials (ages 14-34 in 2014) largest age
cohort later this decade
■ Trend toward shrinking household sizes but
less in the Growth Communities
• High median household income
($71,360/2013 -Co.)
• Lakeville's median income ($75,889/2013)
Population Growth
1 2010 to t080
lessthan 1,000
1,001- 5,000
"5.001-15A00
�� lllll� 15,001- 26,000
Employment & Housing Demand
■ Job growth (2.000-7.010):
• +36,300 (+24%) - Co.
• +3,942 (+36%) — Lakeville
Job growth (2010-2020):
• +34,340 jobs (+19%) — Co.
• +7,992 jobs (54%) - Lakeville
• 11.0% Metro Area jobs in Dakota Co.
• Highest growth sectors in Lakeville (`00213):
• Health Services —167%
• Retail Trade -108%
■ Education — 60%
• Difference between owner/renter incomes
and incomes of Dakota Co. workers:
❑ Median HH income: $71,360
❑ $86,880 (owner) vs. $38,880 (renter)
❑ Avg. Dakota Co. wage: $50,180
tom.
a" ,LLQ
EmptOymerd Growth (}ol.)
MIO to 7030
020499
,�.. SW to 4.999
s,ow to 9,999
- -10,0110 a u,Sno
Lakeville and Dakota County Housing Demand Summary (2010 — 2030)
➢ Lakeville is projected to have higher proportions of owned single-family and
multifamily than the County primarily due to more land available for these
types of housing products
3
Comparison of Housing Demand -2010-2030
Lakeville and Dakota County
Sn%
45%
E0%
35%
3096
25%
2016
15%
10%
Sngle4amity For
-Sale MF For -Sale 55, Markel Rale Affordable
Market Rate
Affordable
Rental Rental
Senior
Senim
likeville .Dal,—U..V
3
COA
Metro Area Trends
➢ Current Preferred real estate asset class
➢ Majority of new product in the urban core
➢ Proposed Development: 750 units (Dakota Cty.)
➢ Proposed Development: 16,000+ units (Metro)
➢ New Market Rate Development: $1.75-$1.90 PSF
5% Vacancy = Market Equilibrium
Market Rate (Maxfield survey)
➢ 19,328 units 1 142 properties
➢ 1.6% vacancy rate 12.5% in Lakeville
➢ Average Rent:
➢ $931 Lakeville ($1.00 PSF) J$931 in County
Post -2000: $1,348-Lkvlle ($1.13 PSF)
1980-2000: $1,212-Lkvlle ($.98 PSF)
Pre -1980: $774-Lkevlle ($.89 PSF)
Proportion of Market Rate Rental Units by Decade
Lakeville and Dakota County
so
45
40
35
30
B 25
20
is
s15
0
Prior to 1950
19501969
19701979 1980-1989 1990-1999 2000 or later
=Lakeville ■Dakota County
Dlkote Wwty
p'f "y I c�ww oe..k+vA,u
CDA'9"
Number of Deep -Subsidy Rental Units
Comparison of Communities
Number of Shallow -Subsidy Rental Units
Comparison of Communities
140
Ip
� IN
160
ao
.General -Occupancy Deep -Subsidy
.and Shallow Subsidy
i
➢ 614 units (Deep -<50%) 113 properties
➢ 0 units in Lakeville
➢ 1,409 units (Shallow -50%-60%) 136 properties.
➢ 139 units 14 properties
➢ Effective vacancy rate of 0% with waiting lists
a+�
Cost Burdened Households (All Ages)
- - - Dakota County
➢ 31% of renters (10,418 HHs) pay 35% or more
of income for rent
➢ 21% of renters (7,028 HHs) pay 50% or more of
income for rent
Lakeville
➢ 34% of renters (661 HHs) pay 35% or more of
Income for rent
➢ 20% of renters (408 HHs) pay 50% or more of
income for rent
2
5 Iso
zaa
300
w
0
Number of Shallow -Subsidy Rental Units
Comparison of Communities
140
Ip
� IN
160
ao
.General -Occupancy Deep -Subsidy
.and Shallow Subsidy
i
➢ 614 units (Deep -<50%) 113 properties
➢ 0 units in Lakeville
➢ 1,409 units (Shallow -50%-60%) 136 properties.
