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Demographics & Housing Market Conditions

Home Values & Sales

HOUSES PRICED GREATER THAN $250K COMPRISE THE GREATEST SHARE OF HOME
SALES IN NASHUA.

Approximately 75% of Nashua’s owner-occupied housing stock is valued at or
above $200,000, which aligns with stakeholder conversations with real estate
professionals and developers/builders. According to MLS sales data from
2019, 91% of sales occurred in this price range as well.

Home values in Nashua have appreciated by 19% over the last 10 years
indicating a strong demand for owner-occupied housing. The median sales
price of a newly constructed home in Nashua is $407,439 while the median
sales value of an existing home is $321,198.

Nashua Housing Study - 22

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Comparison of Home Values and 2019 Homes Sales
Source: ACS 2018, MLS 2019

=
Under $50,000

$50,000-
$100,000

$100,000 -
$150,000

mw Home Value

$150,000 -
$200,000

Sales Price

$200,000 -
$250,000

Greater than
$250,000

ASSOCIATES INC

Board of Aldermen
February 23, 2016 Page 20

Alderman Siegel

To address Alderman Moriarty’s sense of economics and putting on my CEO hat, by extension one could draft
an army of poodles not subject to the minimum wage and put a poodle on every street corner because it would
be fairly cheap. There’s a reason that you balance the salaries that you pay people with the worth and the
quality of the expected work that you are going to get. Let’s be very careful when we look at the economics
behind hiring and how wages are defined. | have to deal with this every day and | bet my own money on those
decisions.

Alderman Caron

| would like to send condolences to the John Barry family. John was a member of the Parks & Recreation
Department as the operations manager for over ten years and he was a well-respected person.

Alderman Dowd

| would like to give my congratulations to Attorney Bennett for all of his service that he has provided to the city.
| wish you well in everything you do going forward.

The other thing is just a little explanation about the Amherst Street/Charron Avenue; the original estimate that
we had proposed, and I’m sure the Mayor would have addressed it had he been here, when we finally got the
bids last fall they came in significantly higher and we took some actions in the design to get the cost down but
it still came in above the projected amount and this is a project where it’s a public/private partnership and at the
time of the original bid half of the cost was being covered by the people that owned the businesses in the area
and that’s unheard of and they don’t have to do that. This work on Amherst Street and Charron Avenue we
could be doing totally on city dollars. We called the companies in and we already knew they were at the limit
and they agreed to give us an additional $62,000 towards the project and they are stretching their budgets
significantly because they would like to have it done. The additional bonding that is required is the additional
city portion of the funding to make this project fully funded so we can start it as soon as the weather improves.

Alderman Clemons

| would like to take this opportunity to wish Attorney Bennett all of the best. It was always a pleasure to work
with you and you have served the city very well and | thank you for all of your hard work and service. Too
often it goes unnoticed but it hasn’t gone unnoticed by anyone around here.

Alderman Lopez

On March 19" at 11:00 a.m. at Greeley Park there is a community organized walk for heroin awareness.
Anybody who knows someone who has overdosed or passed away or anyone that has been affected by it is
welcome. | was also asked by a constituent to invite the Board of Aldermen.

President McCarthy

| would also like to extend my thanks to Attorney Bennett for his service to the city. It’s been a great pleasure
working with you for more years than | care to remember.

| would also like to extend my condolences to the Barry family. John was good to work with as well and he did
a lot of work for the city.

| have been attending the New Hampshire Science Café for the last year or so which brings in panels on a
highly diverse set of topics. The one last week was on opioid addiction and | found it fascinating enough that |
am trying to arrange the same panel in to talk to the Board at a Human Affairs Committee meeting. The panel
we had last week consisted of a doctor, a first responder from AMR, a former pharmacist who now works for

Demographics & Housing Market Conditions

Home Values & Sales

ASSOCIATES INC

Average Days on Market
Source: MLS 2010-2019

Comparison of Existing Home Sales to New Home Sales
Source: MLS 2010-2019

$450,000 2010 i 35

$400,000 eeeeerrr—(tis‘“(:‘CSCSCS
$350,000 2012 is 42
$300,000

2013) i ;

$250,000 2014 a 3:
$200,000 5015 50
Pe
$150,000
2016 x is
$100,000
2017 i 11
§50,000
$0 2018 10

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

2019 SE 10
mw Existing Single Family New Single Family
0 10 20 30 40 50 60
SALES OF NEW HOMES ARE $100,000 MORE THAN EXISTING HOMES IN NASHUA. AVERAGE DAYS ON MARKET HAVE PLUMMETED SINCE 2010.
RKG defines a new home as one that was built and sold in the same year, and those houses are Since 2011, the average time it takes to sell a home in Nashua
selling at nearly $100,000 more than houses that already existed in Nashua. Interesting, the dropped 81% from a high of 53 days to a low of 10 days in 2019. For
price of a newly constructed home has hovered around $400,000 for the last ten years, while the newly constructed homes that number is even lower taking only 6
price of existing homes in Nashua continues to increase year over year. The demand for single- days to sell. In 2019 there were only 12 newly constructed homes sold
family homes and ownership opportunities in Nashua is driving up the price with average sales in Nashua likely creating the strong demand and extremely low days
prices jumping 19% since 2010. on market average.

