The Residential Market Potential of
Downtown Lake Charles
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The Downtown Study Area Central Business District Lakefront Development Area North: Union Pacific Railroad Tracks East: Ryan and Hodges Streets South: Python Coulee West: Lake Charles Zimmerman/Volk Zimmerman/Volk Associates, Associates, Inc. Inc.
Downtown Assets Historic buildings. Employment. Walkability. Location and Access.
LAKE CHARLES! Zimmerman/Volk Zimmerman/Volk Associates, Associates, Inc. Inc.
Target Market Methodology Market potential, Not market demand.
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Where does the potential market live now? How many are likely to move to the Study Area? Who are they? What are their housing preferences? What kind of housing is currently available? How much is the market likely to pay? How fast will they rent or buy the dwelling units? Zimmerman/Volk Zimmerman/Volk Associates, Associates, Inc. Inc.
Where Does The Potential Market Live Now? Migration Analysis
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The Draw Areas Downtown Lake Charles City of Lake Charles: Calcasieu Parish: Regional Draw Area: New Orleans Draw Area: Houston Draw Area: Nation (LA, TX):
29% 14% 2% 4% 9% 42%
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How Many Are Likely To Move To The Downtown Study Area?
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Annual Market Potential Downtown—1,010 households (Citywide—4,300 households)
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Who Are The Target Households?
Target Market Analysis
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Younger Singles & Couples: 64%
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Empty Nesters & Retirees: 28%
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The Baby Boom 82 Million 1946-1964
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The Millennials 78 Million 1977-1996
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Two Generations Converge
2004-2024 Boomers Move Down/Move Back Millennials Move Out/Move In
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Convergence: 2004 to 2024 45
Millions 44 43 42 41 40 39 20 to 29 38 50 to 59 37 36
Basic demographic support for significant increases in downtown housing
35 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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The two largest generations are mostly one- and two-person households.
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59% of all U.S. households contain either one or two persons; 64% in Lake Charles. Zimmerman/Volk Zimmerman/Volk Associates, Associates, Inc. Inc.
Traditional & Non-Traditional Families: 8%
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Married couples with children – now 21.6 percent of American households; Lake Charles 18.9%. Zimmerman/Volk Zimmerman/Volk Associates, Associates, Inc. Inc.
Traditional (one-worker) family – less than 10 percent of American households.
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9 percent of home purchases made by single men.
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22 percent of home purchases made by single women.
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32 percent of home purchases made by couples.
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What Are The Housing Preferences Of The Target Households?
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61% of all U.S. housing units are single-family detached; 70% in Lake Charles. Zimmerman/Volk Zimmerman/Volk Associates, Associates, Inc. Inc.
Downtown Housing Preferences • Rental Lofts/Apartments: 45% • For-Sale Lofts/Apartments: 30% • For-Sale Townhouses: 25%
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What Are General Rent And Price Ranges In The Lake Charles Market Area?
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General Rent Ranges $500 to $1,300 per month 550 sf (1br) to 1,300 sf (3br) ($0.60 to $1.20 psf)
General Price Ranges $200,000 to $550,000 1,300 sf (1br) to 3,500 sf (4br) ($95 to $150 psf) Zimmerman/Volk Zimmerman/Volk Associates, Associates, Inc. Inc.
What Are the Target Households Willing To Pay To Live In Downtown?
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Studios, Lofts and Apartments Monthly rents from $600 to $1,450 Units containing between 500 and 1,250 sq. ft. ($1.00 to $1.32 psf)
Studios, Lofts and Apartments Base prices from $75,000 to $350,000+ Units containing between 600 and 2,250+ sq. ft. ($110 to $156+ psf) Zimmerman/Volk Zimmerman/Volk Associates, Associates, Inc. Inc.
Townhouses Base prices from $145,000 to $295,000 Units containing between 1,100 and 2,300 sq. ft. ($128 to $130 psf) Zimmerman/Volk Zimmerman/Volk Associates, Associates, Inc. Inc.
How Fast Will The Target Households Rent Or Buy New Downtown Housing?
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Capture of Market Potential 228 Units Per Year Over the Next Five Years Rental Lofts/Apartments: 115 units For-Sale Lofts/Apartments: 75 units For-Sale Townhouses/Live-Work: 38 units
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Downtown Challenges Neglected/vacant properties. High development costs. Lack of marketing. Isolation of the lakefront.
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Downtown Housing Strategies •Preserve the built environment. •Support mixed-use development. •Develop appropriate programs and policies.
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Criteria for Successful Downtown Housing Initiatives
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1. Location: Evaluate Buildings/Areas For Residential Development
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The Core Downtown • Lofts on upper floors: Ryan, Division, Broad Streets. • Downtown artist housing. • Mixed-use development on parking lots.
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Lakefront Development Area • Hotel/condominium tower. • Urban townhouses, mansion apartments, courtyard apartments.
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2. Design: Ensure Appropriate Urban Design
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Urban. With buildings and Zimmerman/Volk front doors that face the street . . . . .Associates, . Inc. Zimmerman/Volk Associates, Inc.
Not suburban. . . . . .not parking lots and garage doors. Zimmerman/Volk Zimmerman/Volk Associates, Associates, Inc. Inc.
3. Marketing: Market and Monitor The Downtown
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Market Downtown!
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