➢ 139 units 14 properties
➢ Effective vacancy rate of 0% with waiting lists
a+�
Cost Burdened Households (All Ages)
- - - Dakota County
➢ 31% of renters (10,418 HHs) pay 35% or more
of income for rent
➢ 21% of renters (7,028 HHs) pay 50% or more of
income for rent
Lakeville
➢ 34% of renters (661 HHs) pay 35% or more of
Income for rent
➢ 20% of renters (408 HHs) pay 50% or more of
income for rent
2
o.xm. ca�iy
Icu,un.NraeN,wro�+
CDA
Dakota County Overall
➢
6,405 units 166 projects
➢
2.9%vacancyrate
➢
96% participation rate
Deep -Subsidy and Shallow -Subsidy
➢
771 units 1 12 properties
35
s 30
25
➢ 24 units I 1 property
➢
1,432 units 126 properties
➢ 202 units 1 3 properties
➢
Effective vacancy rate of 0% with
waiting lists
Market Rate*
➢ 4,202 units 128 properties Lakeville senior housing
➢ 3.9% vacancy rate 3 -market rate w/services
➢ 1,637 units Active -Adult 1 1.9% vac. rate Market Rate Vacancy = 16.0%
➢ 903 units Congregate 13.1% vac. rate
➢ 1,222 units Assisted Living 15.9% vac. rate
➢ 440 units Memory Care 17.7% vac. rate
• (Vacancy excludes three projects in initial lease -up)
5%-7% Vacancy= Market Equilibrium
- ct�A's>rr
For-Sale Market
■ Housing market rebounding
■ Permits issued for 398 SF in
Lakeville in 2013
■ Lender -mediated properties waning
■ Growth communities resuming for -
sale construction
Lot Supply
■ New plats low during downturn
■ Vacant developed lot supply at less
than 2 years (SF), 20+ years (MF) in
Lakeville
• Bank -owned lots still available
Average Home Resale Prices -Lakeville
2005 through 20131March)
SNcocoo
e 5350.000 �slnsro-r.'miiy
5300.000 p=ih
stso.aoo —
smoo0b
11so.000
nm dbo
l
S5o 00o
50 ,p ,y1.- ,p �'rq y ,r�
A9 ti 40 ^% 1a, .0010 Ioff 4C 1 -P
I Source. NTorthstar Muttmle Llstma Semce
5
Proportion of Senior Housing by Type
Lakeville and Dakota County
� eD
35
s 30
25
ao
� o
De pSubsidy SWIlowSubsidy MRAdult MRCongregate MRAssisted
MRMemory
Living
Care
Ukeville ■Dakota Co.
➢ 4,202 units 128 properties Lakeville senior housing
➢ 3.9% vacancy rate 3 -market rate w/services
➢ 1,637 units Active -Adult 1 1.9% vac. rate Market Rate Vacancy = 16.0%
➢ 903 units Congregate 13.1% vac. rate
➢ 1,222 units Assisted Living 15.9% vac. rate
➢ 440 units Memory Care 17.7% vac. rate
• (Vacancy excludes three projects in initial lease -up)
5%-7% Vacancy= Market Equilibrium
- ct�A's>rr
For-Sale Market
■ Housing market rebounding
■ Permits issued for 398 SF in
Lakeville in 2013
■ Lender -mediated properties waning
■ Growth communities resuming for -
sale construction
Lot Supply
■ New plats low during downturn
■ Vacant developed lot supply at less
than 2 years (SF), 20+ years (MF) in
Lakeville
• Bank -owned lots still available
Average Home Resale Prices -Lakeville
2005 through 20131March)
SNcocoo
e 5350.000 �slnsro-r.'miiy
5300.000 p=ih
stso.aoo —
smoo0b
11so.000
nm dbo
l
S5o 00o
50 ,p ,y1.- ,p �'rq y ,r�
A9 ti 40 ^% 1a, .0010 Ioff 4C 1 -P
I Source. NTorthstar Muttmle Llstma Semce
5
CDA
Housing Conditions
➢ Percent of buildings ranked 3 or higher has increased since 2005
➢ Percent of buildings ranked 2 has decreased by 37% since 2005
➢ CDA should continued to provide resources to improve housing quality through
Its key building improvement programs
❑ 1% of Lakeville's residential units ranked at 1-2 (poor quality)
❑ 24% of Lakeville's residential units ranked at 5-7 (high quality)
Building Quality Rating: Dakota County
2005 & 2013
ro
•o —
to
a so
€ 30
b 30
30
to -
a --
1 3 34 51
3013 ■ 1005
Summary
➢ There is pent-up demand for all income categories of rental housing
• Continue to explore housing finance tools to assist in the creation of additional mixed -
income housing
• Baby Boomers and Millennials will have greatest impacts on housing demand over the
next 20 years
Continued high need for Shallow (50% to 80%) and Deep -Subsidy Housing (less than 50%)
• Vacancies at lowest level in nearly ten years
• Challenging to find affordable housing, especially those with special needs or high
barriers
• We recommend the CDA develop 2 additional workforce housing properties and 2
additional affordable senior housing properties in Lakeville as resources allow across
the 20 -year time period. If wait lists continue to remain high, then additional properties
could be considered.
