Housing - Rental Survey AnnualCITY OF DUBUQUE, IOWA
MEMORANDUM
January 31, 2001
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Annual Rental Survey
Housing Services Manager David Harris is transmitting the fifth edition of the armual "River
Town Rents" survey as conducted through the Housing Trust Fund Committee.
Michael C Van Mdhgen x
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
David Harris, Housing Services Manager
CITY OF DUBUQUE, IOWA
MEMORANDUM
18 January 01
To: ~ VanMilllgen, City Manager
From: Housing Trust Fund Committee
~ David Harris, Housing Services Department
Re: Annual Rental Survey
The Housing Tm~t Fund Committee has received the fifth edition of the annual "River Town
Rents" survey of the Dubuque rental housing market. This survey is performed under the
direction of Len Decker at the Loras College Center for Business and Social Researek The City
Council authorizes use of Comm~mily Development Block Grant funds for payment of costs. The
survey is annually provided by the Housing Department to area landlords, lenders, realtors and
others with interest in the residential rental market, as a public information service.
The survey measures current rents and occupancy rates of residential properties, city-wide. A
methodology developed by Dr Decker samples these factors individually for four geographic
sectors of the city; further, within these sectors each of three types of rental housing is sampled.
These include single family rentals, duplexes and multi-unit apartment buildings.
This year's survey, the fitth in a series originating in 1996, indicates a general improvement in the
rental housing m~rket. City-wide rents increased, from 1999, for efficiencies, two- and three-
bedroom apartments and single-family homes, from 3-10%. Duplexes experienced no change,
while one-bedroom units declined by 14%.
The news was even more positive for occupancy levels. The city-wide occupancy rate increased
to 91% - for all types of units - a significant (4%) improvement from last year. Every type of unit,
excepting efficiencies and duplexes, experienced rate increases, from 1-5%. Efficiency units increased
occupancies by 19%. Duplex rents declined by 1%.
In the downtown sector, which in past years had evidenced highest vacancy rates, significant
improvements in occupancies were observed. Rates were up for all types of units, by 1-5%,
excepting thrce-bedmom apartments, which decreased by 2%, and efficiencies, which
improved by 14%. Downtown occupancy levels, excepting efficiency units, are now at 88-93%.
The narrative written by Dr Decker this year makes note of an additional factor in discussion of
vacancy rotes. For purposes of construction of the survey sample, approximately 1500 rental
units are excluded from the city-wide total of about 7500 rentals. This is done in order to factor
out all Section 8, other HUD-subsidized and college-owned units, so as to assess only those
rentals operating under actual "market" conditions. In past years, in discussion of city-wide
occupancy rates, we have calculated a rote then based only on the sample of market units. This
has had the effect of under-stating the tree city-wide occupancy rate.
In this year's summary, Decker has calculated an actual city-wide occupancy rote, by first
conducting the survey of market units and then re-combining that number with the 1500 "non-
market" rentals. This "extrapolated" occupancy rate has been calculated at 93%, indicating a
relatively healthy remal housing market for the city.
The survey and Housing Department-issued synopsis is attached for your review and for
distribution to City Council members.
RIVER TOWN RENTS V
2000 SURVEY SYNOPSIS
ANALYSIS AND CONCLUSIONS
City-wide median rent for single family dwellings was $498/month; for
duplexes, this rent was $377/month. In multiple-unit buildings, median
rents were as follows:
Efficiency $300
1-bedroom $300
2-bedroom $430
3-bedroom $500
Median rents, for survey purposes, did not include any utilities costs.
Due to the small number of 4-bedreom units in the sample, no information is
provided in this analysis.
By geographic area, single family rents were highest ($595/month) in the
West end. North end rents were lowest, at $450.
Duplex rents were highest ($443) in the South end; North end rents were lowest,
at $350.
In multiple-unit buildings, rent variations observed similar patterns.
Highest median rents for 1-bedroom units, at $400/month, were in the West
end; lowest were North end at $260.
Highest rents for 2-bedroom units were in the West, at $500. Lowest were
Downtown, at $350.
Adequate sample size for 3-bedroom units was obtained only in the Downtown;
this rent was $425.
Efficiency units were also sampled. Rents for these ranged from $300/month
in the West end to $200 Downtown and in the North end.
The City-wide occupancy rate for single family dwellings was 93%; for
duplexes, the rate was 89%. In multiple-unit buildings, the rates were as
follows:
Efficiency 83%
1-bedroom 92%
2-bedroom 91%
3-bedroom 96%
The City-wide occupancy rate for all rental units was 91%.
By geographic area, occupancy rates were highest for single family
dwellings in the South end (100%). Downtown single-family occupancy was
lowest at 90%.
Duplex occupancies were highest in the West (99%) and lowest
Downtown and in the North end (88%).
In multiple-unit buildings, South end 1-bedroom units had highest occupancy
levels, at 100%. Lowest were Downtown, at 88%.
In a reversal of previous year survey findings, 2-bedroom occupancies were
highest in the North end and Downtown, at 93%. Lowest were in the West, at
88%.
For 3-bedroom units, valid sample sizes were obtained only for the West and
Downtown. For these units, occupancy levels were 98% and 86%, respectively.
For efficiency units, the overall occupancy rate rebounded this year, to 83% (from
64% in 1999). Highest rates (at 100%) were in the North end; lowest were
Downtown at 81%.
Comparisons: 1999 and 2000 survey results*
Rents
The 2000 survey shows again this year rents have in most all cases seen
increases, City-wide. Single-family rentals increased 10%; duplexes saw no
change. In multiple-unit buildings, rents in two- and three-bedroom units rose by
5% and by 3.5% in efficiencies. In one-bedroom units, rents actually decreased,
by 14%, from the 1999 median.
