sample housing market analysis Projects
housing master plan
The City of Alexandria faces a severe shortage of affordable housing, largely due to the sharply increasing real estate costs and regional development pressures over the past decade. The lack of affordable choice in Alexandria’s housing market threatens the community’s diversity, as well as its long term economic sustainability. As such, the City of Alexandria hired RKG Associates to perform a citywide Housing Master Plan to establish a comprehensive vision to guide future development. The plan was created with the goals of preserving and enhancing affordable housing opportunities, community diversity, and economic sustainability. RKG Associates, Inc. performed a supply and demand assessment for the City as a whole, as well as fifteen individual neighborhoods within the City. In addition to assessing the supply and demand for housing, the Consultant created a model which allows the City to test various iterations of developer-proposed programs to determine the financial feasibility of the developers’ claims as well as the potential impact to the City’s bottom line. RKG identified the City’s gaps in the Alexandria housing market and created a detailed implementation plan for how the City can help close these gaps in providing affordable housing for its residents. The consultant also provided the City with a highly customizable tool for assessing future development financial feasibility.
green impact zone
Kansas City, Missouri
RKG Associates, Inc. was retained in 2011 to provide real estate market analysis and housing development services in support of the redevelopment of a 150-block urban area of Kansas City known as the Green Impact Zone. The Green Impact Zone initiative is an effort to concentrate resources — with funding, coordination, and public and private partnerships. The Green Impact Zone has experienced severe abandonment and economic decline over the past four decades. The zone has experienced extreme property abandonment, with about 25 percent of its properties in vacant lots and another one-sixth in vacant structures. Unemployment in Kansas City, Mo., is now 11.7 percent citywide and estimated to be as much as 50 percent in parts of this zone. Fewer than half the homes are owner-occupied. Almost 20 percent of all mortgages were delinquent over the last two years. With over $100 million in federal and private funding targeted for the Zone, new housing development is necessary to bring residents back to the City’s downtown neighborhoods. RKG Associates is working with a national housing development services company to prepare a residential market study, housing pricing analysis, and demand projections for the study area. RKG has just begun this assignment and will make recommendations that will guide redevelopment activities, such as: where are the best parcel locations for housing redevelopment to occur; what level of future housing demand will occur at price points between 30% and 80% of adjusted median income; and what mix of housing is required to improve the balance of ownership and rental housing in some neighborhoods?
residential development strategy (Sas)
RKG Associates provided strategic market research and planning services to a residential development company looking to identify long-range development opportunities. RKG analyzed demographic, household formation, and income trends within the New River Valley Region of Virginia. In addition, the firm examined potential land development sites within the developer’s. The developer, SAS Construction/Chase Management, was approaching build-out on several on-going residential projects and needed to identify new properties for future growth. In addition, the firm was seeking a long-term development strategy that responded to prevailing market needs and price points. RKG’s research provided a strategic, long-range operational plan for the developer, the first in the company’s history. The plan, based on sound market research, positioned the company to pursue up to 10 different potential residential sites within the firm’s primary market. RKG’s research confirmed a gap in the new construction market for houses in the $180,000 to $225,000 range. With competing developers building exclusively to the high end of the market, the strategy identified target price points and housing types for different submarket areas served by the developer. Since completion of the plan, SAS has pursued each of the 10 residential development opportunities identified by RKG.
city-wide housing market research
The City of Pittsburgh has been experiencing steady household and population decline for more than 30 years. As a result, the City’s housing market has been adversely impacted, with vacancy reaching more than 12% citywide. This phenomenon has also caused the private sector to compete directly with the Housing Authority of the City of Pittsburgh’s (HACP) for tenants. The HACP retained the services of RKG Associates to prepare a comprehensive residential market study and strategic action plan to direct the Housing Authority’s public housing investment programs over the next ten years.
downtown housing market study
RKG has completed two planning projects in Middletown over the past three years including a Downtown Market Housing Plan. RKG’s role in this project was to analyze current and projected housing market supply and demand conditions the downtown, city and market region. Based on the market conditions and historic development trends, RKG developed strategies to encourage the development of market rate units in the downtown. The City will use this information as a planning and policy tool, as well as a tool to solicit residential developers.
residential market study
Kansas City, Kansas
RKG Associates conducted a county-wide housing market study for the combined governmental entity of Wyandotte County and Kansas City (WYCO-KCK). RKG was retained by the KCK Housing Authority to analyze the potential demand for replacing a 1960s low income housing project containing 200 units with new mixed income housing in the county’s urban core. This central city area has been in decline for several decades largely due to the county’s land use policies which, to a large extent, have encouraged investment in previously undeveloped portions of the county. Although the county has pursued an aggressive demolition policy to remove blight in the urban core it continues to struggle with poor housing conditions occupied predominantly by low income households. In order to determine potential demand for mixed income housing in the central city, RKG examined real estate transactions and development projects over the past decade within the county. Data analysis was conducted for several concentric study areas using GIS in conjunction with the county’s assessment database. Of particular importance was the review of “pipeline” projects to determine how developers and financial institutions viewed investment potential in this portion of the county. Another component of the analysis involved compiling information regarding the county’s transit system to determine if its routing and scheduling could be used to support new mixed income housing since availability of transit is an important service for lower income households. Overall, the study concluded that market demand was relatively low for the proposed project and that sufficient housing was already approved or planned to support demand for the targeted income groups.