Market Study Guide

Market Study Guide - MARKET STUDY GUIDE I. Data Sources 1....

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MARKET STUDY GUIDE I. Data Sources 1. Acceptable data sources include: i.The 2000 Census ii.Data from state or local planning bodies iii.Data purchased commercially from organizations such CACI or National Planning Data Service II. Minimum Standards The market study must be organized in the order of this guide and the market study checklist and must include all the following items. 1. Problem Definition: Define the problem the market study seeks to answer, specifically addressing the population to be served. The problem definition and market study must specifically address the population being served. In almost all cases, the problem will be whether sufficient potential demand exists for the development as proposed. Potential demand is the pool of households that are income qualified (household income does not exceed applicable program limits) and can afford the proposed development’s rents. For example, if the proposed development will serve 100% frail elderly it is inappropriate for the study to address the entire elderly population. The study must target the analysis to the frail elderly population, the potential pool of residents. The study must also segment the frail elderly pool into those households that are income-qualified and can afford the proposed rents. 2. Market Area Definition : The market area is defined as the area in which similar properties compete with the subject property for tenants. A factual basis for defining the boundaries of the market area must be established. Primary and secondary market areas may be delineated as subsets of the entire market area but a valid basis must be demonstrated for the decision to include a secondary market and for the geographical areas selected as primary and secondary. If a secondary market is included in the study, appropriate adjustments must be made in the reconciliation of supply and demand to reflect the development’s decreased likelihood of attracting households from the secondary market area. Provide a map that identifies the development site and both the primary and secondary market area for the proposed development. 3. Physical/Location Analysis Include a description of the development site, development improvements, development amenities, units, and unit amenities. The description may be based upon a review of the development, the developer’s description, or taken from the blueprints. The study should describe those attributes and amenities that set the development apart from its competitors and that will enhance or detract from the development’s marketability. It is particularly important to compare the development to competing developments and market preferences. For example, it is not enough to know that the development has one-bedroom units with a given set of amenities. The Page 1 of 7
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study must indicate whether those amenities are above standard, standard or substandard in the market. Compare the proposed development’s positive or negative attributes to competing developments already built or in the pipeline,
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Market Study Guide - MARKET STUDY GUIDE I. Data Sources 1....

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