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HomeMy WebLinkAboutNortheast-Residental-Market-Potential-2021 An Analysis of Residential Market Potential The Northeast Study Area City of South Bend Saint Joseph County, Indiana February, 2021 Conducted by On Behalf of ZIMMERMAN/VOLK ASSOCIATES, INC. THE CITY OF SOUTH BEND P.O. Box 4907 227 West Jefferson Boulevard Clinton, New Jersey 08809 South Bend, Indiana 46601 ZIMMERMAN/VOLK ASSOCIATES, INC. Post Office Box 4907 Clinton, New Jersey 08809 908 735-6336 info@ZVA.cc • www.ZVA.cc Residential Market Analysis Across the Urban-to-Rural Transect STUDY CONTENTS AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL THE NORTHEAST STUDY AREA 1 Introduction 1 Map: Northeast Sstudy Area 2 Overview of the City of South Bend 4 Overview of the Northeast Study Area 6 City-Wide Average Annual Market Potential 8 Where are the potential renters and buyers of new and existing housing units in the City of South Bend likely to move from? 8 How many households have the potential to move within and to the city each year? 9 Average Annual Market Potential for the Northeast Study Area 10 Where are the potential renters and buyers of new and existing housing units in the Northeast Study Area likely to move from? 10 How many households have the potential to move to the Northeast Study Area each year over the next five years if appropriate housing units were to be made available? 10 What are their housing preferences in aggregate? 10 What is their range of affordability by housing type? 11 Target Market Analysis 13 Who are the households that represent the potential market for new and existing housing units in the Northeast Study Area? 13 The Current Context 17 What are their current housing alternatives? 17 —MULTI-FAMILY RENTAL PROPERTIES— 17 —MULTI-FAMILY AND SINGLE-FAMILY ATTACHED FOR-SALE PROPERTIES— 19 —SINGLE-FAMILY DETACHED FOR-SALE PROPERTIES— 20 Optimum Market Position: Northeast Study Area 22 What are the rents and prices that correspond to target household financial capabilities? 22 —Rental Multi-Family Distribution by Rent Range— 23 —For-Sale Multi-Family Distribution by Price Range— 25 —For-Sale Single-Family Attached Distribution by Price Range— 26 —For-Sale Single-Family Detached Distribution by Price Range— 28 —OPTIMUM MARKET POSITION: NORTHEAST STUDY AREA— 30 What are the rents and prices and unit sizes and configurations that match target household preferences? 30 Market Capture: Northeast Study Area 34 How fast will the units lease or sell? 34 Northeast Study Area Building Types 36 AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page ii The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. Main Tables 39 Table 1: Average Annual Market Potential for New and Existing Housing Units Table 2: Average Annual Market Potential by Lifestage and Income Range Table 3: Summary of Selected Rental Properties Table 4: Summary of Selected For-Sale Multi-Family and Single-Family Attached Properties Table 5: Summary of Selected Single-FamilyDetached Properties Table 6: Target Groups for New Multi-Family For-Rent Table 7: Target Groups for New Multi-Family For-Sale Table 8: Target Groups for New Single-Family Attached For-Sale Table 9: Target Groups for New Single-Family Detached For-Sale Table 10: Optimum Market Position: Workforce and Market-Rate Units Assumptions and Limitations Rights and Study Ownership o ZIMMERMAN/VOLK ASSOCIATES, INC. Post Office Box 4907 Clinton, New Jersey 08809 908 735-6336 info@ZVA.cc • www.ZVA.cc Residential Market Analysis Across the Urban-to-Rural Transect AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL THE NORTHEAST STUDY AREA The City of South Bend, St. Joseph County, Indiana February, 2021 INTRODUCTION The purpose of this study is to determine the annual market potential and optimum market position for newly-introduced rental and for-sale housing units that could be developed within the Northeast Study Area in the City of South Bend, Indiana over the next five years. The optimum market position for new housing units in the Northeast Study Area has been determined based on: the housing preferences, financial capacities, and lifestyle characteristics of the target households; the Study Area’s location, visibility and physical attributes; the rental and for-sale housing market context in the Northeast South Bend market area; and Zimmerman/Volk Associates’ extensive experience with urban development and redevelopment. For the purposes of this analysis, the Northeast Study Area covers all of Census Tract 10, and the northernmost portion of Census Tract 9; the Study Area lies directly south of the University of Notre Dame campus. The boundaries include East Angela Boulevard in the north; North Twyckenham Boulevard in the east; East Rockne Drive and East Madison Street in the south; and North Hill Street in the west. The western edge also extends west along East Corby Boulevard from North Hill Street to the St. Joseph River and from the river east along East Howard Street, to north along North Niles Avenue, to east along East St. Vincent Street, to north along North Lawrence Street, to east on East Napoleon Boulevard, to north on North St. Louis Boulevard, to end at East Angela Boulevard. (See NORTHEAST STUDY AREA map following this page.) AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 2 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. NORTHEAST STUDY AREA The extent and characteristics of the potential market for new housing units that could be developed within the Northeast Study Area have been determined using Zimmerman/Volk Associates’ proprietary target market methodology. This methodology was developed in response to the challenges that are inherent in the application of conventional supply/demand analysis to urban development and redevelopment. Supply/demand analysis ignores the potential impact of newly- introduced housing supply on settlement patterns, which can be substantial when housing choices in the market are increased with new housing types that match the housing preferences and economic capabilities of the draw area households. In contrast to conventional supply/demand analysis, which is typically limited by supply-side dynamics and baseline demographic projection, target market analysis determines the depth and breadth of the potential market derived from the housing preferences and socio-economic characteristics of households in the defined draw areas. Because it considers not only basic demographic characteristics, such as income qualification and age, but also less frequently analyzed attributes such as lifestage, mobility rates, lifestyle patterns and household compatibility issues, the AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 3 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. target market methodology is particularly effective in defining a realistic housing potential for urban development and redevelopment where often no directly-comparable properties exist. For this analysis, then, Zimmerman/Volk Associates examined the following: • Where the potential renters and buyers of new dwelling units that could be developed within the Northeast Study Area currently live (the draw areas); • How many households have the potential to move to the Study Area each year (depth and breadth of the market); • What their housing preferences are in aggregate (rental or ownership, multi-family or single-family); • Who are they and what they are like (the target markets); • What are their current housing alternatives (the South Bend market context); • What are the rents and prices of new units that could be developed within the Northeast Study Area that correspond to target household financial capabilities (optimum market position); and • How quickly they will rent or purchase the new units (absorption forecasts). AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 4 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. OVERVIEW OF THE CITY OF SOUTH BEND According to Claritas, Inc., the national purveyor of demographic and survey data, there are an estimated 40,655 households living in the city in 2021. Currently, just over 63 percent of South Bend’s households contain just one or two persons (compared to 59 percent nationally), a slight increase over 2013; 15.1 percent contain three persons (a share which is unchanged from 2013), and the remaining 21.8 percent contain four or more persons (compared to 25.2 percent nationally), down from 22.3 percent in 2013. Almost 15.8 percent of the city’s households can be characterized as traditional families, e.g., married couples with children under age 18 (compared to 21.6 percent of all U.S. households), down from just under 17 percent in 2013. Non-traditional family households, headed by single persons with children under age 18, represent over 17 percent of the city’s households, down from over 18 percent in 2013. The remaining 67 percent of South Bend households do not have children under 18, an increase of more than two percentage points. Married couples without children are currently 19.3 percent of all households, down from 19.7 percent in 2013; other non-traditional family households, 7.4 percent, an increase from 6.5 percent of all households in 2013; and over 40 percent non-family households (primarily single-person households), from 39 percent in 2013. Median household income in the city is currently estimated at $44,900, $12,500 more than in 2013, with the average household income over $62,600. Nearly 45 percent of the households living in South Bend have annual incomes of $50,000 or more, compared to approximately 30 percent in 2013. The number of housing units in the city has risen from an estimated 46,055 units in 2013 to 47,575 units in 2021, an increase of 3.3 percent. Just over 73 percent of South Bend’s housing units are single-family detached houses, compared to approximately 77 percent in 2013. Just two percent are single-family attached (rowhouses or townhouses) and 2.7 percent are in two-unit buildings. Nearly 13 percent are located in buildings of three to 19 units, up two percentage points over 2013; and 8.1 percent are in buildings containing 20 or more units, an increase from 6.3 percent in 2013. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 5 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. Approximately 40 percent of the city’s households are renters; just under 60 percent own their units, a minimal change over the past eight years. The 2021 median value of the approximately 24,360 owner-occupied housing units is estimated at $102,900, an increase of approximately $15,000, but significantly less than the national median value of $250,300. Approximately 8.5 percent of the owner-occupied units have an estimated value of $300,000 or more. More than 11.6 percent of South Bend’s households do not own an automobile, up from approximately 10 percent in 2013; just under 42 percent own one vehicle, down from 45.5 percent in 2013. Almost 33 percent own two vehicles (just under 32 percent in 2013), and 13.8 percent own three or more, up from 12.3 percent in 2013. Approximately 2.8 percent of employed residents over age 16 walk to work (compared to more than 3.6 percent in 2013), less than two percent take public transportation (compared to 2.9 percent in 2013), 10.2 percent car-pool (compared to nine percent in 2013), and 79.6 percent drive alone (down from 80.2 percent in 2013). The remaining 5.5 percent either work at home (3.4 percent, up one percentage point), ride bicycles (1.2 percent, up 1/10th of one percent), or have other means of getting to work (0.9 percent, up 1/10th of one percent). Over 25.6 percent of all residents aged 25 or older have a college or advanced degree, more than four percentage points above the 2013 share of 21 percent. Nearly 53 percent of the city’s residents over age 16 are employed in white-collar occupations, 27.9 percent in blue-collar, and 19.3 percent in service occupations, with fewer white-collar occupations, more blue-collar jobs, and a relatively unchanged percentage of service and farm occupations. DATA SOURCES: Claritas, Inc.; U.S. Census Bureau; Zimmerman/Volk Associates, Inc. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 6 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. OVERVIEW OF THE NORTHEAST STUDY AREA As noted above, the Northeast Study Area encompasses multiple blocks which include all of Census Tract 10, and the northernmost portion of Census Tract 9. The Northeast Study Area has experienced significant development in close proximity to the University of Notre Dame campus. One of the first residential projects in the area was the 58-unit Dublin Village Townhouses, completed in 2005 and 2006. The multiple residential projects that followed targeted Notre Dame alumni, parents of Notre Dame students, and local renters and buyers. Eddy Street Commons, an urban mixed-use residential and commercial development located just south of the campus, was begun in 2008; two phases of the development are now complete and a third is underway. The Triangle Neighborhood, the blocks between Eddy Street Commons and South Bend Avenue, encompasses 63 single-family houses built between 2012 and 2016. Sales are restricted to owner-occupants. Because of the intensive residential and commercial development, the population of the Study Area grew from just over 3,100 persons as of the 2010 census to an estimated 3,950 persons in 2021, an increase of more than 27 percent, erasing the loss of more than 500 residents between 2000 and 2010. The number of households living in the Northeast Study Area is currently estimated at 1,500 households, up from just 1,154 as of the 2010 census, a 30 percent rise. Currently, just under 59 percent of the Study Area’s households contain just one or two persons, approximately the same as the national share; over 16 percent contain three persons, and approximately 25 percent contain four or more persons. Eleven percent of the Study Area’s households can be characterized as traditional families, e.g., married couples with children under age 18. Non-traditional family households, headed by single persons with children under age 18, represent 20.7 percent of Northeast Study Area households. The remaining 68 percent of Northeast households do not have children under 18 and include married couples (just over 14 percent of all households), other non-traditional family households (8.6 percent of all households), and 45.4 percent non-family households (primarily single-person households). AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 7 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. Median household income in the Northeast Study Area is currently estimated at $54,650, with average household income approaching $89,000. More than 53 percent of all households living in the Northeast Study Area have annual incomes of $50,000 or more. Almost 60 percent of the Northeast Study Area’s housing units are single-family detached houses; 2.2 percent are single-family attached (rowhouses or townhouses); 4.2 percent are in two-unit buildings; 11 percent are located in buildings of three to 19 units; and 22.3 percent are in buildings containing 20 or more units. Almost 54 percent of the Study Area’s housing units are rented; 46 percent are owner-ocupied. The 2021 median value of the approximately 700 owner-occupied Study Area housing units is estimated at $152,900; 38.5 percent of those units have an estimated value of $300,000 or more. Just 8.3 percent of the Northeast Study Area households do not own an automobile; 42.4 percent own only one. More than 38 percent own two vehicles, and the remaining 11 percent own three or more. Approximately 6.2 percent of employed residents over age 16 walk to work, just 1.3 percent take public transportation, five percent car-pool, and nearly 75 percent drive alone. The remaining 12.5 percent either work at home (4.9 percent), ride bicycles (6.4 percent), or have other means of getting to work (1.2 percent). Over 46.5 percent of Northeast residents aged 25 or older have a bachelor’s or advanced degree, more than 45 percent higher than the city-wide share of 25.6 percent. Two-thirds of the Study Area residents over age 16 are employed in white-collar occupations, 17 percent in blue-collar, and 16 percent in service occupations. This is a considerably higher rate of white-collar employment than that of the city as a whole, where just under 53 percent are white- collar workers. DATA SOURCES: Claritas, Inc.; U.S. Census Bureau; Zimmerman/Volk Associates, Inc. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 8 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. CITY-WIDE AVERAGE ANNUAL MARKET POTENTIAL Where are the potential renters and buyers of new and existing housing units in the City of South Bend likely to move from? An update of the migration, mobility and geo-demographic characteristics of households currently living within the defined draw areas is integral to the determination of the depth and breadth of the potential market for new housing units within the City of South Bend and the Downtown South Bend Study Area. An understanding of these mobility trends, as well as the socio-economic and lifestyle characteristics of households currently living within defined draw areas, is the first step in this update. The draw areas are derived primarily through household migration analysis (using the latest taxpayer data provided by the Internal Revenue Service). To refine the draw areas for the city, the IRS migration data have been supplemented by population migration and mobility data for the City of South Bend from the most recent American Community Survey. The latest St. Joseph County migration and mobility data—from taxpayer records compiled by the Internal Revenue Service from 2013 through 2017—and the 2019 American Community Survey for the City of South Bend show that the draw areas for new and existing housing units in the city and the Study Area include the following: • The primary draw area, covering households who live within the South Bend city limits. • The local draw area, covering households with the potential to move to the City of South Bend from the balance of St. Joseph County. • The regional draw area, covering households with the potential to move to the City of South Bend from Elkhart, Berrien, Cook, Marshall, and LaPorte Counties. • The national draw area, covering households with the potential to move to the City of South Bend from all other U.S. cities and counties, particularly Midwestern U.S. counties. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 9 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. As derived from the migration, mobility and target market update, the draw area distribution of market potential (those households with the potential to move within or to South Bend each year over the next five years) is as shown on the following table: Average Annual Market Potential by Draw Area City of South Bend, St. Joseph County, Indiana City of South Bend: 48.6% Balance of St. Joseph County: 20.7% Regional Draw Area (Elkhart, Berrien, Cook, Marshall, and LaPorte Counties): 11.9% Balance of the U.S.: 18.8% Total: 100.0% SOURCE: Zimmerman/Volk Associates, Inc., 2021. How many households have the potential to move within and to the city each year? As determined by the target market methodology, which accounts for household mobility within the City of South Bend, as well as migration and mobility patterns for households currently living in all other cities and counties, an annual average of 7,960 households of all incomes represent the potential market for new and existing housing units within the city each year over the next five years. Over 51 percent of the target households will be moving to the city from outside the South Bend city limits. (NOTE: This number includes all households, not just households with incomes at or above $50,000 per year, which was the calculation used in 2013.) AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 10 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. AVERAGE ANNUAL MARKET POTENTIAL FOR THE NORTHEAST STUDY AREA Where are the potential renters and buyers of new and existing housing units in the Northeast Study Area likely to move from? The target market methodology identifies those households that prefer living in downtowns and walkable urban neighborhoods. After eliminating those segments of the potential city-wide market that have preferences for new or existing housing in more suburban, exurban, or rural areas, the distribution of draw area market potential for new and existing housing units in the Study Area is summarized on the following table: Annual Average Market Potential by Draw Area Northeast Study Area City of South Bend, St. Joseph County, Indiana City of South Bend: 27.9% Balance of St. Joseph County: 32.2% Regional Draw Area (Elkhart, Berrien, Cook, Marshall, and LaPorte Counties): 13.2% Balance of the U.S.: 26.7% Total: 100.0% SOURCE: Zimmerman/Volk Associates, Inc., 2021. How many households have the potential to move to the Northeast Study Area each year over the next five years if appropriate housing units were to be made available? Based on the target market analysis, then, an annual average of 3,405 traditional and non-traditional families, younger singles and couples, and empty nesters and retirees of all incomes represent the annual potential market for new and existing housing units of any kind in the Northeast Study Area each year over the next five years (see Table 1 following the text). What are their housing preferences in aggregate? The tenure (rental or ownership) preferences of 3,405 draw area households show that 32.3 percent of these households (or 1,100 households) comprise the annual potential market for new and existing rental units and the remaining 67.7 percent (2,305 households) comprise the market for new and existing for-sale (ownership) housing units. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 11 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. The combined tenure and housing type propensities of the target 3,405 renter and owner households are outlined on the following table (see again Table 1 following the text): Tenure/Housing Type Propensities Average Annual Market Potential Northeast Study Area City of South Bend, St. Joseph County, Indiana NUMBER OF PERCENT HOUSING TYPE HOUSEHOLDS OF TOTAL Multi-family for-rent 1,100 32.3% (lofts/apartments, leaseholder) Multi-family for-sale 341 10.0% (lofts/apartments, condo/co-op ownership) Single-family attached for-sale 408 12.0% (townhouses/rowhouses, fee-simple/ condominium ownership) Single-family detached 1,556 45.7% (houses, fee-simple ownership) Total 3,405 100.0% SOURCE: Zimmerman/Volk Associates, Inc., 2021. As noted above, just under a third of the 3,405 target households comprise the market for rental dwelling units. The remaining 67.7 percent of the market would choose some form of ownership housing (almost eight percentage points higher than the current estimated homeownership rate in the city of just under 60 percent). Of the 2,305-household annual potential ownership market, 14.8 percent would prefer condominiums, 17.7 percent single-family attached (duplexes/townhouses), and 67.5 percent single-family detached houses. What is their range of affordability by housing type? The income limits in South Bend by household size and percent of median family income are based on the South Bend-Mishawaka IN HUD Metro Fair Market Rent (FMR) area median family income (AMI). The most recent number, as determined by HUD in fiscal year 2020, was $70,800 for a family of four. The income limits summary is shown on the table following this page: AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 12 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. Fiscal Year 2020 Income Limits City of South Bend, St. Joseph County, Indiana NUMBER OF PERSONS EXTREMELY LOW VERY LOW LOW IN HOUSEHOLD 30% OF MEDIAN 50% OF MEDIAN 80% OF MEDIAN One $14,900 $24,800 $39,700 Two $17,240 $28,350 $45,350 Three $21,720 $31,900 $51,000 Four $26,200 $35,400 $56,650 Five $30,680 $38,250 $61,200 Six $35,160 $41,100 $65,750 Seven $39,640 $43,900 $70,250 Eight $44,120 $46,750 $74,800 SOURCE: U.S. Department of Housing and Urban Development. The financial capabilities of the 3,405 target households as measured by the Area Median Income (AMI), combined with their tenure and housing type propensities are shown on the following table: Tenure/Housing Type Propensities by Income Annual Average Market Potential For New and Existing Housing Units Northeast Study Area City of South Bend, St. Joseph County, Indiana . . . . . . . . . HOUSEHOLDS . . . . . . . . HOUSING TYPE NUMBER PERCENT Multi-family for-rent 1,100 32.3% (lofts/apartments, leaseholder) < 30% AMI 227 6.6% 30% to 60% AMI 191 5.6% 60% to 80% AMI 118 3.5% 80% to 100% AMI 102 3.0% > 100% AMI 462 13.6% Multi-family for-sale 341 10.0% (lofts/apartments, condo/co-op ownership) < 30% AMI 76 2.2% 30% to 60% AMI 62 1.8% 60% to 80% AMI 36 1.1% 80% to 100% AMI 30 0.9% > 100% AMI 137 4.0% Single-family attached for-sale 408 12.0% (townhouses, rowhouses, fee-simple ownership) < 30% AMI 86 2.4% 30% to 60% AMI 71 2.1% 60% to 80% AMI 43 1.3% 80% to 100% AMI 36 1.1% > 100% AMI 172 5.1% . continued on the following page . . . . AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 13 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. . . . . continued from the preceding page . . . . . . . . . HOUSEHOLDS . . . . . . . . HOUSING TYPE NUMBER PERCENT Single-family detached for-sale 1.556 45.7% (houses, fee-simple ownership) < 30% AMI 274 8.0% 30% to 60% AMI 241 7.1% 60% to 80% AMI 164 4.8% 80% to 100% AMI 147 4.3% > 100% AMI 730 21.5% Total 3,405 100.0% NOTE: For fiscal year 2020-21, the South Bend-Mishawaka IN HUD Metro Fair Market Rent (FMR) area median family Income for a family of four is $70,800. SOURCE: Zimmerman/Volk Associates, Inc., 2021. Summarizing the incomes and financial capabilities of the 3,405 target households, 20.2 percent (663 households) have incomes below 30 percent of the AMI; 16.6 percent (565 households) have incomes between 30 and 60 percent AMI; 10.6 percent (361 households) have incomes between 60 and 80 percent AMI; 9.3 percent (315 households) have incomes between 80 and 100 percent AMI; and 44.1 percent (1,501 households) have incomes above 100 percent AMI. TARGET MARKET ANALYSIS Who are the households that represent the potential market for new and existing housing units in the Northeast Study Area? More than a decade later, the aftermath of the housing crash continues to reverberate throughout the housing market, evidenced by significant changes in market preferences from single-use subdivisions in sprawl locations to mixed-use, walkable development, particularly in downtowns and in-town neighborhoods. The preference for urban living evidenced by both younger and older one- and two- person households has been a primary force in urban redevelopment across the country, and continues despite popular press articles to the contrary that cite anecdotal pandemic-induced moves out of cities. Although this trend was notable at the onset of the pandemic, significant numbers of households who had left urban neighborhoods have now returned, and once the coronavirus is under control, urban occupancies should return to previous, pre-pandemic levels. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 14 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. As determined by the target market analysis, then, the general market segments, by lifestage, that represent the potential market for new and existing housing units in the Northeast Study Area are as follows (see also Table 2 following the text): • Traditional and non-traditional family households (41.9 percent); • Younger singles and childless couples (35.2 percent); and • Empty nesters and retirees (22.9 percent). Traditional and non-traditional families of all incomes represent a plurality—almost 42 percent—of the market for new and existing dwelling units in the Northeast Study Area. The “traditional family household” of a married couple with young children, which once comprised the majority of American households, has now fallen to less than 22 percent nationally (and less than 16 percent in South Bend). In urban neighborhoods, non-traditional families have become an increasingly larger proportion of the market, and encompass a wide range of family households, from a single mother or father with one or more children, an adult taking care of younger siblings, a grandparent responsible for grandchildren, to an unrelated couple of the same gender with children. Approximately 35.5 percent of the family households that comprise the annual potential market for the Study Area have incomes below 60 percent of AMI and are typically spending more than 40 percent of their incomes on housing costs. Many of these households are single-parent families struggling to make ends meet. Another 11.3 percent of the family-oriented households have incomes that fall within the 60-to-80 percent income band. A significant number of the heads of household in these family groups are manufacturing and blue-collar workers; the remainder have service or lower-level office jobs. The remaining 53.2 percent of the traditional and non-traditional families have incomes above 80 percent of AMI. These households are, in large part, dual-income households, with medical careers, academic positions, middle- to upper-middle management jobs, and professionals in the financial and legal sectors. Just under 29 percent of these families are already living in South Bend; and just over 29 percent are currently living elsewhere in St. Joseph County. Another 14.7 percent would be moving from the region, and 27.4 percent from elsewhere in the U.S. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 15 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. Just over 35 percent of the market for new and existing housing units in the Northeast Study Area is composed of younger singles and couples of all incomes. These households include young professionals, office and retail workers, knowledge workers, as well as students and other young college- and hospital-related employees. Approximately 41 percent of the younger singles and couples that comprise the target markets for the Northeast Study Area have incomes that fall below 60 percent of AMI. If they are employed, these households work in part-time or lower-paying jobs, including entry-level retail, such as store clerks, and service occupations, such as waiters and waitresses; most of the unemployed are students. Just under 11 percent of the households in this market segment have incomes that fall within the 60- to-80 percent income band. These include young artists and artisans, recent college graduates just beginning their careers, lower-level medical personnel, and general office workers, who have full-time employment. The remaining 48 percent of the younger singles and couples have incomes that are above 80 percent of the AMI, or just under $40,000 per year and up. These younger households are mid- and upper- level office workers; college and hospital affiliates; and an increasing percentage are engaged in a variety of entrepreneurial ventures. Thirty-five percent of the younger singles and couples would be moving to the Northeast Study Area from elsewhere in South Bend; 29.6 percent would be moving from elsewhere in St. Joseph County; 10.8 percent would be moving from the regional draw area; and the remaining 24.6 percent would be moving from elsewhere in the U.S. At just under 23 percent of the annual potential market for new and existing housing units in the Study Area, older households (empty nesters and retirees) of all incomes represent the smallest share of the market. A significant number of these target households have grown children who have recently moved out of the family home; another large percentage are retired. In this general market segment, approximately 29 percent have incomes at or below 60 percent of AMI—older singles and couples struggling on limited incomes, mostly from social security—many of whom are living in substandard housing. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 16 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. Another nine percent of the older target households have incomes between 60 and 80 percent of the area median. These households will often move to dwelling units that require less upkeep and maintenance expense, but if given appropriate housing options, would choose to remain in their current neighborhoods. Older households with incomes above 80 percent of AMI comprise 62 percent of the target empty nester and retiree market segment. These older singles and couples are enthusiastic participants in community life, and most are still actively involved in well-paying careers in the medical, legal, financial professions as well as academia. Just over 15 percent of the empty nesters and retirees would be moving from within the City of South Bend; nearly 42 percent would be moving from the balance of St. Joseph County; 14 percent from the regional draw area; and the remaining 29 percent would be moving from elsewhere in the U.S., primarily other counties in Indiana and the Midwest. APPENDIX THREE, TARGET MARKET DESCRIPTIONS, contains detailed descriptions of each of these target market groups and is provided in a separate document. The METHODOLOGY, APPENDICES ONE AND TWO, TARGET MARKET TABLES document describes how the target market groups for the Northeast Study Area have been determined. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 17 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. THE CURRENT CONTEXT What are their current housing alternatives ? Summary supply-side information for the South Bend market area (covering multi-family rental properties, and for-sale condominiums and for-sale single-family attached and detached properties) is provided in tabular form following the text: Table 3, Summary of Selected Rental Properties; Table 4, Summary of Selected For-Sale Multi-Family and Single-Family Attached Properties; and Table 5, Summary of Selected Single-Family Detached Properties. —MULTI-FAMILY RENTAL PROPERTIES— In January 2021, Zimmerman/Volk Associates compiled data from a variety of sources on 12 selected rental properties totaling more than 1,500 apartments located in in the Downtown and Northeast Study Areas. (See Table 3 following the text.) Ten of the properties are in the Downtown South Bend Study Area, seven of which have been built or developed since 2013. The largest new- construction Downtown property, 300 East LaSalle, has 144 studio to three-bedroom apartments, and is currently leasing units. Several of the rental properties provide a range of community amenities, typically fitness centers, clubhouses or residents’ lounges, and business centers. Redfin’s Walk Score has been included with each property listing. Although Walk Score measures only distance, and metrics such as intersection density and block lengths to grade the walkability of a specific address or neighborhood, it has grown in importance as a value criterion. Walk Scores above 90 indicate a “Walker’s Paradise,” where daily errands do not require a car. Walk Scores between 70 and 90 are considered to be very walkable, where most errands can be accomplished on foot, and Walk Scores between 50 and 69 are regarded as somewhat walkable, where some errands can be accomplished on foot. Walk Scores below 50 indicate that most or almost all errands require an automobile. The impact on housing values of walkability as calculated by Walk Score only begins to be measurable when Walk Scores reach 70 or above. Three of the Downtown properties included in the survey have Walk Scores over 70—The LaSalle on North Michigan Street (82), The Ivy at Berlin Place on South Lafayette Boulevard (75), and Colfax at Hill (75) on East Colfax Avenue. The AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 18 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. remaining Downtown rentals have Walk Scores above 65, approaching very walkable. The two Northeast properties, the Aurum Apartments and The Foundry North and South, score above 60. Base rent, unit sizes and rents per square foot for the 12 rental properties included in the survey are summarized on the following pages. —Studios (4 properties)— • Rents for studios range between $899 per month at the Ivy at Berlin Place on South Lafayette Boulevard, to $1,500 per month at 300 E LaSalle. • Studios contain between 390 square feet at the Foundry South on North Eddy Street in the Northeast, and 616 square feet at the Hibberd on South Main Street. • The studio rents per square foot range between $1.54 at the Ivy at Berlin Place and $2.97 at the Foundry South. —One-Bedroom Units (11 properties)— • Rents for one-bedroom apartments range from $750 per month at Central High & Stephenson Mill Apartments, an older property on West Colfax Avenue, to $2,023 per month at the Foundry South. • One-bedroom units range in size from 497 square feet at the Foundry South to 1,069 square feet at Central High & Stephenson Mill Apartments. • One-bedroom rents per square foot range between $1.07 at Central High & Stephenson Mill Apartments, to $2.44 at the Foundry South. —Two-Bedroom Units (all 12 properties)— • Rents for two-bedroom units range from $799 per month at Central High & Stephenson Mill Apartments to $2,420 per month at the Hibberd. • Two-bedroom units range in size from 803 square feet at Central High & Stephenson Mill Apartments, to 1,856 square feet at the same property. • Two-bedroom rents per square foot fall between $0.78 at Central High & Stephenson Mill Apartments, and $2.32 at the Foundry North. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 19 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. —Three-Bedroom Units (4 properties)— • Three-bedroom apartments range in rent from $1,949 per month at the Studebaker Lofts on North Main Street to $3,340 per month at the Foundry North. • Three-bedroom apartments contain between 1,159 at the Foundry North and 1,528 square feet at the same property. • Three-bedroom rents per square foot range between $1.64 at 300 E LaSalle and East Bank Flats on Sycamore Street to $2.19 at the Foundry North. Only four properties included in the survey had occupancy rates at 95 percent or above (functional full occupancy); in part because of the impact of the pandemic and in part because of the departure of a large number of out-of-state renters when the campaign offices of Mayor Pete Buttigieg closed down. With no clear end to the pandemic, it is likely occupancies will not return to the previous 95 percent and above over the short term. However, long term, occupancies will stabilize and most properties should regain functional full occupancy. —MULTI-FAMILY AND SINGLE-FAMILY ATTACHED FOR-SALE PROPERTIES— Table 4 provides base pricing and unit sizes and configuration information for six properties marketing new for-sale units in and around the Downtown. At the time of the survey, The Village at Riverwalk is being built out by Century Custom Builders on the former Transpo property in the East Bank area. The site is located along Northside Boulevard west of South Francis Street and southeast of Howard Park with views of the St. Joseph River; 41 townhouses have been built and sold, with one end unit for sale priced at $435,000 for four bedrooms and three-and-a-half baths in 2,280 square feet of living space ($191 per square foot). Some of the single-family lots have been converted to accommodate two-family units, and one of these units is also on the market for $395,000—a two-bedroom/three-bath model containing 2,830 square feet ($140 per square foot). Four new townhouses are still available of the six being marketed at Golden View Townhouses on North Notre Dame Avenue in Northeast South Bend. Three of the remaining units include four- bedrooms/five-and-a-half-baths with current listings priced between $795,000 and $799,000 for AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 20 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. 3,780 square feet ($210 and 211 per square foot) with a five-bedroom version priced at $879,000 for the same square footage ($233 per square foot). Only three condominiums remain of the 17 constructed at the luxury Three Twenty at the Cascade building in the East Bank area of Downtown. The least expensive available unit, a two- bedroom/three-bath apartment with study that contains 2,466 square feet is priced at $941,621 ($382 per square foot). The two penthouses are still to be sold, both containing three bedrooms and three and a half baths and approximately 2,700 square feet of living space. The asking price for one is $1,002,985 ($372 per square) and the other is priced somewhat higher at $1,067,397 ($395 per square foot). Two condominium penthouses on the top floor of the Traction HQ building on South Bend Avenue each contain three bedrooms and three baths. The smaller of the two units, at 2,395 square feet, is priced at $1,125,000 ($470 per square foot) and the larger unit, containing 2,438 square feet, is priced at $1,375,000 (564 per square foot). Two properties currently marketing units are located further east in South Bend. The Keenan Court Flats is selling 12 one-, two-, and three-bedroom condominiums priced between $169,900 and $267,500 ($204 to $280 per square foot), and the Echoes, on Ironwood Circle, is marketing three- and four-bedroom villas priced between approximately $500,000 and $600,000 ($198 to $241 per square foot). —SINGLE-FAMILY DETACHED FOR-SALE PROPERTIES— Table 5 provides prices, sizes and configuration information for seven selected properties or locations marketing new for-sale single-family detached houses in the South Bend market area. Two are located in the East Bank/Northeast area and five are being developed on the northwestern edges of the city. As noted in the previous section, the Village at Riverwalk, the Century Custom Builder’s residential development of the former Transpo site, opened for sales in 2017. The property has 60 townhouse lots, and 43 single-family lots. Prices of lots located on Notre Dame Avenue have ranged between $65,000 and $80,000, and $90,000 on Northside Boulevard with river views. As of February, 2021, AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 21 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. 15 single-family houses had been built and occupied, and only one house is currently for sale, containing four bedrooms and three baths in more than 2,700 square feet of living space, and priced at $495,000 ($182 per square foot). There are 25 lots available throughout the Notre Dame South area, and four houses)—two three- bedroom houses and two four-bedroom houses)—are currently listed for sale. The smallest house contains just over 2,000 square feet configured in three bedrooms and three baths and is priced at $524,900 ($256 per square foot). The other three-bedroom model is priced at $559,900 for 2,170 square feet of living space ($258 per square foot). The two four-bedroom houses are listed at $574,900 and $614,900 for 2,580 and 2,170 square feet, respectively ($223 and $283 per square foot). Houses being marketed in lower-Walk Score, auto-dependent single-family subdivisions on the northwestern edge of the city are considerably less expensive than those in more urban neighborhoods. Nearly of these new houses are priced between $200,000 and $300,000 for predominantly three- and four-bedroom models, and the prices per square foot range between $100 and $200, with most falling between $125 and $175. Irish Custom Homes, which builds in Notre Dame South, is also the builder of Audubon Woods, West Pointe Estates, and The Oaks, all subdivisions of 50 or fewer units. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 22 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. OPTIMUM MARKET POSITION: NORTHEAST STUDY AREA What are the rents and prices that correspond to target household financial capabilities? The rents and price points for the market-rate component of new rental housing units that could be developed in the Northeast Study Area are derived from the income and equity levels of those target households with annual incomes at or above 100 percent AMI, which ranges from $49,600 and up for a single-person household to $70,800 and up for a four-person household. (Typical household sizes in downtown locations range between one and four persons per household, with a predominance of one- and two-person households.) For new market-rate for-sale housing units, the target households have annual incomes above 120 percent AMI, which ranges from $59,600 and up for a single-person household and $104,800 and up for a four-person household. In the Northeast Study Area, households with incomes between 60 and 100 percent of the AMI comprise the market for new rental workforce housing units. These households have incomes ranging between $29,800 and $49,600 for a single-person household to $52,400 and $70,800 for a four- person household. For new for-sale workforce housing units, the targeted households have annual incomes between 80 and 120 percent AMI, ranging between $39,700 and $59,600 for a single-person household and between $56,650 and $104,800 for a four-person household. In general, households with annual incomes at or below 60 percent AMI do not qualify for new construction except for units financed using low-income housing tax-credits. If incomes are below 30 percent AMI, households typically qualify for public housing units and Section Eight vouchers. Rents are usually limited to no more than 30 percent of annual income. At 30 percent AMI, household incomes are less than $14,900 for a single-person household to less than $26,200 for a four-person household. The analysis is focused on those renter households with incomes at or above 60 percent AMI, which covers the incomes required to rent workforce and market-rate housing units, and on those buyer households with incomes at or above 80 percent AMI, which covers the incomes required to purchase workforce and market-rate condominiums (multi-family for-sale), rowhouses/townhouses (single- family attached for-sale), and detached houses (single-family attached for-sale). AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 23 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. The combined housing preferences by tenure and by income of the 1,934 target households with incomes at or above 60 percent AMI (renters) or 80 percent AMI (buyers) are shown on the following table: Tenure/Housing Type Propensities by Income Annual Average Market Potential For New and Existing Housing Units Northeast Study Area City of South Bend, St. Joseph County, Indiana . . . . . . . . . HOUSEHOLDS . . . . . . . . HOUSING TYPE NUMBER PERCENT Multi-family for-rent 682 35.3% (lofts/apartments, leaseholder) 60% to 80% AMI 118 6.1% 80% to 100% AMI 102 5.3% > 100% AMI 462 23.9% Multi-family for-sale 167 8.7% (lofts/apartments, condo/co-op ownership) 80% to 120% AMI 65 3.4% > 120% AMI 102 5.3% Single-family attached for-sale 208 10.7% (townhouses, rowhouses, fee-simple ownership) 80% to 120% AMI 76 3.9% > 120% AMI 132 6.8% Single-family detached for-sale 877 45.3% (houses, fee-simple ownership) 80% to 120% AMI 237 12.2% > 120% AMI 640 33.1% Total 1,934 100.0% NOTE: For fiscal year 2020-21, the South Bend-Mishawaka IN HUD Metro Fair Market Rent (FMR) area median family Income for a family of four is $70,800. SOURCE: Zimmerman/Volk Associates, Inc., 2021. —Rental Multi-Family Distribution by Rent Range— The number of households able to afford the specified rent ranges is detailed on the following table and was determined by calculating a monthly rental payment—excluding utilities and ranging between 25 and 30 percent of annual gross income. (Although it is quite possible that many households will pay up to 40 percent or even more of their annual gross incomes in rent, HUD recommends that a tenant pay no more than 30 percent of gross income for rent including utilities.) AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 24 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. An annual average of 682 households with incomes above 60 percent of the AMI represent the target markets for newly-constructed market-rate and workforce rental housing units in the Northeast Study Area (as shown on Table 6 following the text). The distribution by rent range of the rents those 682 households could support are summarized on the following table: Target Groups For New Multi-Family For Rent Households with Incomes Above 60% AMI Per Year Northeast Study Area City of South Bend, St. Joseph County, Indiana MONTHLY HOUSEHOLDS RENT RANGE PER YEAR PERCENTAGE $750–$1,000 64 9.4% $1,000–$1,250 109 16.0% $1,250–$1,500 120 17.6% $1,500–$1,750 146 21.4% $1,750–$2,000 118 17.3% $2,000–$2,250 62 9.1% $2,250–$2,500 37 5.4% $2,500–$2,750 15 2.2% Over $2,750 11 1.6% Total: 682 100.0% SOURCE: Zimmerman/Volk Associates, Inc., 2021. • The largest group of target renters are younger singles and couples, at almost 47 percent of the market potential for workforce and market-rate rental units in the Northeast Study Area. Less than three percent have careers that provide them with the financial capacity to afford rents above $2,250 per month. Close to the majority of the younger households—49.1 percent--comprise the market for units with rents between $750 and $1,500 per month. The remaining 48.1 percent of this market segment can support rents between $1,500 and $2,250 per month. • At just over a third of the annual potential rental market, traditional and non-traditional families are the next largest market for workforce and market-rate rental units in the Northeast Study Area. Over 12 percent of the family market can afford rents above $2,250 per month. Approximately 48.5 percent have the ability to pay rents between $1,500 and $2,250 per month, and the remaining 39.4 percent can only afford rents between $750 and $1,500 per month. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 25 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. • Empty nesters and retirees represent 19.5 percent of the market potential for workforce and market-rate rental units in the Northeast Study Area. Approximately 19.5 percent of the wealthiest empty nesters and retirees have the incomes and assets that enable them to afford rents at or above $2,250 per month. Nearly 46 percent make up the market for units with rents between $1,500 and $2,250 per month. The remaining percentage, 34.6 percent of this market segment, are only able to support rents between $750 and $1,500 per month. — For-Sale Multi-Family Distribution by Price Range— An annual average of 167 households represent the target markets for newly-constructed workforce and market-rate for-sale multi-family housing units within the Northeast Study Area (as shown on Table 7 following the text). Supportable price points have been determined by assuming a down payment of 10 percent, an interest rate of 3.5 percent, and a monthly mortgage payment, excluding taxes and utilities, that does not exceed 30 percent of gross income for each of the 167 households that represent the annual potential for-sale multi-family market, yielding the distribution shown on the following table: Target Groups For New Multi-Family For Sale Households with Incomes Above 80% AMI Per Year Northeast Study Area City of South Bend, St. Joseph County, Indiana PRICE HOUSEHOLDS RANGE PER YEAR PERCENTAGE $200,000–$250,000 24 14.4% $250,000–$300,000 22 13.2% $300,000–$350,000 29 17.3% $350,000–$400,000 28 16.7% $400,000–$450,000 22 13.2% $450,000–$500,000 12 7.2% $500,000–$550,000 12 7.2% $550,000–$600,000 11 6.6% $600,000 and up 7 4.2% Total: 167 100.0% SOURCE: Zimmerman/Volk Associates, Inc., 2021. • Younger singles and couples comprise slightly more than half, 52.1 percent, of the annual market for new for-sale multi-family units (condominiums) within the Northeast Study Area. Approximately 4.6 percent of the younger singles and couples have the income and assets to purchase new condominiums with base prices over $500,000. Another 38 percent AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 26 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. would be in the market for new units priced between $350,000 and $500,000. The clear majority, 57.5 percent, can only afford new condominiums with base prices between $200,000 and $350,000. • Traditional and non-traditional families are the next largest market segment at 27.5 percent of the annual market for new condominiums in the Northeast Study Area. A plurality, 39.2 percent, could afford new units priced between $350,000 and $500,000. Approximately 30.4 percent of the family households would be in the market for new condominiums with base prices over $500,000. The same percentage represent the family market for new condominiums priced between $200,000 and $350,000. • Empty nesters and retirees represent 20.4 percent of the annual market for new condominiums within the Northeast Study Area. Over 35 percent of these empty nesters and retirees have the income and assets to purchase new units priced over $500,000. Another 32.4 percent would be in the market for new condominiums with base prices between $350,000 and $500,000 and the same percentage could only afford new condominiums priced between $200,000 and $350,000. — For-Sale Single-Family Attached Distribution by Price Range— An annual average of 208 households represent the target markets for newly-constructed workforce and market-rate single-family attached housing units (townhouses) within the Northeast Study Area (as shown on Table 8 following the text). As with the condominiums, supportable price points for the townhouses have been determined by assuming a down payment of 10 percent, an interest rate of 3.5 percent, and a monthly mortgage payment, excluding taxes and utilities, that does not exceed 30 percent of gross income for each of the 208 households that represent the annual potential townhouse market, yielding the distribution shown on the table following this page. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 27 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. Target Groups For New Single-Family Attached For Sale Households with Incomes Above 80% AMI Per Year Northeast Study Area City of South Bend, St. Joseph County, Indiana PRICE HOUSEHOLDS RANGE PER YEAR PERCENTAGE $200,000–$250,000 20 9.6% $250,000–$300,000 25 12.0% $300,000–$350,000 32 15.4% $350,000–$400,000 35 16.7% $400,000–$450,000 27 13.0% $450,000–$500,000 22 10.6% $500,000–$550,000 23 11.1% $550,000–$600,000 11 5.3% $600,000 and up 13 6.3% Total: 208 100.0% SOURCE: Zimmerman/Volk Associates, Inc., 2021. • At just over 40 percent of the annual potential market, younger singles and couples represent a plurality of the market for workforce and market-rate townhouses in the Northeast Study Area. Over 46 percent represent the annual market for townhouses with base prices between $200,000 and $350,000. Another 44 percent are able to purchase townhouses with base prices between $350,000 and $500,000. Less than 10 percent have sufficient income to purchase new units priced above $500,000. • At just under 39 percent, traditional and non-traditional families are the next largest group of potential purchasers of new workforce and affordable townhouses within the Northeast Study Area. Nearly 26 percent of the target traditional and non-traditional families have the income and assets that enable them to purchase new townhouses with base prices above $500,000. Another 40.7 of the family market can afford base prices of new townhouses between $350,000 and $500,000, and the remaining third can support base prices between $200,000 and $350,000. • The smallest group of buyers of workforce and market-rate townhouses are the empty nesters and retirees, at just under 21 percent of the annual potential market in the Northeast Study Area. Almost 42 percent of the empty nesters and retirees represent the annual potential market for townhouses with base prices above $500,000. Another third could afford to purchase townhouses with base prices ranging between $350,000 and $500,000. The AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 28 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. remaining 25.6 percent are only able to purchase units priced between $200,000 and $350,000 — For-Sale Single-Family Detached Distribution by Price Range— An annual average of 877 households represent the target markets for newly-constructed workforce and market-rate single-family detached housing units (houses) within the Northeast Study Area (as shown on Table 9 following the text). As with the condominiums, supportable price points for the single-family houses have been determined by assuming a down payment of 10 percent, an interest rate of 3.5 percent, and a monthly mortgage payment, excluding taxes and utilities, that does not exceed 30 percent of gross income for each of the 877 households that represent the annual potential detached house market, yielding the distribution shown on the following table: Target Groups For New Single-Family Detached For Sale Households with Incomes Above 80% AMI Per Year Northeast Study Area City of South Bend, St. Joseph County, Indiana PRICE HOUSEHOLDS RANGE PER YEAR PERCENTAGE $200,000–$250,000 71 8.1% $250,000–$300,000 111 12.7% $300,000–$350,000 110 12.5% $350,000–$400,000 109 12.4% $400,000–$450,000 123 14.1% $450,000–$500,000 117 13.4% $500,000–$550,000 130 14.8% $550,000–$600,000 60 6.8% $600,000 and up 46 5.2% Total: 877 100.0% SOURCE: Zimmerman/Volk Associates, Inc., 2021. • At just under 51 percent, traditional and non-traditional families make up the majority of potential purchasers of new workforce and affordable single-family detached houses within the Northeast Study Area. Over 31 percent of the target traditional and non-traditional families have the income and assets that enable them to purchase new detached houses with base prices above $500,000. Another 38.6 percent of the family market can afford base prices of new single-family houses between $350,000 and $500,000, and the remaining 30 percent can support base prices between $200,000 and $350,000. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 29 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. • The second largest group of buyers of workforce and market-rate houses are the empty nesters and retirees, at just under a third of the annual potential market for new detached houses in the Northeast Study Area. Over 32 percent of the target empty nesters and retirees represent the annual potential market for new single-family detached houses with base prices above $500,000. Another 44.3 percent could afford to purchase single-family houses with base prices ranging between $350,000 and $500,000. The remaining 23.3 percent would be in the market for detached houses priced between $200,000 and $350,000 • At just over 16 percent of the annual potential market, younger singles and couples represent the smallest market for workforce and market-rate single-family houses in the Northeast Study Area. Over 63 percent represent the annual market for detached houses with base prices between $200,000 and $350,000. Another 35 percent are able to purchase single- family houses with base prices between $350,000 and $500,000. Approximately two percent have sufficient income to purchase new units priced above $500,000. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 30 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. —OPTIMUM MARKET POSITION: NORTHEAST STUDY AREA— What are the rents and prices and unit sizes and configurations the match target household preferences? As detailed in the preceding section, an annual average of 682 potential renters, 167 potential condominium purchasers, 208 potential townhouse purchasers, and 877 potential purchasers of single-family detached houses comprise the annual potential market for new workforce and market- rate rental and ownership housing units in the Northeast Study Area each year over the next five years. Based on the target households financial capabilities and housing preferences, the optimum market position for new workforce and market-rate rental and for-sale housing units within the Northeast Study Area is summarized on the following table (see also Table 10 following the text): Optimum Market Position Northeast Study Area City of South Bend, St. Joseph County, Indiana PERCENT UNIT BASE RENT/ UNIT BASE RENT/PRICE MIX CONFIGURATION PRICE SIZE PER SQ. FT. MULTI-FAMILY FOR-RENT . . . . . Workforce (60 to 100% AMI). . . . . 30% Studio/1ba $750 to 400 to $1.88 to $1,100 550 sf $2.00 30% 1br/1ba $850 to 500 to $1.70 to $1,275 650 sf $1.96 25% 2br/1ba $1,150 to 700 to $1.64 to $1,600 850 sf $1.88 15% 2br/2ba $1,350 to 900 to $1.50 to $1,750 1,000 sf $1.75 . continued on the following page . . . . AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 31 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. . . . . continued from the preceding page PERCENT UNIT BASE RENT/ UNIT BASE RENT/PRICE MIX CONFIGURATION PRICE SIZE PER SQ. FT. MULTI-FAMILY FOR-RENT . . . . . Market-Rate (100% AMI and up). . . . . 25% Studio/1ba $1,500 to 500 to $2.75 to $1,650 600 sf $3.00 30% 1br/1ba $1,750 to 650 to $2.47 to $2,100 850 sf $2.69 25% 2br/2ba $1,850 to 950 to $1.95 to $2,500 1,100 sf $2.27 20% 3br/2ba $2,600 to 1,200 to $1.93 to $2,800 1,450 sf $2.17 MULTI-FAMILY FOR-SALE . . . . . Workforce (80 to 100% AMI). . . . . 40% 1br/1ba $195,000 to 800 to $244 to $250,000 950 sf $264 25% 2br/1ba $235,000 to 1,000 to $235 to $265,000 1,100 sf $241 35% 2br/2ba $275,000 to 1,150 to $239 to $300,000 1,250 sf $240 . . . . . Market-Rate (120% AMI and up). . . . . 20% 1br/1ba $325,000 to 900 to $361 to $350,000 950 sf $368 25% 2br/1.5ba $375,000 to 1,100 to $333 to $400,000 1,200 sf $341 30% 2br/2ba $435,000 to 1,350 to $317 to $475,000 1,500 sf $322 25% 3br/2ba $525,000 to 1,700 to $300 to $750,000 2,500 sf $309 SINGLE-FAMILY ATTACHED FOR-SALE . . . . . Workforce (80 to 120% AMI). . . . . 25% 2br/1.5ba $225,000 to 1,000 to $225 to $300,000 1,200 sf $250 45% 2br/2.5ba $265,000 to 1,250 to $212 to $325,000 1,350 sf $241 30% 3br/2.5ba $300,000 to 1,300 to $212 to $350,000 1,650 sf $231 . continued on the following page . . . . AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 32 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. . . . . continued from the preceding page PERCENT UNIT BASE UNIT BASE PRICE MIX CONFIGURATION PRICE SIZE PER SQ. FT. SINGLE-FAMILY ATTACHED FOR-SALE . . . . . Market-Rate (120% AMI and up). . . . . 25% 2br/2.5ba $425,000 to 1,500 to $277 to $485,000 1,750 sf $283 30% 3br/2.5ba $515,000 to 1,850 to $269 to $565,000 2,100 sf $278 25% 3br/3.5ba $595,000 to 2,200 to $260 to $650,000 2,500 sf $270 20% 4br/3.5ba $700,000 to 2,650 to $258 to $800,000 3,100 sf $264 SINGLE-FAMILY DETACHED FOR-SALE . . . . . Workforce (80 to 120% AMI). . . . . 30% 3br/2ba $275,000 to 1,300 to $212 to $350,000 1,500 sf $233 40% 3br/2.5ba $375,000 to 1,700 to $208 to $395,000 1,900 sf $221 30% 3br/2.5ba $400,000 to 2,000 to $185 to $425,000 2,300 sf $200 . . . . . Market-Rate (120% AMI and up). . . . . 40% 3br/3.5ba $500,000 to 1,900 to $250 to $550,000 2,200 sf $263 30% 4br/3.5ba $600,000 to 2,400 to $245 to $675,000 2,750 sf $250 30% 4br/4.5ba $725,000 to 3,000 to $239 to $825,000 3,450 sf $242 SOURCE: Zimmerman/Volk Associates, Inc., 2021. Based on the mix of unit types, sizes, and rents/prices outlined in the optimum market position, the weighted average rents and prices for each of the housing types are shown on the table following this page. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 33 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. Weighted Average Base Rents/Prices and Size Ranges Northeast Study Area City of South Bend, St. Joseph County, Indiana WEIGHTED AVERAGE HOUSING WEIGHTED AVERAGE WEIGHTED AVERAGE BASE RENTS/PRICES TYPE BASE RENTS/PRICES UNIT SIZE PER SQ. FT. MULTI-FAMILY FOR-RENT Workforce $1,168 650 sf $1.80 psf Market-Rate $2,004 851 sf $2.36 psf MULTI-FAMILY FOR-SALE Workforce $251,200 1,033 sf $243 psf Market-Rate $471,550 1,469 sf $321 psf SINGLE-FAMILY ATTACHED FOR-SALE Workforce $291,950 1,281 sf $228 psf Market-Rate $610,300 2,284 sf $267 psf SINGLE-FAMILY DETACHED FOR-SALE Workforce $367,400 1,763 sf $208 psf Market-Rate $645,882 2,617 sf $247 psf SOURCE: Zimmerman/Volk Associates, Inc., 2021. The proposed prices are in year 2021 dollars and are exclusive of location or floor premiums and consumer-added options or upgrades. As in the Downtown Study Area, location will have a significant impact on values, depending on proximity to the University of Notre Dame campus ranging between a 10 to 20 percent premium. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 34 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. MARKET CAPTURE: NORTHEAST STUDY AREA How fast will the units lease or sell? Based on 33 years’ experience using the target market methodology in 47 states, Zimmerman/Volk Associates has developed and refined a capture rate methodology scaled to study area size and context. Zimmerman/Volk Associates has determined that, for a Study Area the size of the Northeast, an annual capture of between 10 and 12 percent of the annual average number of potential renters, an annual capture of between five and 7.5 percent of the average number of potential condominium and townhouse buyers, and an annual capture of between 2.5 and 3.5 percent of the average number of potential buyers of detached houses is supportable each year over the next five years, assuming the production of appropriately-positioned new/renovated housing. Based on these capture rates, annual average absorption of new workforce and market-rate housing units in the Northeast Study Area is forecast as follows (see again Table 10 following the text): Annual Forecast Absorption Northeast Study Area City of South Bend, St. Joseph County, Indiana ANNUAL CAPTURE UNITS ABSORBED RATES MULTI-FAMILY FOR-RENT Total 68 - 82 10 – 12% 60% to 100% AMI 22 - 26 >100% AMI 46 - 56 MULTI-FAMILY FOR-SALE Total 15 - 17 8.5 – 10% 80% to 120% AMI 6 - 7 >120% AMI 9 - 10 SINGLE-FAMILY ATTACHED FOR-SALE Total 17 - 21 8.5 – 10% 80% to 120% AMI 6 - 8 >120% AMI 11 - 13 SINGLE-FAMILY DETACHED FOR-SALE Total 22 - 30 2.5 – 3.5% 80% to 120% AMI 6 - 8 >120% AMI 16 - 22 SOURCE: Zimmerman/Volk Associates, Inc., 2021. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 35 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. Based on these capture rates, the Northeast Study Area should be able to absorb between 122 and 150 new units per year over a five-year timeframe, or a five-year total of more than 600 to 750 new rental and for-sale workforce and market-rate housing units. New housing units, configured according to target market preferences, can not only attract new households to the Northeast Study Area and to the City of South Bend, but can also provide appropriate alternatives to households that, due to a change in household composition or economic status, might otherwise have moved out of the city. The capture rates of the annual potential market used here fall within the target market methodology’s parameters of feasibility. NOTE: The target market capture rates of the potential purchaser or renter pool are a unique and highly-refined measure of feasibility. Target market capture rates are not equivalent to—and should not be confused with—penetration rates or traffic conversion rates. The target market capture rate is derived by dividing the annual forecast absorption—in aggregate and by housing type—by the number of households that have the potential to purchase or rent new housing within a specified area in a given year. The penetration rate is derived by dividing the total number of dwelling units planned for a property by the total number of draw area households, sometimes qualified by income. The traffic conversion rate is derived by dividing the total number of buyers or renters by the total number of prospects that have visited a site. Because the prospective market for a property or study area is more precisely defined using the residential target market methodology, a substantially smaller number of households are qualified; as a result, target market capture rates are higher than the more grossly-derived penetration rates. The resulting higher capture rates remain within the range of feasibility. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 36 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. NORTHEAST STUDY AREA BUILDING TYPES Building and unit types most appropriate for the Northeast Study Area include: —MULTI-FAMILY BUILDINGS— • Courtyard Apartment Building: In new construction, an urban-scale, pedestrian-oriented equivalent to conventional garden apartments. An urban courtyard building is at minimum three, and typically four or more stories, often combined with non-residential uses on the ground floor, or with a ground floor configured for later conversion from residential to retail use. The building should be built to the sidewalk edge and when the ground-floor serves a permanent residential use it should be elevated significantly above grade to provide privacy and a sense of security. Parking is either below grade, at grade behind or in a parking courtyard, or in an integral structure. • Liner Building: An apartment building with apartments and/or lofts lining two to four sides of a multi-story parking structure. Units are typically served from a single-loaded corridor that often includes access to parking. Ground floors typically include a traditional apartment lobby and can also include maisonette apartments, retail or some combination of the two. • Loft Apartment Building: Either adaptive re-use of older warehouse or manufacturing buildings or a new-construction building type inspired by those buildings. The new- construction version is usually elevator-served with double-loaded corridors. • Mansion Apartment Building: A two- to three-story flexible-use structure with a street façade resembling a large detached or attached house (hence, “mansion”). The attached version of the mansion, typically built to a sidewalk on the front lot line, is most appropriate for downtown locations. Because of the small number of units, mansion buildings are particularly well-suited to condominium development since meeting pre-sales financing requirements is less challenging. The mansion building can also accommodate a variety of uses—from apartments, professional offices, any of these uses over ground-floor retail, a bed and breakfast inn, or a large single-family detached house—and its physical structure complements other buildings within a neighborhood. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 37 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. Parking behind the mansion buildings can be either alley-loaded, or front-loaded served by shared drives. The form of the parking can be in open lots, in garages with units above, or integral to the building. Mansion buildings should be strictly regulated in form, but flexible in use. However, flexibility in use is somewhat constrained by the handicapped accessibility regulations in both the Fair Housing Act and the Americans with Disabilities Act. • Mixed-Use Building: A pedestrian-oriented building, either attached or free-standing, with apartments and/or offices over flexible ground floor uses that can range from retail to office to residential. • Podium Building: An apartment building construction type with three to five stories of stick- frame residential units (lofts or apartments) built over one or two levels of above-grade structured parking, usually constructed with reinforced concrete. With a well-conceived street pattern, a podium building can include ground-level non-residential uses lining one or more sides of the parking deck. —SINGLE-FAMILY ATTACHED— • Rowhouses/Townhouses: Similar in form to a conventional suburban townhouse except that the garage—either attached or detached—is located to the rear of the unit and accessed from an alley or auto court. Unlike conventional townhouses, urban rowhouses/townhouses conform to the pattern of streets, typically with shallow front-yard setbacks. To provide privacy and a sense of security, the first floor should be elevated significantly above the sidewalk. The rowhouse, as distinct from the townhouse, typically has a uniform front façade and cornice height. • Duplexes: Two-unit townhouses with the garages—either attached or detached—located to the rear of the units. Like the rowhouses, urban duplexes conform to the pattern of streets, typically with shallow front-yard setbacks. In a corner location, duplex units can each front a different street. • Live-work is a unit or building type that accommodates non-residential uses in addition to, or combined with living quarters. The typical live-work unit is a building, either attached or AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 38 The Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 ZIMMERMAN/VOLK ASSOCIATES, INC. detached, with a principal dwelling unit that includes space that can be used as office, retail, or studio space, or as an accessory dwelling unit. Regardless of the form they take, live-work units should be flexible in order to respond to economic, social and technological changes over time and to accommodate as wide as possible a range of potential uses. The unit configuration must also comply with the requirements of the Fair Housing Amendments Act and the Americans with Disabilities Act. —SINGLE-FAMILY DETACHED— • Cottages/Bungalows: Small one-, one-and-a-half- or two-story single-family detached houses on small lots, usually with alley-loaded parking. • Urban Houses: Two- or three-story single-family detached houses on relatively-small lots, often, but not always with alley-loaded parking. Attached, detached, or open parking— whether alley-loaded or not—is set well back from the front façade. o Table 1 Average Annual Market Potential For New And Existing Housing Units Distribution Of Annual Average Number Of Draw Area Households With The Potential To Move To The Northeast Study Area Each Year Over The Next Five Years Based On Housing Preferences And Income Levels The Northeast Study Area City of South Bend, St. Joseph County, Indiana City of South Bend, Balance of St. Joseph County; Regional Draw Area; Balance of U.S. Draw Areas Annual Number Of Households With The Potential To Rent/Purchase Within The City of South Bend 7,960 Annual Number Of Target Market Households With Potential To Rent/Purchase Within The Northeast Study Area 3,405 Average Annual Market Potential Below 30% to 60% to 80% to Above 30% AMI 60% AMI 80% AMI 100% AMI 100% AMI Subtotal Multi-Family For-Rent:227 191 118 102 462 1,100 Multi-Family For-Sale:76 62 36 30 137 341 Single-Family Attached For-Sale:86 71 43 36 172 408 Single-Family Detached For-Sale:274 241 164 147 730 1,556 Total:663 565 361 315 1,501 3,405 Percent:20.2% 16.6% 10.6% 9.3% 44.1%100.0% Note: For fiscal year 2020, the South Bend-Mishawaka, IN HUD FMR Area Median Family Income for a family of four is $70,800. SOURCE: Claritas, Inc.; Zimmerman/Volk Associates, Inc. Table 2 Average Annual Market Potential By Lifestage And Income Range Distribution Of Annual Average Number Of Draw Area Households With The Potential To Move To The Northeast Study Area Each Year Over The Next Five Years Based On Housing Preferences And Income Levels The Northeast Study Area City of South Bend, St. Joseph County, Indiana Below 30% to 60% to 80% to Above Total 30% AMI 60% AMI 80% AMI 100% AMI 100% AMI Number of Households:3,405 663 565 361 315 1,501 Empty Nesters & Retirees 22.9% 16.7% 20.9% 19.4% 19.0% 28.0% Traditional & Non-Traditional Families 41.9% 44.0% 37.9% 44.6% 44.1% 41.2% Younger Singles & Couples 35.2% 39.3% 41.2% 36.0% 36.9% 30.8% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Note: For fiscal year 2020, the South Bend-Mishawaka, IN HUD FMR Area Median Family Income for a family of four is $70,800. SOURCE: Claritas, Inc.; Zimmerman/Volk Associates, Inc. Table 3 Page 1 of 3 SOURCE: Zimmerman/Volk Associates, Inc. Summary Of Selected Rental Properties City of South Bend, St. Joseph County, Indiana January, 2021 Number Unit Reported Reported Rent per Property (Date Opened) of Units Type Base Rent Unit Size Sq. Ft. Additional Information Address/Walk Score . . . Downtown/East Bank . . . Central High & Stephenson Mill Apts 99 … Apartments …95% occupancy (1904)1br/1ba $750 to 590 to $1.07 to Controlled access, 330 West Colfax Avenue $1,145 1,069 $1.27 laundry facilities, 69 Walk Score 1br/1.5ba $1,070 957 $1.12 fitness center, and 2br/1ba $799 to 803 to $0.81 to pet friendly. $1,495 1,856 $1.00 2br/1.5ba $1,040 to 1,059 to $0.78 to $1,225 1,579 $0.98 2br/2ba $1,030 1,132 $0.91 to $1,505 1,500 $1.00 Studebaker Lofts 46 … Apartments …57% occupancy (Renovation 2017)1br/1ba $899 to 540 to $1.62 to Fitness center, 108 North Main Street $1,228 756 $1.66 business center. Bradley Company 2br/2ba $1,299 to 827 to $1.57 to 67 Walk Score $2,627 1,583 $1.66 3br/2ba $1,949 1,182 $1.65 The Ivy at Berlin Place 121 … Apartments …47% occupancy (2019)Studio/1ba $899 to 584 $1.54 to Fitness center, 415 South Lafayette Boulevard $1,015 $1.74 sundeck, clubhouse, 75 Walk Score 1br/1ba $985 to 790 $1.25 to business center, $1,350 $1.71 courtyard, and 2br/2ba $1,283 to 985 to $1.30 to recreation room. $1,720 1,033 $1.67 The LaSalle 67 … Apartments …94% occupancy (1921; 2016)1br/1ba $943 to 592 to $1.59 to Fitness center, 237 North Michigan Street $1,109 805 $1.38 community room, RealAmerica 2br/2ba $1,103 to 859 to $1.28 to game room, and 82 Walk Score $1,437 895 $1.61 key-fob entry. The Pointe at St. Joseph Apts 202 … Apartments …95% occupancy (1989)1br/1ba $970 to 700 to $1.39 to Swimming pool, 307 East LaSalle Avenue $1,225 784 $1.56 fitness center, Trilogy Residential Management 2br/1.5ba $1,165 to 1,020 $1.14 to clubhouse, 66 Walk Score $1,235 $1.21 community room, 2br/2ba $1,210 to 1,032 to $1.17 to business center, $1,355 1,151 $1.18 coffee bar. Table 3 Page 2 of 3 SOURCE: Zimmerman/Volk Associates, Inc. Summary Of Selected Rental Properties City of South Bend, St. Joseph County, Indiana January, 2021 Number Unit Reported Reported Rent per Property (Date Opened) of Units Type Base Rent Unit Size Sq. Ft. Additional Information Address/Walk Score . . . Downtown (continued) . . . Colfax at Hill 17 … Apartments …100% occupancy 525 East Colfax Avenue 1br/1ba $1,125 to 750 $1.50 to Bike storage Century Builders $1,175 $1.57 Waitlist. 