This was a question asked of me:
I am very concerned about overdevelopment in Ankeny....for example, several years ago it seemed like everyone was building townhomes, now the market seems overstocked....how can we have sensible development in Ankeny?
I am still doing some research on this but here is what I know right now. We can look at the future trends and discuss the trends (both nationally and locally) bringing those expectations back to the vision the council and citizens have for the future of Ankeny. I have not visited the P & Z meetings but understand that they do look at trends and in the Ankeny Comprehensive Plan it is also addressed.
There are several multi-family complexes being built within the city and/or are in some state of proposal right now. To your question: why and will that not lead to an over abundance of multi-family housing also?
In reviewing the building reports on the city website, Ankeny continues to grow. While the numbers of new housing starts is down from the 2000-2005 building peak, there were 355 new single family homes and 226 multi-family dwellings permitted in 2011. It is anticipated that those numbers will increase in 2012.
From 2000 to 2005, when both condo and real estate values were much higher, families were opting for the sometimes less expensive townhome/condo which in many cases was priced just under single family dwellings to “share the American dream” of owning a home.
Times change, in a short 7 years, construction costs are up and lending is tight. While homeownership continues to have appeal with low interest rates, the criteria to borrow that money has changed.
Construction of multi-family units is growing faster than construction of single-family homes—a trend confirmed by the Census Bureau’s monthly report on residential construction.
One reason for the boom in multi-family construction is that rents have risen, making new rental projects more attractive to investors. Obviously rents can’t get too high or people will be turned off. In fact, a recent Bloomberg News Chart of the Day said that the financial advantage of owning over renting is the biggest in at least two decades.
On the other hand, it’s hard to qualify for a mortgage. Plus, multi-family units tend to be smaller and cheaper than single-family homes, which is an asset for people who are scaling back. They also tend to be rented, rather than owned. The six-year-long crash in home prices has taken the bloom off the “ownership society”. Renting doesn’t look as foolish as it did in the days when house prices were rising 10 percent a year or more.
True, multi-family units aren’t all rentals; some are condominiums. Conversely, not all single-family homes are owner-occupied; some are rented out. But those are the exceptions. America’s trend toward rental living is confirmed by U.S. Census Bureau data showing that in the fourth quarter of 2011, the home ownership rate was 66 percent—down from a peak of about 69 percent in 2004-06.
This report showed a 60 percent increase over the past year, through February, in construction permits for units in structures with five or more living units. That compares to a still-healthy 24 percent increase in construction permits for single-family homes. Two-thirds of permits issued were for single-family homes.
In reviewing that documentation from the Census Bureau, we could assume that Ankeny is a mirror of national trends.
On the other side, sales of townhomes/condos have changed also. With the single family market tightening, it's not unusual for the condo market to follow, and that's what we see here. Big drop in actives, large rise in sales, and falling market time of “solds” all indicate a better market for sellers.
The number of households that live in an area can increase through household formation or migration. Household formation is driven by three major forces:- Demographics- Social factors, such as divorce rates, student populations, and - Economic factors such as the state of the economy, wages, etc.
I think it is important to recognize that with 45,000+ people now living in the city, we have and will continue to face changing demographics and economic factors.
Ankeny is positioned well to address that and I look forward to working with folks like yourself as we face the future with a vision.
We also have many great real estate agents in town that are a wealth of information and I look forward to working with them and the home builders in the future. I would ask for your vote on August 14th.
Guy Fawkes
2:06 pm on Thursday, August 2, 2012
Did you get all this from your meeting with Assistant City Manager Tim Moerman yesterday?
Jack F
9:00 am on Friday, August 3, 2012
Johnny- Who cares. At least she is doing the research and getting up to speed. Our other politicians in town just do what their cronies tell them to do so they can hire their buddies and give bids out to their "friend's" business partners. These politicians in Ankeny run like Chicago. I am surprised the school board and king have not "SOLD OUT" preferred seats to football games yet. Or just given Joe another one. At least we can read what this new politician believes and then can hold her accountable. I am still not sure on the other one if I was reading her statements or the "puppet master".
Joe Dygas
8:12 am on Friday, August 3, 2012
With continued growth in real estate and population, I would think property tax revenue would also increase to the city. With an ever increasing stream of tax revenue coming into the city , do you see any reason why property tax rates should not be reduced?
Kurt B.
9:20 am on Friday, August 3, 2012
I commend Mona for putting these topics out for us to review and comment. Now.... my 2 cents worth :this is 1 of those issues that depends on what stage in life you are in, or what is your occupation. If you're a builder, seems like there is no end to the construction. Just tear out another corn field and put in some more houses. Then, move a little further out and do it all over again. On the other hand, if you are a seller , different scenario. From what I have seen is houses being sold for less than expected due to competition with new construction. It has improved a little lately, but still, I think anyone selling a house right now will not get what the tax assessor says your place is worth. The other side of the coin is ..... with all this growth we have ( happening all over the country ), we are taking out very good farm ground and converting it to housing. That means fewer acres for the 3 things we use farmland for : food/fuel/fiber. If you project this trend into the future, you can see we are headed for a real bad situation. But, to answer Mona's original query - in my opinion - yes, we have too much development going on here, but I yearn for the Ankeny that used to be, but is gone forever. Lastly, to support what Joe was saying .... with all of this new development ( and much of it is on the higher end of the market, b.t.w. ), where is all the tax revenue going that the higher population is generating ? We are due for a substantial reduction in prop. taxes, I'd say.
