MARKET SUMMARY

A neighborhood residential market survey was conducted for the project from November, 2018-March, 2019. Over 70 surveys were collected from neighborhood residents representing nearly 10% of overall households who live in the project area. Two surveys were distributed: one to renters and one to homeowners. Summaries of each are below:

Homeowner Survey: Surveys were collected from people who have lived in their homes from as far back as 1942. The largest number of surveys were returned from people who moved to the neighborhood since 2013, reflecting a growing interest in the neighborhood. Affordability and community were cited as the primary reasons for moving to the neighborhood. 40% of sales carried a mortgage while another 40% were purchased with cash. The median sales price was less than $20,000 with the majority of sales for less than $40,000. After purchase, homeowners have invested significant amount into the renovation of their homes. The median total investment including purchase plus renovation expenses was between $40,000$80,000. Interviews with local realtors revealed that some 2019 sales prices have exceeded $125,000, showing the recent rise in prices.

Recommendation: Target purchase plus renovation costs between $80,000-$120,000 for resale properties.

Renter survey: All survey respondents have lived in their rental unit less than 10 years with the median less than one year and the majority less than three years. 70% of renters live in single family homes. Most renters cited affordability and location as the reasons why they chose their home. Rents ranged from less than $200/month up to $1,400/month. The median rent was between $600-$800/month. 77% of renters said they had not experienced a rent increase in the last three years. 92% of renters said their rent was either a bargain or just right, indicating that current rental rates are affordable for most residents.

Recommendation: Target rents between $600-$800/month to maintain affordability in the neighborhood.