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Home Values & Sales

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

According to MLS sales data from 2019, 84% of sales
were for homes priced above $250,000

« 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

* Home values in Nashua have appreciated by 19% over the
last 10 years

¢« Days on market declined 81% since 2011 to an average of
10 days in 2019

SR
Scala

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

Financial Resources of Homebuyers and Renters Home Sale Prices in Nashua, 2010-2019 source: mis 2010-2019 AN,

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

$450,000
$400,000
$350,000 MLS Sale Price Range

$300,000 Less than $200,000

$250,000 $200,001 - $275,000 K a, x Up if ye,
$275,001 - $350,000 eeeN ~~) |}
$200,000 Sw Cl -
GED $350,001 - $500,000 ae. Wane | \_ ae Ape
a: fe ) QE Kes
$150,000 GED wore than $500,000) PR
$100,000 (Ge w vy \
$50,000 i ee.
KZ, Vy C7 f

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

mw Existing Single Family New Single Family

Rents

ASSOCIATES INC

Change in Gross Rent 2013-2018

Source: ACS 2013 and 2018

50%

RENTS ARE RAPIDLY INCREASING 45%
IN NASHUA. 40%

¢ Median Gross Rent increased
19% from 2013-2018

2018:
Median Gross Rent

$1,287 per Month e

25%

35%

20%
15%
10%

5%

0% LJ

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

m@2013 02018

Over the last five years, rents in the $1,500 to $1,999
range increased by 136%

There was also a 33% increase in rental units charging
greater than $2,000 per month

Financial Resources of Homebuyers and Renters

Upper

Moderate

Lower

| |

ASSOCIATES INC

Renting and Purchasing Capacity of Nashua Households, 2018
Source: ACS 2018, RKG Associates

Household
Income

$100,000+

$75,000 - $99,999

$50,000 - $74,999

$35,000 - $49,999

$20,000 - $34,999

$0 - $19,999

Households

% #
34% 12,259
15% 5,431
16% 5816
11% 4,017
12% 4411
12% 4,340

Maximum Affordable

Rent Range

S?,500+

$1,875-$2,500

$1,250-$1,875
—_—_—_———T

$875- $1,875
—_—_=>-

$500- $875

$0 - $500

Home Purchasing
Power

$331,000 +

$249,000 - $331,000

$166,000 - $249,000

$116,000 - $166,000

$66,000 - $116,000

SO - $66,000

Financial Resources of Homebuyers and Renters

ASSOCIATES INC

Housing Affordability for Nashua Households, 2018

Area Median Income Threshold

30% AMI (Extremely Low Income)

50% AMI (Very Low Income)

80% AMI (Low Income)

100% AMI (Moderate Income)
120% AMI (Moderate Income)
Above 120% AMI (Middle Income +)

Source: HUD 2020, ACS 2018, RKG Associates

Income

$30,000

$49,950
$70,650
$99,900
$105,975

$105,976+ 11,473

Households

%

7,289
9,466
4,817
6,422
807

#

20%
15%
13%
18%
2%
32%

Affordable Affordable
Monthly Home Purchase

Rent Price

$750 $99,430
$1,249 $165,551
$1,766 $234,158
$2,498 $331,103
$2,649 $351,237
$2,650+ $351,238+

Financial Resources of Homebuyers and Renters ASSOCIATES NC

Supply and Demand for Affordable Homeownership Units, City of Nashua

Source: HUD 2020, ACS 2018

THERE ARE MORE POTENTIAL BUYERS IN HIGHER INCOME 10,000
BRACKETS THAN THERE ARE HOUSING UNITS THAT MATCH 3.956
9,000
THEIR PRICE POINTS.
For households earning at or below 30% of AMI, 8.000
there are 769 more households than there are .
housing units 6,997
7,000
¢ There is a deficit of 990 units for households above
100% AMI ae 00°
5
¢ This indicates a potential market for new higher 2 5,000 4,661
priced housing that could ease the competition for 2 4,408
moderate income units. * 4,000
3,405
3,000 2.539
2,245
2000 “ter 1,882
1,240
1,000 589 560
, a
30% AMI 50% AMI 80% AMI 100% AMI 120% AMI — Above 120% AMI

mw Owner Households Units Affordable at AMI

Financial Resources of Homebuyers and Renters

THE MARKET FOR AFFORDABLE RENTAL UNITS IS

TIGHT AT THE LOW END OF THE INCOME SPECTURM.

For households at or below 30% of AMI,
there are 2,943 more households than
available affordably priced units

The gap between demand and supply for
households above 100% AMI is 3,168 units

The lack of higher priced rental units in
Nashua puts downward pressure on the
supply of housing priced for lower income
households

7,000

6,000

5,000

4,000

3,000

Housing Units

2,000

1,000

ASSOCIATES INC

Affordable Rental Supply and Demand, City of Nashua

Source: HUD 2020, ACS 2018, RKG Associates

6,276
5,280 5,334
3,221
3,017
2,517
2,337 2278 2,408
218 157
19
=
30% AMI 50% AMI 80% AMI 100% AMI 120% AMI Above 120%
AMI

mg Renter Households Units Affordable at AMI

Financial Resources of Homebuyers and Renters ASSOCIATES NC

Change in Households Earning over $100,000 by Age Cohort 2013-2018

Source: ACS 2013, 2018

OLDER HOUSEHOLDS WITH HIGHER INCOMES ARE 1000
GROWING AS A SHARE OF ALL HOUSEHOLDS IN NASHUA. a8 Households
* Between 2013 and 2018 there were 526 additional

households headed by a person over the age of 65 800

that was also earning over $100,000 a year

* There were 919 additional households headed by a
person between 44 and 64 earning over $100,000 a 600 os

year
437

¢ Between 2013 and 2018 there were 419 additional 400
renter households and 522 owner households
headed by a person age 65 and older