Mona Bond
5:41 pm on Friday, August 3, 2012
I will be at the City Council meeting on Monday night and would encourage you to do the same.
Mona Bond
6:44 pm on Friday, August 3, 2012
On the Agenda: Special Presentation: “70 Cent” Committee Update
Kurt B.
7:15 am on Sunday, August 5, 2012
The "70-cent" committee is a tax increase, right ? Haven't most of the blogs been saying we need a tax decrease ? Be sure to make the 70-cent a decrease and that will be a step in the right direction. Rule # 1 : spend less than what you take in. Rule # 2 - repeat rule # 1 over and over and over.
Shamus O'Toole
6:46 pm on Friday, August 3, 2012
Johnny, I think you are wrong. Everything here looks like it was written by the City Public Relation Department!
Jo Ann
6:36 am on Saturday, August 4, 2012
I totally agree with Kurt. It makes me sick to see our precious farmland turned into concrete. With all the building going on one would think our property taxes would be reduced. City and school need to manage their spending. Way out of control!
Charlotte G.
12:51 am on Sunday, August 5, 2012
The answer to your question is obvious, and you knew that in posing this question. I agree with your focus in housing over-development now, and in not singling out single-family units over-building-not good to rile those builders. Now we have to focus on bigger nos., especially those of multi-family complexes. I was surprised to see another large unit being built, while taking a detour due to road construction.
Charlotte G.
12:59 am on Sunday, August 5, 2012
But, it seems to me that this city has always had a hard time accommodating those who did not choose to buy big in moving here, housing-wise. Hard to see this city now, with new and old multi-family units unoccupied, not to mention the townhomes and condos in the same situation, but better off $$-wise, maybe?
Charlotte G.
1:03 am on Sunday, August 5, 2012
Problem is, Ankeny never could envision this in their growth, this over-development now. Never did these early leaders want to see what we see now. So obvious. For those who moved here, then and now, and chose another housing option. Second-class. But, I agree with you this over-building should stop.
Kurt B.
7:10 am on Sunday, August 5, 2012
Lots of good comments from Charlotte G.
This is quite interesting. About 10 years ago, at the Summerfest, the city had an opinion poll going on in their tent and I stopped and gave them my opinion - which was that the growth is getting out of control and should be curtailed. Doesn't look like my opinion swayed anyone's thinking. If the same poll were to be done today, my response would be exactly the same. At what point do we say ..... we are large enough. ? We are beyond that already.
Charlotte G.
1:32 am on Sunday, August 5, 2012
Over-building housing-wise here goes along with that commercially. Can both be corralled spec-wise? With all the empty storefronts waiting to be occupied, too? Please let us get a stoppage-point to these, too. My final straw was seeing a former small town staple, business-wise, being turned into that bigger city staple-strip mall. But, so hard to see our BOWLING ALLEY being turned into such-a strip mall, after wondering for mos. what would be located there.. If we, in our growth, cannot support a bowling alley, well, we see the true picture. Another old-time asset gone.
Charlotte G.
1:57 am on Sunday, August 5, 2012
Oh, but who really cares here anymore about the loss of, what? A bowling alley? So laughable? We are all too jaded to feel this loss, if we have been here for awhile. Those new here, well, you will be surprised to hear we do not have a bolwing alley here, maybe? Sorry to veer off of Mona's question, but it is all tied together, housing and otherwise...
Nick Berry
8:06 pm on Sunday, August 5, 2012
We are one of the families stuck with the consequences of the over-building of multi-family housing in Ankeny. Our Condo community is actually over 50% rentals so it now could actually qualify as an apartment complex. Condos and Townhouses are a dime a dozen for sale in Ankeny. For me it's a simple choice sell our condo, and move to Altoona where we can buy the same house for less money than we could in Ankeny, and pay less in property taxes. While I love parts of Ankeny, seeing how the city council just does whatever it wants without the consent and advice of the citizens, and the way the school board handles business I can't imagine property taxes here ever being reduced.
As far as the Bowling Alley being gone, I was rather surprised to see no one raise a stink about it closing, but we had register articles about saving Bears' after the owner fell into foreclosure. But an actual historic business closed doors and no facebook groups popped up... Ankeny it's losing it's small town feel, and turning into suburbia, and has been down this road for a few years now.
Kurt B.
8:03 am on Monday, August 6, 2012
Excellent write up by Nick. Our family is in same situation - and for the same reasons.
I hope the city officials are reading , and heeding , these blogs.