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Demographics & Housing Market Conditions

Percent of Renter Households source: acs 2018 1M
Housing Stock

BLOCK GROUPS WITH HIGHER PERCENTAGES OF
RENTERS ALSO HAVE LOWER MEDIAN INCOMES.

Block groups in Nashua where renter households comprise 75%
or more of all households have an average median income of
$31,400 which is less than half the City’s median of $73,000.
Several block groups have median incomes of just over $20,000
which is below the federal poverty line of $26,200.

% Renter Households
0% - 23%
. . . . . oa 24% - 49%
As housing prices, including rent rates, continue to climb in
Nashua; many renter households in these block groups will have
a more difficult time finding housing that is affordable and
attainable. These block groups also have some of the higher
concentrations of residents of color in Nashua.

D 50% - 74%

GD 75% - 95%

we

Households earning between $20,000 and $34,000 a year can
afford rent prices in the range of $500-$875 a month. With a
median rent of $1,287, much of Nashua’s housing stock is out of
reach for these households without a significant boost in income
or subsidy for the unit.

Nashua Housing Study - 19

Demographics & Housing Market Conditions

Vacancy

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HOUSING VACANCY IN NASHUA IS EXTREMLY LOW. Vacant Housing Units by Category 2013 & 2018

In 2018, 3.1% of Nashua’s housing stock was Source: ACS 2013, 2018
classified as vacant. This was down from 4.2%
five years ago. Nashua’s vacancy rate (number
of units actively listed for rent or sale) was 1.1% 1,075
in 2018. A healthy vacancy rate for a community

is typically between 3% and 5%. 1,000

1,200

The inventory of vacant units that are for sale or
for rent is very low. In 2018, there were only 138
units listed as vacant for sale and 300 vacant
for rent. This is out of a total housing stock of
38,000 units. As population and employment
continue to increase in Nashua, the pressure on
the housing market will continue to grow and
likely keep vacancy levels low unless more
product is introduced. A400

800 757

733

600

Units

476
439

Approximately 45% of all vacant units are
classified as “vacant other” which refers to
units that are not available for rent or sale and
are off the market for different reasons. These
include undergoing substantial rehab,
uninhabitable units, foreclosure, among others. 0
Having 45% of vacant units classified as other Vacant Available Vacant Unavailable Vacant Other
vacant is not uncommon.

200

m2013 =2018

Nashua Housing Study - 20

Demographics & Housing Market Conditions

Home Values & Sales “
Ownership Units by Structure Type
Source: ACS 2018
90%
Ownership Units by Age of Structure m % of Units
Source: ACS 2018 80% 77%
. fe) 70%
Age Units % of Total
. ° 60%
Built 2000 or later 1,893 10%
Built Between 1980 and 1999 6,189 31% 50%
Built Between 1960 and 1979 7,108 36% 20%
Built 1959 or earlier 4,553 23%
30%
MOST OWNERSHIP UNITS WERE CONSTRUCTED BETWEEN 1960 AND 1999. 20%
In Nashua, 67% of all owner-occupied units were constructed
between 1960 and 1999. Nearly three-quarters of all owner- 10% 7%
occupied units are less than 60 years old. By New England 4% 2% 1% A% 19 A%
standards, Nashua’s housing stock is relatively new. One of the 0% |_| im = __ im __ mm
challenges is to address the housing constructed early, which 1-Unit 1-Unit 2-Unit | 39Units 10-19Units 20-49 Units 50orMore Mobile
tends to be concentrated in and around Downtown Nashua. One Detached Attached Units | Home Units
advantage in Nashua is that a focused effort on housing rehab
within neighborhoods with older housing could help preserve that
housing stock longer term, particularly where that housing stock OWNERSHIP UNITS ARE CONCENTRATED IN SMALLER STRUCTURES.
is supporting naturally occurring affordable units. Not surprisingly, a large majority (84%) of owner-occupied units are found in single unit

structures whether attached or detached. Taking both one- and two-unit structures
together that numbers jumps to 88% of all ownership units. Very few units are in structures
larger than ten units, which might indicate a larger condominium development. Nashua has
approximately 767 owner-occupied mobile home units, although that number has been
shrinking over time. This is another housing option that can provide an affordable housing
option for small households.

Nashua Housing Study - 21

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

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Demographics & Housing Market Conditions

Home Values & Sales

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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

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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.

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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

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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
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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

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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.