morris county new residential construction 2003 – 2009

Morris County New Residential Construction 2003 – 2009:

Morris County New Residential Construction 2003 – 2009 Phase 1- Preliminary Findings

Purpose:

MC New Residential Construction 5/19/2011 2 Purpose Examine new housing construction in Morris County: Price Type Size Location Trends and Related Issues

Data Collection:

MC New Residential Construction 5/19/2011 3 Data Collection DCA Warranty Data (2003-2009) Data indicates sales price as reflected in warranty, not reported value. Units identifiable by housing type and general location. Reflects for-sale units (no rental construction). Over 5,000 records included, reviewed for accuracy (location and type) by MCP&D staff. Unit size information provided by the Morris County Tax Board.

Organization:

MC New Residential Construction 5/19/2011 4 Organization Unit Type Classifications: Single Family Detached (SFD) Single Family Attached (townhomes) Duplex 3 or 4 Units 5 or More Units

Construction Trends – All Units:

MC New Residential Construction 5/19/2011 5 Construction Trends – All Units

Trends in New Residential Units by Type:

MC New Residential Construction 5/19/2011 6 Trends in New Residential Units by Type Type of Development 2003 2004 2005 2006 2007 2008 2009 Totals Single Family Detached (SFD) 608 562 600 483 327 226 143 2,949 Single Family Attached (Townhomes) 232 189 191 108 108 119 77 1,024 Duplex 4 0 2 0 0 4 1 11 3 or 4 Units 4 0 6 4 0 2 3 19 5 or More Units 175 105 201 173 131 191 100 1,076 Total 1,023 856 1,000 768 566 542 324 5,079

Sale of New Residential Units Morris County:

MC New Residential Construction 5/19/2011 7 Sale of New Residential Units Morris County Note: For analysis, Single Family Attached includes townhome and duplex unit types . Multi-Family includes 3 or 4 and 5 or more unit types.

Percent of Total New Development by Type by Year :

MC New Residential Construction 5/19/2011 8 Percent of Total New Development by Type by Year Type of Development 2003 2004 2005 2006 2007 2008 2009 Single Family Detached (SFD) 59% 66% 60% 63% 58% 42% 44% Single Family Attached (Townhomes) 23% 22% 19% 14% 19% 22% 24% Duplex 0% 0% 0% 0% 0% 1% 0% 3 or 4 Units 0% 0% 1% 1% 0% 0% 1% 5 or More Units 17% 12% 20% 23% 23% 35% 31% Total 100% 100% 100% 100% 100% 100% 100%

Total New Residential Development by Type 2003-2009:

MC New Residential Construction 5/19/2011 9 Total New Residential Development by Type 2003-2009

New Single Family (SFD) Home Prices – 2009 :

MC New Residential Construction 5/19/2011 10 New Single Family (SFD) Home Prices – 2009 Price Range Categories Median Price Minimum Price Maximum Price Lower-Priced $490,000 $180,000 $627,037 Medium-Priced $820,000 $630,000 $1,000,000 Higher-Priced $1,433,794 $1,030,000 $4,800,000 Note: Each “Price Range Category” contains 1/3 rd of the total number of units reported for the type of unit discussed for the year noted (in this case SFD for 2009). The median of the Medium-Priced Category (in this case $820,000) is the Median of all price categories combined. Minimum and Maximum Price are the highest and lowest reported price in the price category.

New Single Family (SFD) Homes Square Footage Analysis – 2009 :

MC New Residential Construction 5/19/2011 11 New Single Family (SFD) Homes Square Footage Analysis – 2009 Price Range Categories Median SF Minimum SF Maximum SF Median $/SF Lower-Priced 2,444 792 3,476 $200.49 Medium-Priced 3,564 1,658 6,921 $230.08 Higher-Priced 4,803 1,553 12,840 $298.52

New Single Family (SFD) Median Prices (2003 – 2009):

MC New Residential Construction 5/19/2011 12 New Single Family (SFD) Median Prices (2003 – 2009) 2003 2004 2005 2006 2007 2008 2009 Lower-Priced $368,288 $400,000 $459,995 $545,000 $475,000 $462,450 $490,000 33.0% $121,712 Medium-Priced $500,067 $548,900 $644,750 $820,000 $860,000 $825,250 $820,000 64.0% $319,933 Higher-Priced $837,835 $917,991 $1,153,524 $1,378,260 $1,625,000 $1,625,000 $1,433,794 71.1% $595,960 2003-2009 2003-2009 $ Change Price Range Categories % Change

New Single Family (SFD) Median Prices (2003 – 2009):

MC New Residential Construction 5/19/2011 13 New Single Family (SFD) Median Prices (2003 – 2009)

New Townhome/Duplex Prices 2009:

MC New Residential Construction 5/19/2011 14 New Townhome/Duplex Prices 2009 Price Range Categories Median Price Minimum Price Maximum Price Lower-Priced $294,990 $150,000 $329,990 Medium-Priced $364,990 $344,000 $425,000 Higher-Priced $690,938 $470,000 $1,754,278

