Residential feasibility studies help developers better understand a market, competitive options, and the market demand for residents. Several key components are necessary to provide a comprehensive picture of potential successes and failures of a project. The components involved in a recent condo feasibility study project completed by Drive Research are outlined below.
A residential feasibility study can answer key questions for your development project and help guide decisions to acquire financing.
Objectives
A client recently partnered with Drive Research to conduct a condominium market analysis. This condo market analysis included 3 components: (1) demographic and market trends analysis within a 30-mile radius of the site near the Finger Lakes in Upstate New York, (2) a competitive assessment of like-competing condo complexes in the Finger Lakes region and relevant market area to the property, and (3) a demand analysis of interest, appeal, and wanted amenities in such a complex.
The competitive condominium analysis and survey questions were customized to address the expected higher-income waterfront condominium market and targeted residential tenants. The client was looking to use the market research findings to help eliminate risk and guide decision-making for the condo and potential townhomes in the complex. The intent of the market analysis was to help serve as a basic check to determine and confirm demand in such a complex and property.
Approach
As stated, the condo feasibility study involved 3 components of market research. The findings from each of these 3 components are blended together to create powerful advice and recommendations for our clients. The 3 components are detailed below.
Component 1: Demographic and Market Analysis
The demographic and market analysis helped the client better understand the make-up of the current and expected market of residents for the condos. This included data and trends for ages, genders, household incomes, household sizes, and other core demographics for the designated market area (DMA). The market analysis also profiled several key segments of residents using Personicx clusters.
Component 2: Competitive Assessment
The competitive assessment inventoried townhomes and condo complexes in the DMA for the client. A total of 9 competitive like-condo complexes and 2 competing like-townhome complexes were analyzed. An in-depth analysis of properties was created which profiled amenities, parking, garages, waterfront, exterior make-ups, interior features, the lots, HOA fees, frequency of HOA fees, interior make-ups, interior features, appliances, and heating. Several pictures were added to the condo and townhome profiles.
Component 3: Online Survey
An online survey was administered to residents within a 30-mile and 50-mile radius of the property. The survey contained 15 questions and lasted approximately 3 minutes. An online panel was utilized to collect survey completes from a broad representation of population in the targeted geography. Survey fieldwork began on May 22 and lasted until June 6. A total of 101 surveys were completed for this study.
Report
The report was a summary of the data collected for the 3 components of the condo market analysis study. The report included a summary of key themes and a best recommendation as well as a section-by-section breakdown of data and findings from the demographic analysis, competitive assessment, and survey results. The appendix included relevant project files and images from client's condo project.
It was found 1 in 10 targeted residents within a 50-mile radius of the property were "very likely" to consider waterfront housing in the next 5 years. Most would consider the condo as their primary residence while 1 in 3 would consider it a secondary residence (summer home).
There was an extremely limited amount of inventory of waterfront condos and townhomes for sale in the market area. Average sales prices of condos and townhomes were included in the analysis. Housing units in the 30-mile radius were 86% occupied. Several price points were analyzed as part of the survey to understand cost thresholds for the condos and townhomes.
Central air, private balconies or outdoor space, and in-unit laundry were the 3 most requested amenities. Most preferred 2 or 3-bedroom options. Several pockets were identified as most-likely audiences including wealthy young professionals and those aged 55 to 64 seeking a retirement or second home.
Contact our Feasibility Study Firm
Drive Research is a feasibility study firm located in Syracuse, NY. Our feasibility study capabilities expand across the United States. Our in-house data resources, competitive assessment tools, and survey platform allow our team to analyze any location or market across the country.
Interested in a feasibility study for a condo, townhome, or apartment? Call us at 315-303-2040 or email us at [email protected]. You can also contact us using this form.