Napa Creek Village provides much needed rental housing in the Napa Metro area. Strong job growth and relocation are driving demand, yet the insufficient supply and increasing rates of rental housing require many people to commute instead of reside close to their jobs: 50% of the people who work in Napa commute from outside communities. Even with a recovering housing market, construction starts for multifamily housing in the City of Napa have been low over the past 10 years. Further, the Rural Urban Limit Line (RUL) constrains the inventory of raw land that developers can use to increase supply.
The City's vacancy rate for market rate apartments is very low - between 1-2%. Generally, a 4.5-5% vacancy rate is considered normal. This puts pressure on rents to rise and contributes to overcrowding. Recent data released by real estate website Zillow showed that renting in Napa is becoming unaffordable for those in the lower income brackets and in the middle class as well; in fact, Napa is the 11th most expensive metro area in the country to rent.
The demographics of the project include units targeted for Market Rate, Workforce, and Affordable housing. There are currently 400-500 families on the waiting list for affordable housing in Napa. It is important to note that the units will be configured as condominiums, resulting in feature-rich rental properties that can be sold individually. Thriving Communities plans to sell the units after approximately 10 years, and tenants will have the option of participating in a rent-to-own program to assist with the down payment, mortgage, and mortgage insurance. Napa Creek Village is designed to be an ideal product for renters to transition to first-time property ownership.