11-8-01 EXECUTIVE SUMMARY - BEST/BENSON

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FROM FAEGRE•&'ORNSON (THU) 11. 8' 01 14:53/ST. 14:45/NO. 4862015316 P 4 F?OM*BFST & FLANAGAN ;Tru'; 11 8' 01 8 44/ST. 8 4;, :VC. 4863199/83 ? 4 J - EXECUTIVE SUMMARY • In 1990, the Study Area had a total of 14,519 persons and 8,755 households ages 55 and over. The Study Area experienced substantial growth in the older adult base between 1990 and 2000. During this period, the Study Area saw its older adult base grow by 8,217 persons and 4,397 households, growth rates of 57% and 50%,respectively. • Growth in the Study Area's older adult base is forecast to remain fairly constant in the coming years. Between 2000 and 2005, the Study Area is forecast to add 5,861 older adults (+21%) and 3,063 older adult households(+23%)_ Much of the growth will occur in the age 55-64 cohort, due to the baby boomer generation aging into their mid-SOs. While most of the demand for independent senior housing comes from households between the ages of 65 and 80, in recent years,we have seen increasing numbers of households between the ages of 55 to 64 also consider alternative housing. Older Adult Income Distribution and Household Tenure 4E24 • • As of 2000,households age 55 to 64 had a median income of$91,608 versus $46,742 for households age 65 to 79 and 334,241 for households age 80 and older. • In 1990, roughly 80 percent of Study Area older adult households(6.62.5 households)owned their homes. • As seniors age, they may no longer desire, or be able, to maintain their single-family homes. They may prefer to move to housing that offers them greater freedom from maintenance and/or offers them support services. Seniors typically begin to consider moving into rental housing in their early 70s. As of 1990,roughly 88%of households age 55 to 64 owned their housing compared to 82%of households age 65 to 74 and only 60%of older seniors (age 75 and over). Competitive Marker Analysis over-a /I - Se • The ental market in the Cie Study Area has a current vacancy rate of 3.7%. This is a higher vacancy rate than recent times, due in part to less job transfers to the area, a small but moderate number of layoffs, and the desirability for renters to choose locations closer to Downtown Minneapolis, such as Uptown. • Presently, there are four non-subsidized independent senior housing developments with a total of 472 units in the Study Area. Two of the projects,containing 133 units, are located in the City of Plymouth. The remaining two,with 339 units, are located in Minnetonka. • A survey of the • i• • titive develo i ments conducted by our firm revealed only 4 vacant units as •' une 001, a vacancy rate of only 0.8°2)Nearly all buildings surveyed also re- ported they had : bstanhal waiting listsTCurrently, additional 20 units would used to be- come vacant ju t to reach the 5%market equilibrium vacancy rate, /ddYq 1S . _ w MAXFIELD RESEARCH INC. 3