City of Mesquite Downtown Market Analysis CITY OF MESQUITE DOWNTOWN MARKET ANALYSIS PREPARED FOR : CITY OF MESQUITE M AY 2017 1 City of Mesquite Downtown Market Analysis CITY OF MESQUITE DOWNTOWN MARKET ANALYSIS MAY 2017 Prepared for: City of Mesquite 1515 N Galloway Mesquite, TX 75149 Prepared by: CDS Community Development Strategies 1001 S. Dairy Ashford, Suite 450 Houston, TX 77077 (713) 465-8866 www.cdsmr.com 2 City of Mesquite Downtown Market Analysis TABLE OF CONTENTS Introduction ................................................................................................................................................... 8 CDS Company Bio .................................................................................................................................................................. 8 The Purpose of this Study ..................................................................................................................................................... 8 Executive Summary – Study Area Potential For Development .......................................................................... 8 Single Family Housing Market ....................................................................................................................................... 8 Recommendations for the Downtown Study Area........................................................................................................ 9 Multifamily Market ........................................................................................................................................................ 9 Recommendations for the Downtown Study Area........................................................................................................ 9 Retail Market ............................................................................................................................................................... 10 Recommendations for the Downtown Study Area...................................................................................................... 10 Office Market............................................................................................................................................................... 10 Recommendations for the Downtown Study Area...................................................................................................... 10 Industrial Market ......................................................................................................................................................... 11 Recommendations for the Downtown Study Area...................................................................................................... 11 Mesquite, Texas ........................................................................................................................................... 12 The Study Area .................................................................................................................................................................... 14 Downtown Mesquite ................................................................................................................................................... 14 Study Area Fiscal Year 2016 Sales Tax Information ..................................................................................................... 18 Study Area 2016 Property Taxes ................................................................................................................................. 19 Competitive Market Area (CMA) ................................................................................................................................. 20 Demographic Analysis ........................................................................................................................................................ 20 Demographic Overview ............................................................................................................................................... 20 Population and Income Trends ................................................................................................................................... 22 Population By Age ....................................................................................................................................................... 23 School District Enrollment and Educational Attainment .................................................................................................... 23 Employment Trends ............................................................................................................................................................ 24 Unemployment Rates .................................................................................................................................................. 24 Employment and Labor Force ..................................................................................................................................... 25 Employment Trends by Industries Tracked ................................................................................................................. 25 Wage Trends ................................................................................................................................................................ 26 Diverse Local Employment .......................................................................................................................................... 28 Commuting Patterns ................................................................................................................................................... 30 NCTCOG Projections............................................................................................................................................................ 31 Housing Market ........................................................................................................................................... 32 Housing and Household Trends .......................................................................................................................................... 32 Housing Type Trends ................................................................................................................................................... 32 Age of Existing Housing ............................................................................................................................................... 32 Housing Occupancy Trends ......................................................................................................................................... 34 Owner Occupied Housing Value Trends ...................................................................................................................... 34 Overview of DFW Single Family Market ............................................................................................................................. 35 Mesquite Single Family Market .......................................................................................................................................... 37 Building Permits........................................................................................................................................................... 38 New Construction ........................................................................................................................................................ 38 Proposed/Planned Development ................................................................................................................................ 38 Single Family Sales Trends – Downtown Study Area .......................................................................................................... 39 “Solds” in the Study Area ............................................................................................................................................ 41 Study Area Current Listings ......................................................................................................................................... 42 Potential Housing Demand ................................................................................................................................................. 43 Mesquite Absorption ................................................................................................................................................... 43 3 City of Mesquite Downtown Market Analysis Downtown Absorption ................................................................................................................................................ 44 Market Conditions and Recommendations for the Downtown Study Area ................................................................ 44 Housing Market – Multifamily ...................................................................................................................... 45 Overview DFW .................................................................................................................................................................... 45 CMA .................................................................................................................................................................................... 46 Mesquite Multifamily Market ............................................................................................................................................