 Housing Market Analysis: Significant Characteristics of the Housing Market: |
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Housing Market Analysis: Significant Characteristics of the Housing Market: |
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6. Vacancy Rates
The alternative to homeownership is renting, and over half of Iowa City residents are renters. The rental market has a cyclical rhythm based on the University calendar. At certain times of the year, such as October when leases have been signed and students have settled into almost all available units, it is nearly impossible to find adequate and affordable housing. The highest rents are for units located within one mile of the campus. Areas further out are somewhat more reasonably priced.
Due to the high demand for housing, the vacancy rates for both rental units and owner-occupied units is very low. Information from the Iowa City Board of Realtors states that 123 days was the average selling time of homes sold in calendar year 1998. This is a slight decrease from 1997 when the average time on the market was 134 days. Tables III.7, III.8, III.8a, III.9, and III.10 show the vacancy rates for different types of units using Census data and locally generated data from surveys.
Table III.7
RENTAL VACANCY RATES OVER TIME
| Unit Size | 1982 | 1984 | 1986 | 1989 | 1993- 1994 |
| Efficiency | 0.7 | 2.2 | 6.2 | 1.7 | 3.8 |
| One Bedroom | 1.3 | 4.0 | 6.6 | 2.1 | 0.4 |
| Two bedrooms | 1.9 | 5.0 | 5.0 | 0.6 | 5.4 |
| Three bedrooms | 2.1 | 3.0 | 3.1 | 0.3 | 0.0 |
| Unit Size | 1995 | 1996 | 1997 | 1998 | 1999 |
| Efficiency/One Bedroom | 0.4 | 2.4 | 1.6 | 1.9 | 0.0 |
| Two bedrooms | 0.7 | 3.0 | 1.7 | 0.5 | 0.6 |
| Three Bedrooms | 0.6 | 1.3 | 0.0 | 2.3 | 2.4 |
SOURCES: IOWA CITY RENTAL HOUSING SURVEY: 1982, 1984, 1986,1989
Carlson, McClure & McWilliams, Inc. Survey: 1993-1994
EAST IOWA COMMERCIAL REAL ESTATE APPRAISERS APARTMENT RENT SURVEY: 1995, 1996, 1997, and 1998
Cook Appraisal Commercial Valuation Research Group Survey: 1999
Note: The surveys used to compile these vacancy rates included Coralville in the samples. The percentage of the samples that are from Coralville are different, however, for each year and are as follows:
1982: not available 1984: 26% 1986: 26% 1989: 16% 1993-1994: 0%
The 1986 Rental Housing Survey showed a vacancy rate of about 5.2 percent. The results of that survey reflected a surge of apartment construction. However, the 1989 rate of about 1.2 percent indicated room in the market for additional rental housing, especially apartments larger than one bedroom. The average vacancy rate in 1989 for two- and three-bedroom apartments, shown in Table III.7, is extremely low at about 0.4 percent. The average vacancy rate for three bedroom apartments even reached zero percent in 1997. As the above tables show, the rental housing market in Iowa City has historically had very low vacancy rates, which tends to result in high rents. In 1997 Maxfield Research Inc. conducted an extensive survey for Iowa City’s MSA. Maxfield found that the overall vacancy rate for rental housing was about 1.9 percent. Table III.8 and III.8a show more completely the results of the Maxfield study.
Table III.8
RENTAL UNIT VACANCY RATES
IOWA CITY URBAN AREA OCT./NOV. 1997
|
Unit Size |
No. of Units |
No. Vacant |
Percent Vacant |
Avg. Rent |
|
Efficiency |
227 |
2 |
0.9% |
$335 |
|
One Bedroom |
752 |
9 |
1.2% |
$410 |
|
Two Bedrooms |
2,201 |
51 |
2.3% |
$535 |
|
Three Bedrooms |
438 |
9 |
2.1% |
$730 |
|
Four Bedrooms |
92 |
1 |
1.1% |
$1,000 |
|
Five Bedrooms |
35 |
0 |
0.0% |
$1,250 |
SOURCE: OCTOBER/NOVEMBER 1997 MAXFIELD INC. RENT SURVEY
Table III.8a
APARTMENT RENT DISTRIBUTION BY UNIT TYPE
IOWA CITY URBAN AREA OCT./NOV. 1997
|
0 Bedrooms |
1 Bedroom |
2 Bedrooms |
3 Bedrooms |
Total |
||||||
|
No. |
Pct. |
No. |
Pct. |
No. |
Pct. |
No. |
Pct. |
No. |
Pct. |
|
|
$245-299 |
4 |
1.8 |
-- |
-- |
-- |
-- |
-- |
-- |
4 |
0.1 |
|
$300-319 |
28 |
12.3 |
-- |
-- |
-- |
-- |
-- |
-- |
28 |
0.6 |
|
$320-339 |
118 |
52.0 |
26 |
2.4 |
-- |
-- |
-- |
-- |
144 |
3.0 |
|
$340-359 |
77 |
33.9 |
110 |
10.3 |
-- |
-- |
-- |
-- |
187 |
3.8 |
|
$360-379 |
-- |
-- |
153 |
