Westside Atlanta Residential Market Potential

transcript

An Analysis of Residential Market Potential

Westside Atlanta Study Area

ZIMMERMAN/VOLK ASSOCIATES, INC.

Westside AtlantaStudy Area

Understanding:

The legacy and history of the Westside neighborhoods.

The housing preferences and economic capabilities of the people who live here and the people who might move here.

New housing that would help to diversify the housing stock.

Each neighborhood is unique, but there are common issues.

When you tug at a single thing in nature,you find it attached to the rest of the world.

--John Muir

A Decade After the Crash

Credit Still Remains Tight(both buildersand buyers)

Target Market Methodology

Market Potential, Not Demand.

How many are likely to move to the Study Area?Who are the potential renters and buyers?What are their housing preferences?What kind of housing is currently available?How much can the market afford?How fast will they rent or buy the new units?

Where will the potential market be moving from?

Population: 19,175Households: 6,020

1 & 2-Person Households: 75%Median Household Income: $28,300Households Below $25,000: 46%

Median Housing Value: $116,500Owners/Renters: 26/74%

Study Area Overview 2016

Study Area Householdsby Lifestage

Traditional and Non-Traditional Families: 52%

Empty Nesters and Retirees: 25%

Younger Singles and Couples: 23%

Where will residents of new unitsin the Study Area be moving from?

The Westside Study Area: 24%

Balance of Atlanta/Fulton County: 30%

Regional Draw Area: 19%

Balance of the U.S.: 27%

How many householdsrepresent the market

for new mixed-income housingin the Study Area?

4,135 households per year

Zimmerman/Volk Associates, Inc.

Younger Singles & Couples 64%

Traditional & Non-Traditional Families 30%

Empty Nesters & Retirees 6%

Who are the potentialrenters and buyers?

What kind of housingis currently available?

General rents and pricesin the market area.

General Rent Ranges$450 to $3,000 per month

575 sf (1br) to 2,400 sf (3br)($0.79 to $2.62 psf)

MAGNOLIA PARKTHE POINT AT WESTSIDE

THE RESIDENCES AT CITY CENTER

General Price Ranges: Resales$18,000 to $300,000

730 sf (1br) to 2,304 sf (5br)($11 to $180 psf)

THE WASHINGTON

$90,000

$70,000

Do they want to rent or own, and what type of housing?

Rental Lofts/Apartments: 63.8% For-Sale Condominiums: 12.5% For-Sale Townhouses: 11.5%

For-Sale Urban Houses: 12.2%

Atlanta MSAarea median family income (AMI)

for a family of four

$67,500

HUD AMI Breakdown

Household 30% 80%One-person $14,200

$37,800Two-person $16,200

$43,200Three-person $20,160

$48,600Four-person $24,300

$54,000Five-person $28,440

$58,350

Monthly RentsBased on AMI Breakdown

Household 30% 80%One-person $355 $945Two-person $405 $1,080Three-person $504 $1,215Four-person $606 $1,350Five-person $711 $1,460

944 Annual Potential Renter HouseholdsWhat are their income ranges?

525 Annual Potential Condominium BuyersWhat are their income ranges?

485 Annual Potential Townhouse BuyersWhat are their income ranges?

510 Annual Potential Urban House BuyersWhat are their income ranges?

How fast will the target householdsrent or buy new mixed-income housing

in the Westside Study Area?

Rental Units:15 percent capture rate

For-Sale Units:8.5 percent capture rate

Annual Capture of Market Potential:530 Mixed-Income Units per Year

Over the Next Five Years

Rental Apartments: 401 units

For-Sale Condominiums: 45 units

For-Sale Townhouses: 41 units

For-Sale Urban Houses: 43 units

Annual Market Capture:401 Mixed-Income Rental Units

Market-Rate: 182 units

Affordable/Workforce: 128 units

Low-Income/Public Housing: 91 units

Annual Market Capture:45 Mixed-Income Condominium Units

Annual Market Capture:41 Mixed-Income Townhouse Units

Annual Market Capture:43 Mixed-Income Detached Houses

Next Steps

Target Market

2-person household 25 to 34 years old

$25,000 to $75,000annual income

Couple Nº 1

Dual-income,save her salary.

Renters.

Currently live in city.Goal: Buy a house.

Couple Nº 2

Dual-income,dual-career.

Renters.

Live in city.Goal: Stay in city,no maintenance.

Couple Nº 3

Dual-income,dual-career.

Renters.

Live in cityGoal: Stay in city,

buy acountry place.

Couple Nº 4

Single income,single mom.

Renters.

Live in city.Goal: Buy a

townhouse near the city.

Couple Nº 5

Single income,older sibling/

younger sibling.Owners.

Live in city.Goal: Buy a house

in the suburbs.

Couple Nº 6

Trust fund income,he’s an actor;

she’s a painter.Renters.

Live in cityGoal: Open their own

artisanal store.

Westside Atlanta Residential Market Potential

Real Estate