➢ For those with special needs, developments may be added throughout the County but should
especially be considered near transit opportunities.
For -sale market is rebounding in all submarkets, presently more activity occurring in
Developing Communities
• Lot supply is below the 3 -year benchmarkfor single-family across the County and also
in Lakeville
M
Wxou Co.�p
Wmvmi Onwwn�e
i^na W�+n
Questions ....
w ww.maxueloresearcn,c—
Mary Bujold
Maxfield Research Inc.
612.904.7977 tgtpp :lly _vk v,, late boo l..co_n-(pop
mbuiold@maxfieldresearch.com ns,10axfield-Research-Inc /
,tP�vu�w.iin4:edin_coiTlc_c
:any/rnaxfieitl-research_ ii�c
x1..
7
Summary of Findings
Lakeville Housing Needs and Recommendations
From the Report:
Comprehensive Housing Needs Assessment
For Dakota County, Minnesota
Prepared for:
Dakota County Community Development Agency
Eagan, Minnesota
February 2014
eld
Research Inc.
21 Nicollet Avenue S.
ite 218
Minneapolis, MN 55403
612.338.0012
Introduction
Maxfield Research Inc. was engaged by the Dakota County Community Development Agency
(Dakota County CDA) to complete an updated comprehensive housing needs assessment for
Dakota County. Based on an analysis of demographic growth trends and characteristics, the
County's existing housing stock, and current housing market conditions, the needs assessment
calculated housing demand in the County to 2030 and recommends housing products to meet
demand between now and 2020.
The following are key findings pertaining to Lakeville from the study, which was completed in
late fall 2013.
Key Demographic and Market Findings
1. Dakota County was grouped into three sub -
markets; as in 2005, Lakeville was placed into
the Growth Communities. Sites for new hous-
ing are limited in the Developed Communities
and the Rural Area is primarily reserved for ag-
ricultural uses.
2. Demand is projected for 49,525 new housing
units in Dakota County between 2010 and
2030. This includes about 34,750 new units in
the Growth Communities (70% of the total),
and about 13,628 new units in Lakeville.
3. Job growth is a key creator of housing de-
mand. From 2000 to 2010, Lakeville added
3,942 new jobs, which was slightly more than
half of what had originally been projected by
Dakota County Submarkets
County Submukets
w. Q Oevetoped Communities
C3Growth Communities
QRural Area
f
the Metropolitan Council for the decade. Nevertheless, Lakeville's job growth was the sec-
ond highest after Mendota Heights in Dakota County and accounted for about 12% of the
County's job growth during the 2000s. Lakeville is anticipated to seethe highest job growth
(53.6%) this decade for the County and is projected to command 20% of the County's job
growth through 2020.
Population, Household, and Employment Growth
Lakeville, 2020 to 2030
Change
2000 2010 2020 2030 2000-2030
Population 43,128 55,954 67,000 82,000 38,872
Households 13,609 18,683 23,000 29,800 16,191
Employment 10,966 14,908 22,900 27,400 16,434
Sources: US Census; Metropolitan Council; Maxfield Research Inc.
MAXFIELD RESEARCH INC. 1
4. As the adjacent chart shows,
Lakeville is expected to continue
to experience strong population
and household growth over the
next 20 years. Lakeville remains
poised to capture a large portion
of the County's household
growth between 2010 and 2030
(21%).
