Housing Needs Assessment — Residential Market Study

Zimmerman Volk & Associates (ZVA) conducted an Analysis of Residential Market Potential for the Western Heights Choice Neighborhood. This report analyzed the current market conditions, and the potential to draw new residents from around the Knoxville and Knox County area. The study determined that roughly 1/3 each of the following groups: » Younger singles and childless couples » Empty nesters and retirees » Family-oriented households In comparing 23 Knoxville rental properties, there is a market premium if a Walk Score of 70 or above can be achieved. Rents range between: » $659 and $1,250/month for studios » $750 and $1,844/month for one-bedrooms » $765 and $2,300/month for two-bedrooms » $882 and $2,250/month for three-bedrooms

An Analysis of Residential Market Potential

The Western Heights Choice Neighborhood Study Area City of Knoxville, Knox County, Tennessee May, 2021 Conducted by ZIMMERMAN/VOLK ASSOCIATES, INC. P.O. Box 4907 Clinton, New Jersey 08809 Draft

Amenities in comparable multi-family housing include:

» Small fitness center » Small business center » Outdoor and indoor community gathering spaces › Wi-fi cafe › Bar and kitchen › Green space › Pocket parks › Children’s play equipment › Dog park For the new rental housing, market-rate units at 80% or above AMI would be affordable to 35.8% of the annual potential rental market in that range. For homeownership, the potential market indicates that potential buyers can afford a range of homes from less than $125,000 to above $225,000.

In total, there would be 389 potential renters annually with incomes above 80% AMI and 167 potential home buyers annually with incomes above 100% AMI. Therefore, ZVA estimates the annual absorption of 31 to 39 new market-rate rental units each year for 5 years.