75 Walk Score 2br/2ba $1,525 to 900 $1.69 to $1,650 $1.83 300 E Lasalle 144 … Apartments …In lease-up. (2021)Studio/1ba $1,200 to 536 to $2.24 to Rooftop pool, 300 East Lasalle Avenue $1,500 580 $2.59 clubhouse, Matthews LLC 1br/1ba $1,300 to 660 to $1.96 to greenhouse, 65 Walk Score $1,800 918 $1.97 beer garden, 2br/1ba $1,950 to 982 $1.99 to fire pits. $2,250 $2.29 2br/2ba $1,600 to 972 to $1.65 to $2,250 1,132 $1.99 3br/2ba $2,450 to 1,220 $2.01 to $3,050 $2.50 3br/3ba $2,400 to 1,460 to $1.64 to $3,050 1,490 $2.05 The Hibberd (2017)14 … Apartments …80% occupancy 321 South Main Street Studio/1ba $1,232 616 $2.00 Fitness center, Bradley Company 1br/1ba $1,316 643 to $1.87 to bike racks, 66 Walk Score $1,520 814 $2.05 BBQ/picnic area, 1br/1.5ba $1,638 to 870 $1.88 sundeck $1,655 $1.90 Ragamuffin Bakery 2br/2ba $2,420 1,307 $1.85 East Bank Flats 12 … Apartments …In lease-up. (2021)1br/1ba $1,300 to 710 $1.83 to Rooftop 215 Sycamore Street $1,500 $2.11 entertainment area. East Bank South Bend Development, LLC 2br/2ba $1,600 to 972 $1.65 to 65 Walk Score $1,900 $1.95 3br/3ba $2,400 to 1,460 $1.64 to $3,000 $2.05 345 Lincoln Way West 2 … Apartment …50% occupancy 65 Walk Score 2br/2ba $1,405 1,467 $0.96 Table 3 Page 3 of 3 SOURCE: Zimmerman/Volk Associates, Inc. Summary Of Selected Rental Properties City of South Bend, St. Joseph County, Indiana January, 2021 Number Unit Reported Reported Rent per Property (Date Opened) of Units Type Base Rent Unit Size Sq. Ft. Additional Information Address/Walk Score . . . Northeast . . . Aurum Apts 60 … Apartments …92% occupancy (2015)1br/1ba $980 596 to $1.64 Clubhouse, 825 East Sorin Street 602 concierge, laundry Brown Capital Group 2br/2ba $1,249 to 1,139 to $1.10 to facility, outdoor 60 Walk Score $1,646 1,299 $1.27 community lounge, bicycle service station. The Foundry North & South 718 … Apartments …97% occupancy (2009: 2019)Studio/1ba (S) $1,092 to 390 $2.80 to Swimming pool, 1233 North Eddy Street $1,157 $2.97 fitness center, Buckingham Companies 1br/1ba (S) $1,215 to 497 to $2.10 to club room, 67 Walk Score $2,023 962 $2.44 community room, 2br/2ba (S) $1,819 to 905 to $2.01 to conference center, $2,244 1,110 $2.02 study areas, game 1br/1ba (N) $1,543 to 625 to $2.17 to room and rooftop $1,842 850 $2.47 terrace 2br/2ba (N) $2,010 to 866 to $2.07 to $2,342 1,134 $2.32 3br/3ba (N) $2,260 to 1,159 to $1.95 to $3,340 1,528 $2.19 SOURCE: Zimmerman/Volk Associates, Inc. Table 4 Summary Of Selected For-Sale Multi-Family And Single-Family Attached Properties City of South Bend, St. Joseph County, Indiana January, 2021 Building Unit Unit Price Property (Year Built)Type Type Unit Price Unit Size Per Sq. Ft. Address/Walk Score . . . . Downtown/East Bank/Northeast . . . . The Village at Riverwalk (2017). . . . Units Currently For Sale. . . . Century Custom Builders DUPLEX 2br/3ba $395,000 2,830 $140 63 Walk Score TH 4br/3.5ba $435,000 2,280 $191 {end unit} Golden View THs (2019)6 TH . . . . Remaining Units . . . . North Notre Dame Avenue 4br/5.5ba $795,000 3,780 $210 70 Walk Score 4br/5.5ba $799,000 3,780 $211 4br/5.5ba $799,000 3,780 $211 5br/5.5ba $879,000 3,780 $233 Three Twenty at the Cascade 17 CO . . . . Remaining Units . . . . {2018}2br/3ba/study $941,621 2,466 $382 Wharf Partners, LLC 3br/3.5ba $1,002,985 2,699 $372 69 Walk Score 3br/3.5ba $1,067,397 2,699 $395 Traction HQ 2 CO 1130 South Bend Avenue 3br/3ba $1,125,000 2,395 $470 {2020}3br/3ba $1,375,000 2,438 $564 59 Walk Score . . . . East . . . . Keenan Court Flats (2019)12 CO 1033 Keenan Court 1br/1ba $169,900 607 $280 35 Walk Score 2br/2ba $234,500 1,097 $214 3br/3ba $267,500 1,314 $204 The Echoes (2019)26 "villas" Ironwood Circle 3br/2.5ba $499,900 2,072 $241 59 Walk Score 4br/3.5ba $563,761 3,034 $186 4br/3.5ba $599,308 3,034 $198 SOURCE: Zimmerman/Volk Associates, Inc. Table 5 Page 1 of 2 Summary Of Selected Single-Family Detached Properties New Construction City of South Bend, St. Joseph County, Indiana January, 2021 Unit Price Lot Property Type Unit Price Unit Size Per Sq. Ft.Size Builder/Walk Score …East Bank/Northeast The Village at Riverwalk . . . . Currently For Sale. . . . Notre Dame Avenue 4br/3ba $495,000 2,714 $182 1.2 ac Century Custom Builders Lot Prices: $65,000 to $80,000 (Notre Dame Avenue) 63 Walk score $90,000 (Northside Boulevard) Notre Dame South …New Construction Listings… Various addresses 3br/3ba $524,900 2,050 $256 Irish Custom Homes 3br/3ba $559,900 2,170 $258 60 Walk score 4br/4ba $574,900 2,580 $223 4br/4ba $614,900 2,170 $283 25 lots available …Northwest… Audubon Woods 50 du …New Construction Listings… Prescott Avenue South 3br/2ba $202,900 1,450 $140 0.21 ac. Irish Custom Homes 3br/2.5ba $289,900 1,800 $161 0.20 ac. 17 Walk score 3br/2ba $299,900 1,515 $198 0.23 ac. …Available Floorplans… 3br/2ba $289,900 to 1,450 to $190 to $339,900 1,788 $200 4br/3 or 4ba $299,900 2,300 $130 5br/3ba $314,900 to 2,480 to $127 to $384,900 2,990 $129 Lot Prices: $44,900 to $45,900 Jade Crossing 101 du …Available Floorplans… Jade Crossing Drive 3br/2ba $202,900 to 1,459 to $139 to Allen Edwin Homes $272,900 1,687 $162 20 Walk score 2br/1ba $222,900 1,252 $178 3br/2.5ba $223,900 to 1,516 to $122 to $291,900 2,393 $148 3br/1ba $240,900 1,526 $158 4br/2.5ba $239,900 to 1,830 to $124 to $249,900 2,022 $131 SOURCE: Zimmerman/Volk Associates, Inc. Table 5 Page 1 of 2 Summary Of Selected Single-Family Detached Properties New Construction City of South Bend, St. Joseph County, Indiana January, 2021 Unit Price Lot Property Type Unit Price Unit Size Per Sq. Ft.Size Builder/Walk Score …Northwest {continued} … Fox Run …New Construction Listings… Hound Trail 3br/3ba $229,000 1,430 $160 0.34 ac. Morrison Builders 4br/3ba $250,000 2,296 $109 0.27 ac. 7 Walk score 3br/2ba $265,000 1,550 $171 0.25 ac. 5br/2.5ba $272,900 2,731 $100 0.25 ac. West Pointe Estates 22 du …New Construction Listing… North Marshall Drive 3br/2ba $269,900 1,450 $186 0.29 ac. Irish Custom Homes Lot Price: $34,500 49 Walk score The Oaks 46 du …New Construction Listing… Garden Oak Drive 3br/2ba $299,000 1,515 $197 0.5 ac. Irish Custom Homes Lot Price: $49,500 20 Walk score Table 6 Page 1 of 3 Target Groups For New Multi-Family For Rent Northeast Study Area City of South Bend, St. Joseph County, Indiana . . . . . Number of Households . . . . . Empty Nesters 60% to 80% to Above Percent of & Retirees**80% AMI† 100% AMI† 100% AMI† Total Total The One Percenters 0 0 2 2 0.3% Old Money 0 0 1 1 0.1% The Social Register 0 0 1 1 0.1% Affluent Empty Nesters 0 0 2 2 0.3% Small-Town Patriarchs 0 0 5 5 0.7% Suburban Establishment 0 0 5 5 0.7% New Empty Nesters 0 0 3 3 0.4% Urban Establishment 1 1 13 15 2.2% Pillars of the Community 0 0 3 3 0.4% Traditional Couples 0 0 4 4 0.6% Second City Establishment 0 0 3 3 0.4% Multi-Ethnic Empty Nesters 0 0 4 4 0.6% Mainstream Empty Nesters 3 3 16 22 3.2% Middle-American Retirees 2 2 10 14 2.1% Cosmopolitan Couples 1 1 10 12 1.8% Blue-Collar Retirees 2 2 8 12 1.8% Middle-Class Move-Downs 1 0 1 2 0.3% Hometown Seniors 1 1 1 3 0.4% Second-City Seniors 5 4 11 20 2.9% Subtotal:16 14 103 133 19.5% 12.0% 10.5% 77.4% † For fiscal year 2020, the South Bend-Mishawaka, IN HUD FMR Area Median Family Income for a family of four is $70,800. **Predominantly one- and two-person households. SOURCE: Claritas, Inc.; Zimmerman/Volk Associates, Inc. Table 6 Page 2 of 3 Target Groups For New Multi-Family For Rent Northeast Study Area City of South Bend, St. Joseph County, Indiana . . . . . Number of Households . . . . . Traditional &60% to 80% to Above Percent of Non-Traditional Families††80% AMI† 100% AMI† 100% AMI† Total Total Corporate Establishment 0 0 3 3 0.4% Ex-Urban Elite 1 1 8 10 1.5% Nouveau Money 0 0 2 2 0.3% e-Type Families 0 0 1 1 0.1% Button-Down Families 1 1 3 5 0.7% Full-Nest Exurbanites 1 1 5 7 1.0% Unibox Transferees 1 1 5 7 1.0% Fiber-Optic Families 0 0 2 2 0.3% New Town Families 1 1 2 4 0.6% Late-Nest Suburbanites 2 2 9 13 1.9% Full-Nest Suburbanites 1 1 4 6 0.9% Small-Town Families 4 4 20 28 4.1% Traditional Families 1 1 6 8 1.2% Kids 'r' Us 3 3 11 17 2.5% Multi-Ethnic Families 2 2 7 11 1.6% Uptown Families 6 6 21 33 4.8% Multi-Cultural Families 0 0 1 1 0.1% Single-Parent Families 2 1 4 7 1.0% Inner-City Families 1 1 2 4 0.6% In-Town Families 8 6 14 28 4.1% New Amerian Strivers 11 7 16 34 5.0% Subtotal:46 39 146 231 33.9% † For fiscal year 2020, the South Bend-Mishawaka, IN HUD FMR Area Median Family Income for a family of four is $70,800. †† Predominantly three -to five-person households. SOURCE: Claritas, Inc.; Zimmerman/Volk Associates, Inc. Table 6 Page 3 of 3 Target Groups For New Multi-Family For Rent Northeast Study Area City of South Bend, St. Joseph County, Indiana . . . . . Number of Households . . . . . Younger 60% to 80% to Above Percent of Singles & Couples**80% AMI† 100% AMI† 100% AMI† Total Total New Power Couples 0 0 4 4 0.6% New Bohemians 2 2 24 28 4.1% Cosmopolitan Elite 0 0 3 3 0.4% Fast-Track Professionals 6 6 40 52 7.6% The VIPs 3 3 24 30 4.4% Suburban Achievers 3 2 9 14 2.1% Suburban Strivers 7 6 22 35 5.1% Downtown Couples 1 1 2 4 0.6% Small-City Singles 6 5 15 26 3.8% Second-City Strivers 8 7 22 37 5.4% Downtown Proud 2 2 8 12 1.8% Twentysomethings 13 11 34 58 8.5% Multi-Ethnic Singles 5 4 6 15 2.2% Subtotal:56 49 213 318 46.6% Total Households:118 102 462 682 100.0% Percent of Total:17.3% 15.0% 67.7% 100.0% † For fiscal year 2020, the South Bend-Mishawaka, IN HUD FMR Area Median Family Income for a family of four is $70,800. **Predominantly one- and two-person households. SOURCE: Claritas, Inc.; Zimmerman/Volk Associates, Inc. Table 7 Page 1 of 3 Target Groups For New Multi-Family For Sale Northeast Study Area City of South Bend, St. Joseph County, Indiana . . . . . Number of Households . . . . . Empty Nesters 80% to Above Percent of & Retirees**120% AMI† 120% AMI† Total Total The Social Register 0 1 1 0.6% Small-Town Patriarchs 0 2 2 1.2% Suburban Establishment 0 2 2 1.2% Urban Establishment 0 3 3 1.8% Second City Establishment 0 1 1 0.6% Multi-Ethnic Empty Nesters 0 1 1 0.6% Mainstream Empty Nesters 1 5 6 3.6% Middle-American Retirees 2 1 3 1.8% Cosmopolitan Couples 2 2 4 2.4% Blue-Collar Retirees 2 0 2 1.2% Middle-Class Move-Downs 1 0 1 0.6% Hometown Seniors 1 0 1 0.6% Second-City Seniors 5 2 7 4.2% Subtotal:14 20 34 20.4% † For fiscal year 2020, the South Bend-Mishawaka, IN HUD FMR Area Median Family Income for a family of four is $70,800. **Predominantly one- and two-person households. SOURCE: Claritas, Inc.; Zimmerman/Volk Associates, Inc. Table 7 Page 2 of 3 Target Groups For New Multi-Family For Sale Northeast Study Area City of South Bend, St. Joseph County, Indiana . . . . . Number of Households . . . . . Traditional &80% to Above Percent of Non-Traditional Families††120% AMI† 120% AMI† Total Total Corporate Establishment 0 1 1 0.6% Ex-Urban Elite 0 3 3 1.8% Nouveau Money 0 1 1 0.6% e-Type Families 0 1 1 0.6% Button-Down Families 0 1 1 0.6% Unibox Transferees 0 3 3 1.8% Late-Nest Suburbanites 1 2 3 1.8% Full-Nest Suburbanites 0 2 2 1.2% Small-Town Families 1 6 7 4.2% Traditional Families 0 2 2 1.2% Kids 'r' Us 1 1 2 1.2% Multi-Ethnic Families 0 2 2 1.2% Uptown Families 2 3 5 3.0% Single-Parent Families 1 0 1 0.6% Inner-City Families 1 0 1 0.6% In-Town