5. All age groups in Lakeville will in-
crease in population over the
next two decades. Growth is an-
yu,uUu
80,000
70,000
60,000
50,000
40,000
30,000
Projected Growth, Lakeville, 1990 to 2030
20,000
10,000
0`
1990 2000 2010 2020 2030
—Population —Households Employment
ticipated to be greatest among
those between the ages of 35 and 74. This will support continued demand for single-family
housing and a growing demand for maintenance -free housing to 2030. From 2010 to 2030,
Lakeville's 35 to 54 population
Distribution of the Adult Population
is projected to grow by 12,800 Lakeville, 2000 to 2030
people; the 55 to 74 category is
projected to grow by 11,700
people.
6. As of 2011, 38% of renters in
Lakeville were considered
"cost -burdened" or paid 35%
or more of their income for
rent (31% in Dakota County).
Of those considered "cost -
burdened," 20% were consid-
30,000
25,000
20,000
d
0 15,000
a
10,000
5,000
0
2000 2010 2011] 2030
18-34 _35.5:3 5">-7:1 _75+
ered "severely cost -burdened," paying 50% or more of their income for rent (21% in Dakota
County). Among owner households, 17% in Lakeville pay 35% or more of their income for
housing, with or without a mortgage (19.8% in the County). An estimated 8% pay 50% or
more of their income for housing (9.0% in the County).
7. Similar to the Metro Area and Dakota County as a whole, the market rate rental market in
Lakeville is tight (2.5% in Lakeville, 2.25% in Dakota County, 2.5% in the Metro). In addition,
demand for rental housing targeted to low- and moderate -income households remains
high. In Lakeville, there are four affordable family rental townhome projects, all of which
are essentially fully occupied.
8. Lakeville Woods, 75 market rate rental units, was built in 2007. This new building leased up
rapidly, despite opening during the Recession. Overall, Lakeville has a relatively low per-
centage of renter households (12.3%) compared to the County (23.5%) and the Metro
(30.0%) (2010 Census). The update analysis supports that 22% of all new housing added in
MAXFIELD RESEARCH INC. 2
Lakeville up to 2030 should be rental and that 47% of that rental construction be targeted
to households with moderate incomes.
9. In 2005, the average price of new
homes in Lakeville was calculated
at about $460,000 for single-family
homes and $225,000 for town-
homes/condominiums. The aver-
age sale price of new construction
homes in Lakeville was $326,714
for single-family homes and
$264,220 for townhomes/
condominiums as of April 2013.
New housing is primarily satisfying
demand from move -up and execu-
tive buyers, while older existing
homes are providing housing for entry-level and first-time buyers.
The median resale price
for single-family homes was $355,721 in 2005. As of 2013, the median resale price was
$266,475. Price deflation during the Recession, has resulted in existing homes becoming
more affordable, creating an increase in demand for this product type. The average resale
price of existing for -sale multifamily homes was $226,277. As of 2013, the average resale
price had decreased to $153,567.
In 2012 and early 2013, 460 new single-family lots were platted. Among the permits issued,
82 were for new housing units as of April 2013. Months of supply of single-family vacant
developed lots as of April 2013 were almost two years, just shy of the typical three year in-
ventory. Months of supply of townhome/condominium vacant developed lots as of April
2013 were much higher, more than 20 years. We anticipate that developers may request
some townhome lots to be re -platted for single-family homes in the short-term.
10. In 2005, Lakeville only had one subsidized project (24 units) targeted to very low income
seniors and two affordable rental projects. Over the past several years, three new market
rate senior housing developments have opened in Lakeville with a total of 345 units. All of
these properties offer a continuum of care including independent living with optional ser-
vices, assisted living and memory care. An additional affordable senior property was built in
2008, bringing the total to three senior properties targeted to seniors with moderate in-
comes (202 units).
MAXFIELD RESEARCH INC. 3
Housing Demand Calculations
11. The projected demand of an average of 13,628 housing units in Lakeville from 2010 to 2030
is shown by type below. These figures reflect the ability of Lakeville to draw some demand
from other nearby communities and from the Metro Area as a whole.
