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5.15 5.4.2 Rental Market The metro area is in the middle of an apartment building boom (20,000 units are in various stages of development; though not all will get built). However, much of the proposed development is focused on downtown Minneapolis and several downtown adjacent neighborhoods, such as Uptown and the University of Minnesota. To some degree, new apartment development is beginning to appear in first ring suburbs, but it is highly concentrated near heavily built up areas with substantial transportation access and nearby shops. Examples include the Southdale area of Edina, the Southtown area of Bloomington, and downtown Hopkins. There currently are no newer market rate apartment buildings in Mounds View. The closest new rental development is the View at Long Lake in New Brighton, developed by Stuart Co. One- bedroom units are 900 square feet and being leased for $1,330-$1,455 per month ($1.48-$1.62 per sf). Two-bedroom units are 1,250 square feet and being leased for $1,615-$1,655 per month ($1.29-$1.32 per sf). Although this property indicates the potential for new suburban apartment development, it is important to note that the location of this property is adjacent to a lake and park with trails and therefore is able to command higher rents than other nearby sites that lack this same level of amenity. According to Marquette Advisors, older existing apartments in Mounds View/Spring Lake Park are averaging $717 per month for a one-bedroom unit and $851 for a two-bedroom unit with very low vacancy (2.0%). These rents are about 10% below comparable older properties throughout the metro area. Market demand is clearly there for new apartment units in Mounds View. However, feasible market rate rents are probably not able to support new development at Crossroad Pointe given modest incomes in the neighborhoods surrounding the site, the smaller size of the site (i.e., smaller projects can’t support marketable project amenities – fitness center, pool, party room, etc.), and limited neighborhood amenity (i.e., not near open space, adjacent to highway, etc.). 5.4.3 For-Sale Market Although the ownership market is starting to rebound, home prices in Mounds View are still 25% off of peak pricing in 2006-2007. Therefore, many local buyers (who would be the primary market for this) still do not have the confidence in the market or the equity in their existing single-family home to commit to a condo, co-op, or even a townhome. As a result, the for-sale still needs to improve before most product types could be viable. $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 $220,000 $240,000 2001200220032004200520062007200820092010201120122013Median Sales PriceMetro Mounds View Source: Minneapolis Area Association of Realtors Figure 17: Home Pricing Trends