Families 3 0 3 1.8% New Amerian Strivers 6 2 8 4.8% Subtotal:16 30 46 27.5% † For fiscal year 2020, the South Bend-Mishawaka, IN HUD FMR Area Median Family Income for a family of four is $70,800. ††Predominantly three -to five-person households. SOURCE: Claritas, Inc.; Zimmerman/Volk Associates, Inc. Table 7 Page 3 of 3 Target Groups For New Multi-Family For Sale Northeast Study Area City of South Bend, St. Joseph County, Indiana . . . . . Number of Households . . . . . Younger 80% to Above Percent of Singles & Couples**120% AMI† 120% AMI† Total Total New Power Couples 0 2 2 1.2% New Bohemians 1 5 6 3.6% Cosmopolitan Elite 0 2 2 1.2% Fast-Track Professionals 1 10 11 6.6% The VIPs 1 8 9 5.4% Suburban Achievers 1 1 2 1.2% Suburban Strivers 4 5 9 5.4% Downtown Couples 1 0 1 0.6% Small-City Singles 2 1 3 1.8% Second-City Strivers 7 5 12 7.2% Downtown Proud 4 2 6 3.6% Twentysomethings 10 10 20 12.0% Multi-Ethnic Singles 3 1 4 2.4% Subtotal:35 52 87 52.1% Total Households:65 102 167 100.0% Percent of Total:38.9% 61.1% 100.0% † For fiscal year 2020, the South Bend-Mishawaka, IN HUD FMR Area Median Family Income for a family of four is $70,800. **Predominantly one- and two-person households. SOURCE: Claritas, Inc.; Zimmerman/Volk Associates, Inc. Table 8 Page 1 of 3 Target Groups For New Single-Family Attached For Sale Northeast Study Area City of South Bend, St. Joseph County, Indiana . . . . . Number of Households . . . . . Empty Nesters 80% to Above Percent of & Retirees**120% AMI† 120% AMI† Total Total The One Percenters 0 1 1 0.5% The Social Register 0 1 1 0.5% Small-Town Patriarchs 0 2 2 1.0% Suburban Establishment 0 3 3 1.4% Urban Establishment 0 2 2 1.0% Pillars of the Community 0 1 1 0.5% Traditional Couples 0 2 2 1.0% Second City Establishment 0 2 2 1.0% Multi-Ethnic Empty Nesters 0 3 3 1.4% Mainstream Empty Nesters 3 6 9 4.3% Middle-American Retirees 2 3 5 2.4% Cosmopolitan Couples 1 1 2 1.0% Blue-Collar Retirees 2 2 4 1.9% Middle-Class Move-Downs 1 0 1 0.5% Second-City Seniors 3 2 5 2.4% Subtotal:12 31 43 20.7% † For fiscal year 2020, the South Bend-Mishawaka, IN HUD FMR Area Median Family Income for a family of four is $70,800. **Predominantly one- and two-person households. SOURCE: Claritas, Inc.; Zimmerman/Volk Associates, Inc. Table 8 Page 2 of 3 Target Groups For New Single-Family Attached For Sale Northeast Study Area City of South Bend, St. Joseph County, Indiana . . . . . Number of Households . . . . . Traditional &80% to Above Percent of Non-Traditional Families††120% AMI† 120% AMI† Total Total Corporate Establishment 0 1 1 0.5% Ex-Urban Elite 0 5 5 2.4% Nouveau Money 0 2 2 1.0% e-Type Families 0 1 1 0.5% Button-Down Families 0 3 3 1.4% Full-Nest Exurbanites 0 2 2 1.0% Unibox Transferees 0 4 4 1.9% New Town Families 0 3 3 1.4% Fiber-Optic Families 0 1 1 0.5% Late-Nest Suburbanites 1 3 4 1.9% Full-Nest Suburbanites 0 2 2 1.0% Small-Town Families 2 6 8 3.8% Traditional Families 1 1 2 1.0% Kids 'r' Us 1 5 6 2.9% Multi-Ethnic Families 1 2 3 1.4% Uptown Families 3 7 10 4.8% Multi-Cultural Families 1 0 1 0.5% Single-Parent Families 2 2 4 1.9% Inner-City Families 2 0 2 1.0% In-Town Families 5 2 7 3.4% New Amerian Strivers 8 2 10 4.8% Subtotal:27 54 81 38.9% † For fiscal year 2020, the South Bend-Mishawaka, IN HUD FMR Area Median Family Income for a family of four is $70,800. ††Predominantly three -to five-person households. SOURCE: Claritas, Inc.; Zimmerman/Volk Associates, Inc. Table 8 Page 3 of 3 Target Groups For New Single-Family Attached For Sale Northeast Study Area City of South Bend, St. Joseph County, Indiana . . . . . Number of Households . . . . . Younger 80% to Above Percent of Singles & Couples**120% AMI† 120% AMI† Total Total New Power Couples 0 2 2 1.0% New Bohemians 0 4 4 1.9% Cosmopolitan Elite 0 2 2 1.0% Fast-Track Professionals 1 4 5 2.4% The VIPs 1 6 7 3.4% Suburban Achievers 2 3 5 2.4% Suburban Strivers 6 8 14 6.7% Downtown Couples 2 1 3 1.4% Small-City Singles 4 4 8 3.8% Second-City Strivers 6 5 11 5.3% Downtown Proud 2 1 3 1.4% Twentysomethings 8 6 14 6.7% Multi-Ethnic Singles 5 1 6 2.9% Subtotal:37 47 84 40.4% Total Households:76 132 208 100.0% Percent of Total:36.5% 63.5% 100.0% † For fiscal year 2020, the South Bend-Mishawaka, IN HUD FMR Area Median Family Income for a family of four is $70,800. **Predominantly one- and two-person households. SOURCE: Claritas, Inc.; Zimmerman/Volk Associates, Inc. Table 9 Page 1 of 3 Target Groups For New Single-Family Detached For Sale Northeast Study Area City of South Bend, St. Joseph County, Indiana . . . . . Number of Households . . . . . Empty Nesters 80% to Above Percent of & Retirees**120% AMI† 120% AMI† Total Total The One Percenters 0 11 11 1.3% Old Money 0 4 4 0.5% The Social Register 0 2 2 0.2% Affluent Empty Nesters 1 9 10 1.1% Small-Town Patriarchs 1 20 21 2.4% Suburban Establishment 2 17 19 2.2% New Empty Nesters 1 17 18 2.1% Urban Establishment 0 3 3 0.3% Pillars of the Community 2 14 16 1.8% Traditional Couples 3 25 28 3.2% Second City Establishment 2 15 17 1.9% Multi-Ethnic Empty Nesters 1 2 3 0.3% Mainstream Empty Nesters 6 31 37 4.2% Middle-American Retirees 6 36 42 4.8% Cosmopolitan Couples 0 2 2 0.2% Blue-Collar Retirees 15 15 30 3.4% Middle-Class Move-Downs 4 3 7 0.8% Hometown Seniors 6 1 7 0.8% Second-City Seniors 7 3 10 1.1% Subtotal:57 230 287 32.7% † For fiscal year 2020, the South Bend-Mishawaka, IN HUD FMR Area Median Family Income for a family of four is $70,800. **Predominantly one- and two-person households. SOURCE: Claritas, Inc.; Zimmerman/Volk Associates, Inc. Table 9 Page 2 of 3 Target Groups For New Single-Family Detached For Sale Northeast Study Area City of South Bend, St. Joseph County, Indiana . . . . . Number of Households . . . . . Traditional &80% to Above Percent of Non-Traditional Families††120% AMI† 120% AMI† Total Total Corporate Establishment 0 10 10 1.1% Ex-Urban Elite 5 52 57 6.5% Nouveau Money 0 5 5 0.6% e-Type Families 0 2 2 0.2% Button-Down Families 3 26 29 3.3% Full-Nest Exurbanites 4 28 32 3.6% Unibox Transferees 2 11 13 1.5% New Town Families 4 25 29 3.3% Fiber-Optic Families 1 8 9 1.0% Late-Nest Suburbanites 2 10 12 1.4% Full-Nest Suburbanites 2 8 10 1.1% Small-Town Families 5 20 25 2.9% Traditional Families 6 25 31 3.5% Kids 'r' Us 8 29 37 4.2% Multi-Ethnic Families 5 17 22 2.5% Uptown Families 12 41 53 6.0% Multi-Cultural Families 1 1 2 0.2% Single-Parent Families 3 0 3 0.3% Inner-City Families 2 0 2 0.2% In-Town Families 38 12 50 5.7% New Amerian Strivers 10 3 13 1.5% Subtotal:113 333 446 50.9% † For fiscal year 2020, the South Bend-Mishawaka, IN HUD FMR Area Median Family Income for a family of four is $70,800. ††Predominantly three -to five-person households. SOURCE: Claritas, Inc.; Zimmerman/Volk Associates, Inc. Table 9 Page 3 of 3 Target Groups For New Single-Family Detached For Sale Northeast Study Area City of South Bend, St. Joseph County, Indiana . . . . . Number of Households . . . . . Younger 80% to Above Percent of Singles & Couples**120% AMI† 120% AMI† Total Total New Power Couples 0 2 2 0.2% New Bohemians 0 1 1 0.1% Cosmopolitan Elite 0 3 3 0.3% Fast-Track Professionals 0 3 3 0.3% The VIPs 1 8 9 1.0% Suburban Achievers 14 13 27 3.1% Suburban Strivers 12 11 23 2.6% Downtown Couples 2 1 3 0.3% Small-City Singles 20 26 46 5.2% Second-City Strivers 4 4 8 0.9% Downtown Proud 2 0 2 0.2% Twentysomethings 6 3 9 1.0% Multi-Ethnic Singles 6 2 8 0.9% Subtotal:67 77 144 16.4% Total Households:237 640 877 100.0% Percent of Total:27.0% 73.0% 100.0% † For fiscal year 2020, the South Bend-Mishawaka, IN HUD FMR Area Median Family Income for a family of four is $70,800. **Predominantly one- and two-person households. SOURCE: Claritas, Inc.; Zimmerman/Volk Associates, Inc. Table 10 Page 1 of 4 Optimum Market Position: Workforce and Market-Rate Units Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 Number of Percent Base Rent/Price Base Unit Base Rent/Price Annual Market Households Housing Type Mix Range* Size Range Per Sq. Ft.*Capture Households by Income 682 Multi-Family For Rent 68 to 82 220 Households With Incomes Between 60% and 100% AMI 22 26 462 Households With Incomes at 100% and up 46 56 . . . . . Workforce (60% to 100% AMI) . . . . . Studio/1ba 30%$750 to 400 to $1.88 to $1,100 550 $2.00 1br/1ba 30%$850 to 500 to $1.70 to $1,275 650 $1.96 2br/1ba 25%$1,150 to 700 to $1.64 to $1,600 850 $1.88 2br/2ba 15%$1,350 to 900 to $1.50 to $1,750 1,000 $1.75 Weighted Averages: $1,168 650 $1.80 . . . . . Market-Rate (100% AMI and up) . . . . . Studio/1ba 25%$1,500 to 500 to $2.75 to $1,650 600 $3.00 1br/1ba 30%$1,750 to 650 to $2.47 to $2,100 850 $2.69 2br/2ba 25%$1,850 to 950 to $1.95 to $2,500 1,100 $2.27 3br/2ba 20%$2,600 to 1,200 to $1.93 to $2,800 1,450 $2.17 Weighted Averages: $2,004 851 $2.36 NOTE:For fiscal year 2020, the South Bend-Mishawaka, IN HUD MFR Area Median Family Income for a family of four is $70,800. NOTE:Base rents/prices in year 2021 dollars and exclude floor, view premiums, options, or upgrades. SOURCE: Zimmerman/Volk Associates, Inc. Table 10 Page 2 of 4 Optimum Market Position: Workforce and Market-Rate Units Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 Number of Percent Base Rent/Price Base Unit Base Rent/Price Annual Market Households Housing Type Mix Range* Size Range Per Sq. Ft.*Capture Households by Income 167 Multi-Family For-Sale 15 to 17 65 Households With Incomes Between 80% and 120% AMI 6 7 102 Households With Incomes Above 120% AMI 9 10 . . . . . Workforce (80% to 120% AMI) . . . . . 1br/1ba 40% $195,000 to 800 to $244 to $250,000 950 $263 2br/1ba 25% $235,000 to 1,000 to $235 to $265,000 1,100 $241 2br/2ba 35% $275,000 to 1,150 to $239 to $300,000 1,250 $240 Weighted Averages: $251,200 1,033 $243 . . . . . Market-Rate (120% AMI and up) . . . . . 1br/1ba 20% $325,000 to 900 to $361 to $350,000 950 $368 2br/1.5ba 25% $375,000 to 1,100 to $333 to $400,000 1,200 $341 2br/2ba 30% $435,000 to 1,350 to $317 to $475,000 1,500 $322 3br/2ba 25% $525,000 to 1,700 to $300 to $750,000 2,500 $309 Weighted Averages: $471,550 1,469 $321 NOTE:For fiscal year 2020, the South Bend-Mishawaka, IN HUD MFR Area Median Family Income for a family of four is $70,800. NOTE:Base rents/prices in year 2021 dollars and exclude floor, view premiums, options, or upgrades. SOURCE: Zimmerman/Volk Associates, Inc. Table 10 Page 3 of 4 Optimum Market Position: Workforce and Market-Rate Units Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 Number of Percent Base Rent/Price Base Unit Base Rent/Price Annual Market Households Housing Type Mix Range*Size Range Per Sq. Ft.*Capture Households by Income 208 Single-Family Attached For-Sale 17 to 21 76 Households With Incomes Between 80% and 120% AMI 6 8 132 Households With Incomes Above 120% AMI 11 13 . . . . . Workforce (80% to 120% AMI) . . . . . 2br/1.5ba 25% $225,000 to 1,000 to $225 to $300,000 1,200 $250 2br/2.5ba 45% $265,000 to 1,250 to $212 to $325,000 1,350 $241 3br/2.5ba 30% $300,000 to 1,300 to $212 to $350,000 1,650 $231 Weighted Averages: $291,950 1,281 $228 . . . . . Market-Rate (120% AMI and up) . . . . . 2br/2.5ba 25% $425,000 to 1,500 to $277 to $485,000 1,750 $283 3br/2.5ba 30% $515,000 to 1,850 to $269 to $565,000 2,100 $278 3br/3.5ba 25% $595,000 to 2,200 to $260 to $650,000 2,500 $270 4br/3.5ba 20% $700,000 to 2,650 to $258 to $800,000 3,100 $264 Weighted Averages: $610,300 2,284 $267 NOTE:For fiscal year 2020, the South Bend-Mishawaka, IN HUD MFR Area Median Family Income for a family of four is $70,800. NOTE:Base rents/prices in year 2021 dollars and exclude floor, view premiums, options, or upgrades. SOURCE: Zimmerman/Volk Associates, Inc. Table 10 Page 4 of 4 Optimum Market Position: Workforce and Market-Rate Units Northeast Study Area City of South Bend, St. Joseph County, Indiana February, 2021 Number of Percent Base Rent/Price Base Unit Base Rent/Price Annual Market Households Housing Type Mix Range*Size Range Per Sq. Ft.*Capture Households by Income 877 Single-Family Detached For-Sale 22 to 30 237 Households With Incomes Between 80% and 120% AMI 6 8 640 Households With Incomes Above 120% AMI 16 22 . . . . . Workforce (80% to 120% AMI) . . . . . 3br/2ba 30% $275,000 to 1,300 to $212 to $350,000 1,500 $233 3br/2.5ba 40% $375,000 to 1,700 to $208 to $395,000 1,900 $221 3br/2.5ba 30% $400,000 to 2,000 to $185 to $425,000 2,300 $200 Weighted Averages: $367,400 1,763 $208 . . . . . Market-Rate (120% AMI and up) . . . . . 3br/3.5ba 40% $500,000 to 1,900 to $250 to $550,000 2,200 $263 4br/3.5ba 30% $600,000 to 2,400 to $245 to $675,000 2,750 $250 4br/4.5ba 30% $725,000 to 3,000 to $239 to $825,000 3,450 $242 Weighted Averages: $645,882 2,617 $247 NOTE:For fiscal year 2020, the South Bend-Mishawaka, IN HUD MFR Area Median Family Income for a family of four is $70,800. NOTE:Base rents/prices in year 2021 dollars and exclude floor, view premiums, options, or upgrades. SOURCE: Zimmerman/Volk Associates, Inc.