• For -sale single-family homes =
6,759
units (50%)
• For -sale multifamily =
3,583
units (26%)
• Rental market rate =
943
units (7%)
• Rental affordable/subsidized =
749
units (5%)
• Rental senior affordable =
608
units (5%)
• Rental senior market rate w/ services =
756
units -(5%)
• For -sale senior market rate —
230
units (2%)
Total =
13,628
units
12. Lakeville has an ample supply of residential land available for development and is projected
to continue to lead the County in the development of for -sale housing over the next 20
years. Projections indicate that Lakeville could add 10,500 units. Demand for rental hous-
ing too, is expected to increase substantially over the next 20 years. Over the next 20 years,
Lakeville is projected to have a demand for approximately 3,050 rental units among all in-
come levels. This total general occupancy and senior rental housing demand amounts to
22% of overall housing need. However, the proportion of households in Lakeville that rent
their housing is anticipated to remain relatively stable over the next 20 years.
Housing Recommendations
The overall projected need for var-
ious housing products to satisfy
demand from current and future
residents in Lakeville through 2030
is presented in the table on Page 6.
Specific recommendations to ad-
dress the affordable housing needs
of low- and moderate -income
households in Lakeville (as pre-
sented in the table) over the short-
term are summarized below.
For -Sale Housing Recommendations
Projected Housing Demand In Lakeville by Decade
2010-2020 a 2020-2030
5,000
4,5W
4,000
3,500
3,000
2,5 --
2,000
1,500
1,000
500 _
a
i" NA ace o`F �e q�e
01$ c� a0 Stii ca0
c+`a1
The Recession caused some price deflation for single-family new construction, but a greater
level of price deflation occurred among existing homes. The new construction market will con-
tinue to develop homes beginning at $300K and above. Although there is demand for homes
MAXFIELD RESEARCH INC. 4
priced less than $300K, existing homes are expected to satisfy most of the demand from mod-
erate -income buyers. For -sale multifamily could also satisfy a portion of this demand.
Housing Rehab Recommendations
In general, most of Lakeville's housing stock is relatively new. Where there are pockets of older
housing, housing rehabilitation will become important to maintain the quality of older homes
moving through the next two decades. The Dakota CDA can be instrumental in assisting the
City of Lakeville's current and future residents that may need assistance with loans to improve
the quality of their properties. Encouraging the use of housing rehabilitation and housing
weatherization programs should continue to be a priority for the city.
Subsidized/Affordable Rental Housing Recommendations
There is demand in Lakeville for rental housing that is affordable to low- and moderate -income
households and new properties located in Lakeville are full. Identifying appropriate high-
density sites may be challenging as these sites will also be in competition from private develop-
ers. Over the short-term however, there is likely to be slightly less demand for market rate
multifamily which would enable the CDA to take advantage of a slower multifamily market to
identify and purchase sites for future development. Mixed income buildings can also help to
increase the amount of affordable housing in the community while also producing market rate
housing.
We recommend the development of one workforce townhome development in Lakeville by
2020 and a second development by 2030. These properties, in addition to other mixed -income
properties (80% market/20% affordable) should be promoted in areas where residents would
have convenient access to shopping, services, and transit. Preserving the quality of the existing
stock of older apartments in the community is also important as it provides affordable rental
housing to low/moderate income households long-term. Lakeville could also encourage the
use of rental rehabilitation programs for older rental housing units.
Although Lakeville Woods was developed in the late 2000s, there remains demand for addi-
tional market rate rental housing in the community. Encouraging additional development of
new multifamily rentals will support ongoing household growth in Lakeville.
Affordable Senior Rental Housing Recommendations
The Dakota County CDA's senior housing program has been very successful in providing afford-
able housing to lower- and moderate -income seniors. Lakeville has three affordable senior
properties (Main Street Manor, Winsor Plaza and Crossroads Commons). All are full with wait-
ing lists. We recommend the development of one affordable senior property in Lakeville by
2020 and another by 2030.
MAXFIELD RESEARCH INC. 5
Special Needs Recommendations
A portion of Dakota County's population has physical or cognitive limitations and/or has experi-
enced challenges in securing and maintaining private housing. Based on our research, several
groups were identified as needing specialized housing options in Dakota County through this
decade and into the next, including housing for the homeless, housing for youth who do not
qualify to reside at the existing Lincoln Place, transitional and supportive housing for teenage
single women with children, permanent supportive housing for those with physical and/or cog-
nitive limitations. These developments may be added throughout the County. However, we
recommend that Lakeville consider a location near transit opportunities to locate a property
that would be affordable and offer a strong connection to transit and services for those with
special needs.
MAXFIELD RESEARCH INC. 6
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