UPDATE RESIDENTIAL MARKET POTENTIAL for Greater Downtown Detroit City of Detroit Wayne County, Michigan July, 2014 Conducted by On Behalf of the ZIMMERMAN/VOLK ASSOCIATES, INC. Downtown Detroit Partnership P.O. Box 4907 600 Renaissance Center, #1740 Clinton, New Jersey 08809 Detroit, Michigan 48243 ZIMMERMAN/VOLK ASSOCIATES, INC. P.O. Box 4907 Clinton, New Jersey 08809 908 735-6336 www.ZVA.cc •
[email protected] Research & Strategic Analysis STUDY CONTENTS Update: Residential Market Potential Greater Downtown Detroit 1 Introduction 1 Market Potential 3 Where are the potential renters and buyers of new and existing housing units in the City of Detroit likely to move from? 3 Market Potential for Greater Downtown Detroit 5 Where are the potential renters and buyers of new and existing housing units in Greater Downtown Detroit likely to move from? 5 What are their housing preferences in aggregate? 6 How many households have the potential to rent or purchase new or existing dwelling units within Greater Downtown Detroit each years? 6 —Rental Distribution— 8 —For-Sale Distribution— 9 Target Market Analysis 10 Who is the potential market? 11 The Current Context 14 What are the alternatives? 14 —Multi-Family Rental Properties— 14 —Multi-Family and Single-Family Attached For-Sale Properties— 18 Market Capture: Greater Downtown Detroit and the Core Downtown (Central Business District) 21 How fast will the units lease or sell? 21 Market-Rate Rent and Price Ranges: Downtown Detroit (Central Business District) 25 What is the market currently able to pay?