26 Housing Strategy | ENVISION FRANKLIN MULTIFAMILY ASSESSMENT With so many approved units in the pipeline, there appears to be an ample supply of housing forthcoming in Franklin. The situation leads to questions such as: • Do currently entitled projects meet the housing need? • Is there a desired or appropriate percentage of singlefamily residential? • How much more multifamily is appropriate for Franklin? An assessment of local housing production and demographic trends driving demand can help to address these questions. Do currently entitled projects meet the housing need? With 12,748 housing units in the pipeline in 2022, it is understandable to expect these cumulative approvals would deliver a generous supply of completed housing. Yet, even as the total number of approved housing units has grown 75 percent since 2018, the annual count of constructed units has stayed fairly steady, averaging 1,049 units. Prices in the Franklin housing market have remained high, indicating that the pace of construction is not yet matching demand. Franklin homes sales averaged 25 days on the market in June 2023 with a median price $851,873.xiv During this period in the Nashville metro region, the median home price was $478,945 with an average of 41 days on the market. For rentals, Franklin experienced a low 4.3% vacancy rate and high median rent of $2,881 in July 2023.xv By comparison, the Nashville metro area had a 6.5% vacancy rate at the end of second quarter 2023, and a median rent of $1,689.xvi Converting Franklin’s robust pipeline of over 12,700 housing units to constructed units is more complex than it might appear on paper. Various market forces can result in approved units not getting built immediately, or sometimes at all. Current challenges to the homebuilding industry in the U.S. include rising interest rates that make building more expensive for developers, inflationary pressures on materials, and labor shortages. Franklin continues to be a strong market, with 2,200 new residents annually seeking a place to live. Widening the range of housing options available for both new and current residents is an important measure to meet lifestyle and affordability needs. Is there a desired or appropriate percentage of single-family residential? Detached, single-family residential homes have long been a dominant housing type in the United States. Closely associated with homeownership, single-family homes are an important source of wealth-building for many families. Borrowers yield the benefit of mortgage-interest tax deduction—the largest home subsidy in the U.S. Residents of single-family homes typically enjoy privacy and choices for home improvement. When determining a desired mix of housing types for Franklin, a vital question to consider is whether there is an adequate supply of housing that is affordable for people who wish to live in the community. Indicators include median home prices and days on the market for home sales, median rents and vacancy rates for rentals, and comparing median incomes to housing prices. If there is not a sufficient housing supply, the next step is to evaluate what measures can be taken to support the production of housing that meets current and future residents’ needs. To increase homeownership opportunities for a variety of households, planning and zoning can encourage a wider range of units suitable for owner-occupancy, especially “missing
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