New Townhome/Duplex Square Footage Analysis – 2009 :

MC New Residential Construction 5/19/2011 15 New Townhome/Duplex Square Footage Analysis – 2009 Price Range Categories Median SF Minimum SF Maximum SF Median $/SF Lower-Priced 1,196 1,020 1,892 $246.65 Medium-Priced 1,450 1,333 2,398 $251.72 Higher-Priced 3,100 2,100 3,846 $222.88

New Townhome/Duplex -Median Prices (2003-2009):

MC New Residential Construction 5/19/2011 16 New Townhome/Duplex -Median Prices (2003-2009) 2003 2004 2005 2006 2007 2008 2009 Lower-Priced $319,900 $376,776 $ 433,550 $372,570 $376,250 $334,202 $294,990 -7.8% -$24,910 Medium-Priced $370,000 $464,155 $616,792 $600,829 $514,317 $374,320 $364,990 -1.4% -$5,010 Higher-Priced $575,853 $615,767 $731,367 $770,598 $796,432 $723,134 $690,938 20.0% $115,085 2003-2009 2003-2009 $ Change Price Range Categories % Change 2003-2009

New Townhome/Duplex – Median Prices (2003-2009) :

MC New Residential Construction 5/19/2011 17 New Townhome/Duplex – Median Prices (2003-2009)

New Multi-family* Prices 2009 (*includes structures with 3 to 4 units and 5+ units) :

MC New Residential Construction 5/19/2011 18 New Multi-family* Prices 2009 (*includes structures with 3 to 4 units and 5+ units) Price Range Categories Median Price Minimum Price Maximum Price Lower-Priced $219,990 $188,950 $250,000 Medium-Priced $292,500 $251,990 $325,500 Higher-Priced $358,925 $330,000 $748,000

New Multi-family Square Footage Analysis – 2009 :

MC New Residential Construction 5/19/2011 19 New Multi-family Square Footage Analysis – 2009 Price Range Categories Median SF Minimum SF Maximum SF Median $/SF Lower-Priced 800 675 1,212 $275.16 Medium-Priced 1,136 757 1,624 $257.48 Higher-Priced 1,925 1,152 2,193 $186.50

New Multi-family - Median Prices (2003 - 2009):

MC New Residential Construction 5/19/2011 20 New Multi-family - Median Prices (2003 - 2009) 2003 2004 2005 2006 2007 2008 2009 Lower-Priced $178,900 $154,900 $259,000 $279,990 $281,640 $299,990 $219,990 23.0% $41,090 Medium- Priced $209,900 $267,400 $329,900 $352,990 $355,000 $349,240 $292,500 39.4% $82,600 Higher-Priced $329,900 $349,990 $390,900 $396,900 $398,990 $783,053 $358,925 8.8% $29,025 2003-2009 2003-2009 $ Change Price Range Categories % Change

New Multi-family - Median Prices (2003 – 2009):

MC New Residential Construction 5/19/2011 21 New Multi-family - Median Prices (2003 – 2009)

Housing Type Comparison (2003-2009) – Median Prices :

MC New Residential Construction 5/19/2011 22 Housing Type Comparison (2003-2009) – Median Prices 2003 2004 2005 2006 2007 2008 2009 Single Family (SFD) $500,067 $548,900 $644,750 $820,000 $860,000 $825,250 $820,000 64.0% $319,993 TH & Dup $370,000 $464,155 $616,792 $600,829 $514,317 $374,320 $364,990 -1.4% -$5,010 Multi-family (3+) $209,900 $267,400 $329,900 $352,990 $355,000 $349,240 $292,500 39.4% $82,600 2003-2009 2003-2009 $ Change Price Range Categories % Change

Housing Type Comparison (2003-2009) – Median Prices:

MC New Residential Construction 5/19/2011 23 Housing Type Comparison (2003-2009) – Median Prices

Preliminary Findings:

MC New Residential Construction 5/19/2011 24 Preliminary Findings Single Family Detached is shrinking as part of overall new construction; Multi-family is growing; the difference in number of units sold between these categories declined significantly in 2008 and 2009. In 2008 and 2009, Single Family Detached made up less than half of all new units sold. Even with the recent downturn, overall Single Family Detached and Multi-family prices remain significantly higher than 2003; overall new townhome prices have returned to their 2003 levels. For Single Family Detached & Townhomes, the percent rise in new housing costs over time has been greatest for the higher priced units, but not for Multi-family, where the medium price category saw the greatest increase.

Future Analysis:

MC New Residential Construction 5/19/2011 25 Future Analysis Expand analysis to review new construction trends by size and general location. Identify major new residential rental construction during study period. Expand study period to include 2010 data when available. Incorporate COAH data and building permit data. Identify associated trends and issues. Examine relationship to population demographics.

Morris County New Residential Construction 2003 – 2009:

Morris County New Residential Construction 2003 – 2009 END Phase 1- Preliminary Findings