Nashua Housing Study - 23

Demographics & Housing Market Conditions

Home Values & Sales

THE NUMBER OF HOMES SELLING FOR OVER $250,000 HAS
MORE THAN TRIPLED SINCE 2010.

Since 2010, the number of sales of homes priced at or
above $250,000 has increased 221% from 208 sales in
2010 to 668 sales in 2019. Homes selling in nearly every
other price range have either decreased or remained the
same. Some of this increase is from new, more
expensive homes being built and entering the market at a
much higher price than existing home sales. More
influential are the existing homes in Nashua that are
increasing in price with natural appreciation as demand
to live in the city has grown. Many homes have either
jumped into the $250,000+ price range naturally or have
undergone renovations and rehabilitation that increased
sales value.

According to MLS data, homes built after 1990 are selling
at nearly twice the amount as homes built between 1900
and 1950. Homes built prior to 1990 sold for an average
of $265,000 while homes built after 1990 sold for an
average of $403,000.

Homes containing three or four bedrooms comprised
96% of home sales in Nashua in 2019. That has remained
consistent since 2010. This is likely due to the
composition of Nashua’s ownership housing market
having far more three- and four-bedroom homes than
those larger or smaller. There were very few one- or two-
bedroom sales in 2019, indicating a relatively small
condo market in the city.

Nashua Housing Study - 24

800

700

600

500

400

300

200

100

ASSOCIATES INC

Number of Sales by Price Range
Source: MLS 2010-2019

668

208

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

$50,000- $100,000
$150,000 - $200,000
——= Greater than $250,000

Under $50,000
eevee $100,000 - $150,000
$200,000 - $250,000

Demographics & Housing Market Conditions

Rents

RENTS ARE RAPIDLY INCREASING IN NASHUA.

Gross rent, which is rent plus utilities, has
increased 19% over the last five years to a high
of $1,287 per month.

2018:
Median Gross Rent

$1,287 per Month

Nashua Housing Study - 25

Change in Gross Rent 2013-2018
Source: ACS 2013 and 2018
50%

45%
40%
35%
30%
25%
20%
15%
10%

5%

Less than $500 $500 - 999 $1,000-$1,499 $1,500 -$1,999 $2,000 or
Greater

0%

m@2013 02018

RENTS IN THE $1,500 - $1,999 RANGE HAVE INCREASED BY 136%.

In Nashua, 63% of rental units fall within a gross rent range of $500 to $1,500 per
month. Over the last five years, rents in the $1,500 to $1,999 range increased by
136% while rents in the $500 to $999 range fell by 18%. It appears from the data
that there has been a transition of rental units into this next price bracket. There
was also a 33% increase in rental units charging greater than $2,000 per month.

ASSOCIATES INC

Demographics & Housing Market Conditions

Rents

Rental Units by Age of Structure

Source: ACS 2018

Age Units

Built 2000 or later 1,508
Built Between 1980 and 1999 4,395
Built Between 1960 and 1979 4,491
Built 1959 or earlier 6,137

% of Total

9%
27%
27%
37%

MOST RENTAL UNITS ARE IN BUILDIGS BUILT 40 YEARS AGO.

In Nashua, 64% of all rental units are housed in buildings constructed
over 40 years ago, with 37% of units housed in buildings constructed
before 1959. While these older buildings can be a key component of
the naturally-occurring affordable rental stock in the city, they may
have some long-term maintenance challenges and potentially interior
and exterior finishes not appealing to today’s renters. As new
amenitized rental housing stock comes on the market, there may be
added pressure placed on these older buildings to raise rents or

redevelop to compete with newer product.

Nashua Housing Study - 26

ASSOCIATES INC

Rental Units by Structure Type

Source: ACS 2018

25%
mg % of Units
20%
15%
10%
5%
0%
1-Unit 2-Unit 3-4 Units 5to9Units 10-19 Units 20-49 Units 50 or More
Units

RENTAL UNITS IN NASHUA ARE SPREAD ACROSS A WIDE RANGE OF STRUCTURES.

