Fort Walton Beach Council agenda — 03-23-2010 Special-Soundside Develp. Project — reading text

age group. The under 25 age group has the lowest median income, followed by the 25 to 34 age group. MEDIAN HOUSEHOLD INCOME DISTRIBUTION 60, 000 40, 000 20,000 0 Series 1 $ 32, 350 $ 41, 651 $ 49,407 $ 57,877 $ 55, 764 $ 49, 598 $ 48, 119 Source: Age by Income Profile, STDB, Inc., ESRI Site Analysis Value Tech Realty Services, Inc. www.gotovalue.com Page 40 55-  Sound Side Apartments Fort Walton Beach Neighborhood Analysis Housing The majority of housing; units in the market are owner occupied. Rental housing includes all types of units such as apartments, duplexes, triplexes, manufactured housing, single- family homes, etc. The number of owner and renter occupied units is provided below: 2009 HOUSING MARKET FORT WALTON BEACH of Total Total Total: 100. 0% 24, 434 Owner occupied 59. 8% 14, 622 Renter occupied 40.2% 9, 812 Source: Housing Profile, STDB, Inc., ESRI Site Analysis OCCUPIED HOUSING UNITS 40. 2% ! i , t, yx. 13 0" ncroccupicd;' Rcntcroccupicd 59. 8% Source: Housing Profile, STDB, Inc., ESRI Site Analysis As shown below, the housing market in the defined neighborhood reports a vacancy factor of 9. 5 %. 2009 HOUSING MARKET FORT WALTON BEACH of Total Total Total: 100. 0% 26, 992 Occupied 90. 5% 24, 434 Vacant 9. 5% 2, 558 Source: Housing Profile, STDB, Inc., ESRI Site Analysis Value Tech Realty Services, Inc. www.gotovalue.com Page 41 56-  Sound Side Apartments Fort Walton Beach Neighborhood Analysis VACANCY AND OCCUPANCY 9.5% iZ G Occupied'! 0 Vacant I 90.5% Source: Housing Profile, STDB, Inc., ESRI Site Analysis The vacancy rate of 9. 5% includes all vacant homes regardless of availability. The distribution of vacancy in the defined neighborhood follows: 2009 MARKET VACANCIES Fort Walton Beach Total: 2, 558 For rent 1, 261 For sale only 345 Rented or sold, not occupied 202 For seasonal, recreational, or occasional use 276 For migrant workers 0 Other vacant 473 Source: Housing Profile, STDB, Inc., ESRI Site Analysis The majority of vacant homes in the defined neighborhood are in the category of " for rent." The distribution of total market vacancies illustrated above was based on the percentage distribution obtained for the year 2000, as there was no available information on the distribution of market vacancies for the year 2009. Conclusion The defined neighborhood is experiencing population growth, despite the recent economic recession. Population expanded by a rate of 7. 0% from 2000 to 2009, while total households increased by 9. 2% over that same period. As the area expands, there will be an increasing need for housing. The defined neighborhood exhibits mixed residential characteristics and has been experiencing growth over the past several years. The majority of the population in the defined neighborhood is within the working age cohort of 25 to 54, which includes a large percentage of families. This is supported by the proximity of employers, and a strong military, tourism, and medical presence. Median household income in the defined neighborhood is roughly $ 50, 000, with approximately one -half of all households in the defined neighborhood earning less than $ 50, 000 per year. This income demographic represents the primary households seeking rental housing. The immediate area surrounding the subject provides a variety of residential support services including schools, grocery stores, health facilities, retail opportunities, and more. An expanding population and stable economic atmosphere anchored by the presence of Eglin AFB will have a positive impact on the rental housing market. Value Tech Realty Services, Inc. www.gotovalue. com Page 42 57-  Sound Side Apartments Market Supply and Demand Analysis Market Supply and Demand Analysis Methodology The market analysis is based on the following steps: 1. Inventory apartments if they marketed themselves readily to the public ( yellow pages, apartment guide, etc.); 2. Quantify the level of demand currently accommodated; 3. Analyze job and population growth to estimate the future rental household demand that would likely reside within apartments; 4. Determine if the subject would satisfy the need of residents based on location, project description /amenities, etc; and, 5. Project absorption and rental rates. This market analysis focuses primarily on direct, primary interviews with management and marketing personnel at existing supply. Furthermore, we spoke with government officials concerning general economic and demographic growth activity and expectations within the market. Both national and state sources were utilized for demographic statistics. Within the subject market, there are several physical barriers that tend to define the primary market. Based on this information, the primary market area was defined as the greater Fort Walton Beach area including Cinco Bayou, Mary Esther, Ocean City, and Wright. This area can more generally be described as having the following borders: Boundary Feature Northern Eglin AFB Southern Santa Rosa Sound Eastern Choctawhatchee Bay Western Hurlburt Field / E lin AFB The following map illustrates the primary market with respect to the physical barriers that define the boundaries: Value Tech Realty Services, Inc. www.gotovalue.com Page 43 58-  Sound Side Apartments Market Supply and Demand Analysis The following table shows the census tracts that make up the defined market: CENSUS TRACTS 0217.00 0219. 00 0223. 00 0226.00 0229. 00 0218.01 0220. 00 0224.00 0227.00 0218.02 0221. 00 0225. 00 0228. 00 The subject is ideally located to service the rental housing needs of the defined area. The subject will provide affordable ( rent and income restricted) rental housing as part of a risk -share agreement with the Fort Walton Beach Public Housing Authority. Under this agreement, 50 units ( 25 %) will be project -based Section 8; 70 units ( 35 %) will be orientated towards 60% of Area Median Income; and the remaining 80 units ( 40 %) will be orientated towards 80% of Area Median Income. Secondary Market There is a secondary market for Fort Walton Beach that includes the inland coastal area. Workers from these coastal communities will travel to the beach for employment. This is one of the issues that the planners in the region are trying to correct. Long commute times and the rising cost of fuel have prohibited service industry personnel from financing their commute. As a result, developing affordable housing proximate to areas of employment is a device to help ease financial pressure on workforce households. Though a secondary demographic area exists that the proposed project is able to attract, the primary market is sufficient in size to support the subject. Thus, a secondary market was not layered into the demand analysis. Value Tech Realty Services, Inc. www.gotovalue.com Page 44 59-  Sound Side Apartments Market Supply and Demand Analysis Household Income By Age Group Parameters The household income statistics by age group for the primary market area are provided in the following table: MARKET HOUSEHOLD INCOME BY AGE GROUP Income Levels; 18 -24 25 -34 35 -44 45 -54 Total Less than $ 10, 000 Low .Income 124 224 308 239 895 10,