Laserfiche WebLink
HOUSING CONSTRAINTS <br />MARKET FACTORS <br />The feasibility of building new housing, including affordable housing, is <br />influenced by a variety of market factors, including the cost of land, construction <br />and rehabilitation costs, and financing issues. The housing market and achievable <br />rents and sales prices for builders also play key roles. This section details market <br />factors and their general impact on housing costs. <br />LAND COSTS <br />Land costs and the cost of assembling parcels are among the largest components <br />of the total cost of building new housing. Since Santa Ana is a 99 percent built - <br />out community, very few vacant parcels remain. Thus, in most cases residential <br />developers must buy the land and any existing structure on it. Land costs also <br />depend on the zoning for the site and the proposed use of the property. The <br />following land prices were obtained from on -line real estate database tools. <br />■ Single - family residential land. The average cost of vacant land ranges from <br />approximately $30 to $50 per square foot, based on Trulia Real Estate search and <br />land value estimated at 75 percent of the sales price (2013). With home sales <br />increasing in the market, the price of residential land for single - family homes is <br />expected to slowly increase throughout the city. <br />Mixed -use residential land. In prior years, the City surveyed properties zoned for <br />mixed uses in the Metro East Overlay Zone and determined that land values <br />range from $20 to $45 per square foot for unimproved land. According to <br />LoopNet Real Estate search (2013), the price per square foot for properties along <br />Harbor Boulevard that are zoned for commercial uses ranges from $35 to $55. <br />Prices for underutilized land along First Street and Grand Street are listed at $50 <br />per square foot. <br />■ Multiple - family residential land. For multiple - family properties within existing <br />residential zones, City appraisals derived an estimate of$30 to $45 per square foot <br />for land in older residential neighborhoods, such as the Transit Zoning District <br />area and other infill locations. The value of residential land in District Centers is <br />included in the estimates for mixed -use opportunities. Prices will vary significantly <br />by location. <br />Changes in the housing market will to continue to affect the achievable rents and <br />sales prices of housing. However, declining land values may have benefits in that <br />they reduce the total development cost of building affordable housing. In effect, <br />the recent housing market downturn has reduced the potential constraint of land <br />costs. <br />J�A <br />B -2 CITY OF SANTA ANA GENERAL PLAN HOUSING ELEMENT <br />