14.4 |
-- |
-- |
-- |
-- |
153 |
3.1 |
|
$380-399 |
-- |
-- |
231 |
21.7 |
-- |
-- |
-- |
-- |
231 |
4.7 |
|
$400-419 |
-- |
-- |
251 |
23.5 |
80 |
2.6 |
-- |
-- |
331 |
6.8 |
|
$420-439 |
-- |
-- |
128 |
12.0 |
136 |
4.3 |
-- |
-- |
264 |
5.4 |
|
$440-459 |
-- |
-- |
76 |
7.1 |
179 |
5.7 |
-- |
-- |
255 |
5.2 |
|
$460-479 |
-- |
-- |
33 |
3.1 |
508 |
16.2 |
-- |
-- |
541 |
11.1 |
|
$480-499 |
-- |
-- |
30 |
2.8 |
551 |
17.6 |
-- |
-- |
581 |
11.9 |
|
$500-519 |
-- |
-- |
20 |
1.9 |
287 |
9.2 |
-- |
-- |
307 |
6.3 |
|
$520-539 |
-- |
-- |
8 |
0.8 |
289 |
9.2 |
-- |
-- |
297 |
6.1 |
|
$540-559 |
-- |
-- |
-- |
-- |
205 |
6.5 |
-- |
-- |
205 |
4.2 |
|
$560-579 |
-- |
-- |
-- |
-- |
195 |
6.2 |
-- |
-- |
195 |
4.0 |
|
$580-599 |
-- |
-- |
-- |
-- |
158 |
5.0 |
-- |
-- |
158 |
3.2 |
|
$600-619 |
-- |
-- |
-- |
-- |
202 |
6.4 |
27 |
6.0 |
229 |
4.7 |
|
$620-639 |
-- |
-- |
-- |
-- |
139 |
4.4 |
30 |
6.7 |
169 |
3.5 |
|
$640-659 |
-- |
-- |
-- |
-- |
120 |
3.8 |
36 |
8.0 |
156 |
3.2 |
|
$660-679 |
-- |
-- |
-- |
-- |
-- |
-- |
52 |
11.6 |
52 |
1.1 |
|
$680-699 |
-- |
-- |
-- |
-- |
44 |
1.4 |
24 |
5.3 |
68 |
1.4 |
|
$700-719 |
-- |
-- |
-- |
-- |
-- |
-- |
13 |
2.9 |
13 |
0.3 |
|
$720-739 |
-- |
-- |
-- |
-- |
42 |
1.3 |
-- |
-- |
42 |
0.9 |
|
$740-759 |
-- |
-- |
-- |
-- |
-- |
-- |
32 |
7.1 |
32 |
0.7 |
|
$760-779 |
-- |
-- |
-- |
-- |
-- |
-- |
88 |
19.6 |
88 |
1.8 |
|
$780-799 |
-- |
-- |
-- |
-- |
-- |
-- |
72 |
16.0 |
72 |
1.5 |
|
$800-819 |
-- |
-- |
-- |
-- |
-- |
-- |
36 |
8.0 |
36 |
0.7 |
|
$820-839 |
-- |
-- |
-- |
-- |
-- |
-- |
34 |
7.6 |
34 |
0.7 |
|
$840-859 |
-- |
-- |
-- |
-- |
-- |
-- |
5 |
1.1 |
5 |
0.1 |
|
$860-879 |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
0.0 |
|
$880-899 |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
|
$900-919 |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
|
$920-939 |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
|
$940-950 |
-- |
-- |
-- |
-- |
-- |
-- |
1 |
0.2 |
1 |
<0.1 |
|
Total |
227 |
100.0 |
1,066 |
100.0 |
3,135 |
100.0 |
450 |
100.0 |
4,878 |
100.0 |
Source: Maxfield Research Inc.
NOTE: Highlighting indicates the 1999 Fair Market Rent (FMR) levels set by HUD, from top to bottom, for efficiency, one, two, and three bedroom apartments for 1997.
As table III.8a shows there are 150 efficiency units available for Fair Market Rent (FMR) or less or 66% of all efficiencies. There are 899 one-bedroom units available for FMR or less. This is 84% of all one-bedroom units. Iowa City has 2,155 two-bedroom units available for FMR or less or 69% of all two-bedroom units. Finally, there are 302 three-bedroom units at FMR or less. This is 67% of all three-bedroom units in Iowa City.
Table III.9
VACANCY RATES BY TYPE OF HOUSING
| Unit Type |
Iowa City |
Iowa |
U.S. |
|
Rental Units |
1.7 |
6.4 |
8.5 |
|
Homeowner Units |
0.8 |
1.5 |
2.1 |
SOURCE: 1990 CENSUS OF HOUSING
The tenure and type of housing stock within the community is shown in Table III.10. This information was gathered from the 1990 and 1996 Census. The data show that there has been a moderate increase in the number of owner occupied units constructed between 1990 and 1996. There has been an increase of 979 units or ten percent. The number of rental units has also increased, however, at a slower rate (3.3% or 403 units). This growth rate shows a continuation of a trend in the increase in housing units available; however, the University of Iowa has not provided more housing for its students. The 0.4% increase in dorm beds available is negligible. Despite these overall increases, the vacancy rate for both owner-occupied and rental units remains very low.
Table III.10
TYPE OF OCCUPIED HOUSING UNITS
| Status | 1990 | Percent | 1996 | Percent | Percent Change |
| Owner-occupied | 9,823 | 34.8 | 10,802 | 36.5 | 1.7% |
| Rental units | 12,128 | 43.0 | 12,531 | 42.2 | -0.8% |
| UI dormitory (# beds) | 5,508 | 19.5 | 5,529 | 18.8 | -0.7% |
| UI family apts. | 749 | 2.7 | 749 | 2.5 | -0.2 |
| Total | 28,208 | 100% | 29,611 | 100% | |
SOURCES: RENTAL AND OWNER-OCCUPIED 1990 AND 1996: CENSUS, 1990 AND 1996 UI DORMS AND FAMILY APTS: THE UNIVERSITY OF IOWA
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