Interestingly, the $50 decrease in one-bed units exactly matched the $50
increase recorded last year. In each case, this was a 14% swing. This suggests
that a longer-term analysis is needed in order to correctly identify actual trends.
These comparisons are summarized as follows:
Unit type 99 rent O0 rent
single-family $453 $498
duplex 375 377
multi-unit
1-bedroom 350 300
2-bedroom 410 430
3-bedroom 475 500
Efficiency 290 300
$ chan~e %chanqe
45 10
2 0
(50) (14)
2O 5
25 5
10 3.5
* A comparison of survey results from years 1996-2000 is fully detailed in
the published report, for both rents and occupancy levels.
Comparison of 1999-00 rent changes - by the four sectors of the City - shows an
inconsistent pattern of rent fluctuations. On the West side, rents increased by
$25-50, except in one-bed multiples, (no change) and efficiencies (a $7
increase). Rents over-all saw significant increases in the West sector.
In the South end, single family rentals increased significantly ($62), while
duplexes declined by $7. However for two-bedroom apartments in multiple unit
buildings, sampled rents showed a $274 decrease. This suggests that last year's
survey (incorporating new high-end rentals), may have over-stated the market, at
$762. ^ significantly larger sample of 2-bedroom units was obtained this year.
This broader data base may be providing a more accurate analysis of real market
dynamics. One-bedroom apartments also declined, by $96.
North end rentals indicated little change from last year. Single family increased
by $25; duplexes saw no change. One bedrooms in multiple unit buildings
decreased by $25; no change was seen in 2-bed units.
The downtown market was also relatively fiat. One-bedroom apartments,
efficiencies and single-family rentals increased by $5-$15; two-bed units and
duplexes experienced no change. Three-bedroom units declined by $50.
(A complete comparison of rents, by region and unit type, is listed in the "Survey
Findings" section of this synopsis.)
Vacancy Rates
The good news is that this year's survey shows a pattern of increased
occupancies, throughout the city. The over-all increase in the occupancy rate,
from 1999, was from 87-91%, a significant improvement. Single-family rentals
increased by 2%; duplexes declined by 1%. In multi-unit buildings, 1-bedroom
rates increased 5%, 2 bedroom units by a percentage point, and 3-bedrooms
increased 3%.
Efficiency units, while rebounding from 84% in 1999 to 83% this year, still
experienced lowest demand from renters. This would seem to follow the trend of
an increasing market for larger units, with more amenities, than many of the older
efficiencies typically offer.
Unit type
single-family
duplex
multi-unit
1-bedroom 87
2-bedroom 90
3-bedroom 93
Efficiency 64
City-wide: 87
99 0_.~0
occupancy occupancy % change
91% 93% 2
90 89 (1)
92 5
91 1
96 3
83 19
91 4
A comparison by geographic areas of the City reveals a fairly consistent pattern
of an increase in occupancy rates. In the West, occupancies ranged from 88-
99% (excepting efficiency units), reflecting fairly stable levels. Two-bedroom
apartment occupancies did decline by 4%; efficiencies increased by 20% to an
82% rate this year.
In the South end, rates ranged from 92-100%. Duplex occupancies declined by
5%; single-family rentals increased 29%.
North end rates ranged from 88-98%, with a 5% decline in duplexes and 6-11%
increases in all other occupancy rates.
The Downtown area showed a consistent trend toward increased occupancies.
Single-families increased by 2%; duplexes and 2-bedroom apartments increased
by 5%. One-bedroom apartments increased by 3%, while efficiencies increased
by 14%, to an 81% occupancy level this year. Only 3-bedroom apartments
showed a rate decline, by 2%. Excepting efficiencies, rates ranged from 88-93%.
(A complete comparison of vacancy rates, by region and type of unit, is listed in
the "Survey Findings" section of this synopsis).
SURVEY FINDINGS
Rents*
Median rents - the rent at the mid-point of the distribution of all rents surveyed
(for each unit type) - were determined, City-wide, as follows:
single family $498/month
duplex 377
multiple:
Efficiency 300
1-bedroom 300
2-bedroom 430
3-bedroom 500
*rent figures given exclude all utilities
By geographic area, median rents were as follows:
S n,cl e famil, Du )lex: Multiple:
2BR 3BR 1BR 2BR 3BR EFF 1BR 2BR 3BR
Downtown 400 $508 Downtown $300 $375 $475 Downtown $200 $300 $350 $425
North 400 475 North 300 350 463 North 200 260 400 *
West 585 598 West 283 448 500 West 300 400 500 *
South * . South * . . South * . 488 *
City-Wide 475 525 City-Wide 300 375 470 City-Wide 300 300 430 500
*where noted, no median rent figures are listed, due to small sample sizes
OCCUPANCY RATES
Occupancy rates, City-wide, were determined as follows:
single family 93%
duplex 89%
multiple:
Efficiency 83%
1-bedroom 92%
2-bedroom 91%
3-bedroom 96%
City-wide 91%
By geographic area, occupancy rates were as follows:
EFF
~51n,qle Tamlr f: uuplex: IVlUILI[JIC. I-MU /--UU ,.~-UU [-rr
Downtown 90% Downtown 88% Downtown 88% 93% 86% ' 81%
North 98% North 88% North 98% 93% * 100%
West 96% West 99% West 95% 88% 98% 82%
South 100 South 95% South * 92% *
City-Wide 93% City-Wide 89% City-Wide 92% 91% 96% 83%
*where noted, no occupancy rotes are listed, due to small sample sizes
Synopsis prepared by:
David Harris
Housing Services Department
January 01
DH~s