St. Charles expected to see growth in rental multifamily housing units
With hundreds of rental units under development, St. Charles municipal officials expect to see an increase in future rental development proposals as space in the city dwindles - and that's not such a bad thing, Mayor Lora Vitek said.
There are nearly 1,000 planned rental units under development in St. Charles.
Russel Colby, the city's director of community development, said residential development is likely to continue on the current trend of increasing multifamily housing developments.
Colby said multifamily rental units have been leasing rapidly. And while there is still a high demand for single-family homes, neighborhood developers are running out of available space in St. Charles.
Vitek said the city needs more people, and increasing the population density will help grow the economy.
"As we continue to build density, it makes new businesses want to come here and helps current business to thrive," Vitek said. "We need to be strategic in the placement of that density, but we need it to continue to grow."
Colby said developers looking to build in St. Charles are limited by the types of properties available and how little space is fit for redevelopment. As a result, he said, multifamily residential housing has been in high demand as developers have found it better fits the available sites.
"The past few years, we've definitely seen more interest in rental developments of different types," Colby said. "Both within the downtown and elsewhere in the community, where additional housing has been in demand."
Colby said there still is developable space on the city's west side, along Route 38 west of Meijer and near the fairgrounds, and on the north side of town near Route 31.
"St. Charles has always had a mix of different housing types and price points," Colby said. "There has always been a pretty good balance."
Vitek said St. Charles development is guided by the recently developed strategic plan and the housing commission, which work toward maintaining a good mix of housing.
"You have people here that have lived here forever and want to stay and young people building a future," Vitek said. "We need to be attractive to all those populations if we want to continue to grow and bring in new business."
Vitek said residents she has talked to have mixed opinions on multifamily developments that vary based on where it is located. While she says she doesn't think the majority of residents want apartment complexes along the river, there is an interest in increased density near the former Charlestowne Mall.
With the former mall in a robust industrial section of town and little surrounding residential development to support it, Vitek said it is a good place for apartments as the industrial workers need the housing.
Vitek said many people are looking for a different style of living in St. Charles.
Vitek said there is a wide-ranging demographic for renters in St. Charles, including people downsizing, older residents who don't want a lot to maintain, young professionals and single parents who don't need a lot of space.
St. Charles is an attractive community to developers because of its growth and charm, Vitek said.
Vitek said the city has a reputation with developers for being easy to work with. She also credited city staff members for their openness to listening and communicating with developers and residents.
According to RentCafe, the majority of apartments in St. Charles rent between $1,500 and $2,000, and the average rent is just over $1,800 per month. Vitek said affordable rentals are something the city wants to bring in and the housing commission works toward.
"We as a city council have to figure out how to make that work for the developer," Vitek said. "No one is going to develop something that they're going to lose money on. We have opportunities with the housing commission fund that is potentially available to support that."
The housing commission fund is intended to be used as an incentive for developers to bring in affordable housing.