200

-10

-200
Under 25 25-44 45-64 Over 65

Board of Aldermen Page 12
December 13, 2016

MOTION CARRIED

MOTION BY ALDERMAN CLEMONS FOR FINAL PASSAGE OF O-16-019 AS AMENDED
ON THE QUESTION

Alderman Clemons

We had a very good conversation at the Personnel/Administrative Affairs Committee regarding this and a very
good presentation as to the necessity of the rate change. One of the things that came up in public comment
was that some people were surprised by this and | understand that. It came up after a lot of the condo
associations approved their operating budgets. While this is likely still going to go through | am hoping is that
this spring we can have a discussion to see if we can get these increases to be more systematic so folks will
know what to expect in the future without being blind-sided.

Alderman Deane

| don’t think anyone was blind-sided, the prior administration did not bring in the rate increase as was
recommended through the rate study and the expenditures associated with the system. The financial analysis
that was presented to us with our wastewater equipment reserve fund, with capital projects, operations and
maintenance we know full well that we are going to be looking at a 7.5% increase every year now. It’s not like
it was never discussed in a public setting. | think we do need to put a system in place and look at what we
have to do to cover the cost. This is by far the most important facility in the city. There were a myriad of
issues from in the past where our unassigned fund balances drained and we had to make up the difference on
that. Nashua’s rates are still low in that area comparably. Maybe in spring we should get a rate study done
and put an ordinance in and address it right then and there so folks know what the increases are going to be.

Alderman Siegel

| would concur with Alderman Clemons that it is very good. | would urge everyone to please review the
minutes and the presentation that Mr. Griffin gave. It explains very clearly why this isn’t optional.

Alderman Moriarty

It looks like the demand charges are going up by 15% and then there is a flow charge that goes up in two
steps, a 15% sort of retroactively and then it goes up another 15% in the beginning of 2017, is that right?

Alderman Deane

Yes.

MOTION CARRIED

Ordinance O-16-019 declared duly adopted as amended.

O-16-021
Endorsers: Alderman June M. Caron
Alderman-at-Large Lori Wilshire
Alderman Richard A. Dowd
Alderman Ken Siegel
Alderwoman Mary Ann Melizzi-Golja
Alderman Tom Lopez
CHANGING THE NAME OF THE REVIEW AND COMMENT COMMISSION TO THE CITIZENS
ADVISORY COMMISSION FOR COMMUNITY GRANTS
Given its second reading;

(D) Annual Budgets. As soon as available, but in no event more than 90 days after
the beginning of each fiscal year of the Company, an annual budget and forecast of operations and capital
expenditures for the Company for such year, which budget must be in form and content reasonably
acceptable to CoBank.

(E) Notice of Litigation, Material Matters, Ete. Promptly after becoming aware
thereof, notice of (1} the commencement of any action, suit or proceeding before any court,
govemmental instrumentality, arbitrator, mediator or the like which, if adversely decided, could have a
Material Adverse Effect, (2) the commencement of any Enforcement Action; (3) the receipt of any
notice, indictment, pleading, or other communication alleging a condition that may require the Company
to undertake or to contribute to a clean-up or other response under any environmental Law, or which
seeks penalties, damages, injunctive relief, or other relief as 2 result of an alleged violation of any such
Law, or which claims personal injury or property damage as a result of environmental factors or
conditions; and (4) the occurrence of any other event or matter (including the rendering of any order,
judgment, ruling and the like) which could have a Materia! Adverse Effect.

(F) Notice of Default. Promptly after becoming aware thereof, notice of the
occurrence of a Default or an Event of Default.

(G) Notice of Certain Events. At least 60 days prior thereto notice of any change in
the: (1) principal place of business of the Company; or (2) the office where the records concerning the
Company’s accounts are kept.

(H) Other Notices. Such other notices as may be required by any Promissory Note
and Supplement or any other Loan Document.

qd) Other Information. Such other information regarding the condition or
operations, financial or otherwise, of the Company as CoBank may from time to time reasonably request,
including, but not limited to, budgets, interim financial statements, and copies of all pleadings, notices
and communications referred to in Section 5.06(E) hereof.

SECTION 5.07. Conduct of Business. Engage in an efficient and economical manner in the
business conducted by it on the date hereof.

SECTION 5.08. Capital. Acquire equity in CoBank in such amounts and at such times as
CoBank may from time to time require in accordance with its bylaws and capita! plan (as each may be
amended from time to time), except that the maximum amount of equity that the Company may be
required to purchase in connection with a loan may not exceed the maximum amount permitted by
CoBank’s bylaws at the time the Promissory Note and Supplement relating to such loan is entered into or
such loan is renewed or refinanced by CoBank. The rights and obligations of the parties with respect to
such equity and any patronage or other distributions made by CoBank shall be governed by CoBank’s
bylaws and capital plan (as each may be amended from time to time).

SECTION 5.09. Inspection. Permit CoBank or its agents, upon reasonable notice and during
normal business hours or at such other times as the parties may agree, to examine the properties, books
and records of the Company, and to discuss its affairs, finances and accounts with its officers, directors,
and independent certified public accountants.