PSA - Zimmerman-Volk Associates, Inc. - Housing Market Study

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SCOPE OF SERVICES AND FEE ESTIMATE An Analysis of Residential Market Potential Page 6 City of South Bend, St. Joseph County, Indiana August 9, 2017 {revisedl PHASE TWO: MARKET ANALYSIS TASK 2.1—MARKET POTENTIAL: TARGET MARKET ANALYSIS To achieve the study objectives and establish the framework for analysis, Zimmerman/Volk Associates will employ its proprietary target market methodology. In contrast to conventional supply/demand analysis —which is based on supply-side dynamics and baseline demographic projections —target market analysis establishes the optimum market position for new housing based on the housing and lifestyle preferences and financial capabilities of households in the draw areas. Task 2.1.1—Draw Area Delineation Zimmerman/Volk Associates will identify the appropriate draw areas for housing within St. Joseph County and the City of South Bend, based on historical settlement patterns, migration trends, and other market dynamics. Task 2.1.2—Determination of Market Potential Zimmerman/Volk Associates will determine the depth and breadth of the potential market for the City of South Bend --including rehabilitation/renovation or adaptive re -use of existing structures as well as new construction —through target market analysis of households in the draw areas, as follows: • Current (2017) household classification by market group within the draw areas. • Qualification and filtering of the draw area households by relevant criteria including, among others, housing and neighborhood preferences and household mobility rates. • Identification of those households within the draw areas with the potential to move within or to the City of South Bend each year over the next five years. The potential market will be correlated by household group (empty-nesters/retirees, traditional and non-traditional families, younger singles/couples); by tenure (rental and ownership); by income (below 30 percent AMI, between 30 and 60 percent AMI, between 60 and 80 percent AMI, between 80 and 100 percent AMI, and above 100 percent AMI, or other income categories to meet specific client objectives); and by housing type (e.g.-- multi -family for -rent and for -sale {lofts/apartments}, single-family attached {rowhouses/townhouses/live-world; single-family detached). Task 2.1.3—The Current Context Analysis of the current context, including existing conditions as well as information, as available, on relevant newly -created for -sale developments and relevant recently - developed rental properties. Zimmerman/Volk Associates will evaluate the current residential context city-wide in relation to target market housing preferences. ZIMMERMANNOI.K ASSOCIATES, INC.