Nashua has a good diversity of building typologies housing rental units. The largest number of
units are in buildings with 20 or more units, not surprisingly. The city also has a good spread
of rental units in smaller structures as well with 38% of all rental units in buildings with fewer
than four units. Only 10% of all rental units are in buildings with more than 50 units.

Demographics & Housing Market Conditions
ASSOCIATES INC

Rents
Nashua’s Change in Rent by Unit Type, 2012-2019
RENT FOR ONE-BEDROOM UNITS IS UP OVER 40%. Source: Rent Jungle, 2012-2078
According to data from Rent Jungle, since 2012 rents for one- $1,700

bedroom units in Nashua are up 40%, while two-bedroom units are
up 33%. The average rent for a one-bedroom unit in 2019 was
$1,295 while a two-bedroom unit averaged $1,587. These figures
differ slightly from the 2018 ACS gross rent as these capture only a
subset of active listings each year. $1,500

$1,600

$1,400

$1,300

$1,200
$1,194

$1,100 cecccccvccseesett™y
$1,092

$1,000

$900 $926

$800
eceves AllBedS =—=———=1 Bed
$700

2012 2013 2014 2015 2016 2017 2018 2019

Nashua Housing Study - 27

Demographics & Housing Market Conditions

Rents

Woodlands at Nashua

1 Bed Rent:
$1,140/month
$1.75/sqft

é 650 sqft in size

2 Bed Rent:
$1,195/month
$1.66/sqft

720 sqft in size

Amenities:
Utilities included

| Surface parking

A/C, Internet, Cable
Pool
Laundry Facilities

Woodland at Nashua is located at 3 Sapling Court off Split Brook Road just west of
Route 3 on the south side of the city. Close to major commuting routes and nearby
retail and restaurants along Daniel Webster Highway. The complex was constructed
in 1978 and includes 240 units across several 3-story buildings with individual
outdoor balconies. The complex does have a pool, surface parking for vehicles, and

rent includes utilities.

Inside the unit there is air conditioning, internet and cable access, dishwasher and
disposal, granite countertops, and a microwave. Storage units are available for those

that need additional space.

Nashua Housing Study - 28

1 Bed Rent:
$1,850/month
$2.43/sqft

760 sqft in size

2 Bed Rent:
$2,350/month
$2.29/sqft

1,028 sqft in size

Amenities:
Covered parking
A/C, Internet, Cable,
Clubhouse, Cyber
Lounge, In-Unit
Laundry, Storage
Units

ASSOCIATES INC

RENTAL PROPERTY AND UNITY COMPARISION IN NASHUA

Riverfront Landing

Riverfront Landing is located at 11 Bancroft Street just off the Ferry Street Bridge
along the Merrimack River. This is one of Nashua’s newest apartment complexes
built in 2018 and offering 152 units in a 4-story building. This complex is located a
little over a mile from Downtown Nashua and walkable to all the amenities there. The
complex has a clubhouse, pet play area, dry cleaning service, fitness center, bike
parking, and both surface and covered parking ($70/month).

The interiors of the units include all modern amenities including high speed internet,
cable, in-unit washer and dryer, air conditioning, all modern stainless-steel
appliances, balconies, and storage units available upon request.

Demographics & Housing Market Conditions

Cost Burden

ASSOCIATES INC

Cost Burden 2018 Cost Burdened Owner vs. Renter Households 2016

Source: ACS 2018 Source: CHAS 2016

Owner Households

Cost Burdened

Y R 74% 16% 10%
4 enter
1 oO ao v

H 0 U se h 0 I d S Not Cost Burden 90% -49.9% / Severe Cost

Less than 30% : ,/ Burden: >50%

¢

MANY RENTER HOUSEHOLDS IN NASHUA ARE CONSIDERED COST BURDENED. are aa We

HUD considers a household to be cost burdened if they are spending
more than 30% of their monthly income on housing costs. In Nashua, Renter Households
about 41% of all renter households are cost burdened which is in line with

US averages.

The challenge for households spending more than 30% of their income on RENTERS IN NASHUA ARE MORE LIKELY T0 BE COST BURDENED COMPARED

housing costs is it leaves less money for spending on other necessities TO OWNERS
such as food, transportation, education, healthcare, and childcare. Finding .
ways to build more housing that is affordable to renters is one way of
helping to keep cost burdening down.

According to data from HUD, 41% of renters were spending more than
30% of their income on housing costs compared to only 26% of
homeowners. 18% of those renters were spending more than 50% of the
income compared to only 10% of homeowners.

Nashua Housing Study - 29

Issues and Opportunities

ISSUE & OPPORTUNITY AREA 1
ACCOMMODATING FUTURE GROWTH

RKG

Nashua Housing Study - 30